The Energy Regulatory Commission has withdrawn licenses of 27 fuel stations across the country for selling contaminated fuel and petroleum products meant for export.
The stations which ERC did not however name will have to pay heavy penalties before their licenses are reinstated or face a permanent ban.
Section 95 of the Energy Act prohibits the storage, transportation and sale within Kenya of petroleum products that do not conform to set standards or selling adulterated petroleum products. The section also forbid distributors from selling within Kenya petroleum products intended for export to neighboring countries.
A monitoring exercise carried between July 2012 and December 2012 by ERC together with Kenya Revenue Authority, Kenya Bureau of Standards and other government agencies involving 841 retail outlets found 97 per cent were compliant while 27 stations were non compliant.
"The operators of the defaulting outlets have had their licenses withdrawn and were further required to pay penalties and taxes prescribed under the applicable tax laws before consideration for resumption of business," said ERC in a newspaper ad.
The notice showed nine of the outlets had paid the penalty fees ranging between Sh200 000 to Sh1million. The regulator said it has developed a continuous monitoring programme of the quality of petroleum products being sold throughout the country.