Petrol station investments have become increasingly popular among wealthy individuals due to their lucrative returns. Some station owners earn up to $10,000 monthly from leasing, depending on location.
This steady income stream has attracted many landowners to develop petrol stations, securing permits and partnering with petroleum companies, which often finance the construction in exchange for a profit-sharing lease.
However, the boom in petrol station investments has resulted in poorly planned developments, with more entrants rushing into the market without proper planning.
Authorities are now tightening construction regulations to ensure compliance with modern standards and curb the reckless spread of stations.
Recent inspections revealed that 19 petrol stations in Kigali do not meet the required standards and are set to be demolished.
Many of these stations were found to be located in wetlands, near water sources, or in environmentally sensitive areas.
Nine of these stations have been given a 60-day notice, starting September 4, 2024, to be demolished by their owners.
The affected stations were identified during a meeting between regulatory authorities and petroleum investors.
These stations are located in wetlands earmarked for restoration in Kigali, including Gikondo, Rwampara, Rugenge-Rwintare, Kibumba, and Nyabugogo, part of a larger project funded by the World Bank with an $80 million budget aimed at restoring 408 hectares of wetlands.
Among the stations marked for demolition are three Engen stations (one at Poids Lourd and two at Giticyinyoni), two SP stations (one at Rwandex and one at Rugunga), a Rubis station at Giticyinyoni, the Maxi station at Poids Lourd (formerly Car Wash), Lake Petroleum on the road to Rusororo, and the former Hashi station at Kinamba along the road to Gisozi.
While many investors acknowledge the inevitability of this decisionâ€"especially as nearby developments have already been clearedâ€"the demolitions signal a broader crackdown on non-compliant stations. This is just the first phase, with more stations slated for demolition later.
Stricter construction regulations
The 2017 regulations required stations that did not meet standards to either renovate within two years or face demolition within five years.
The updated 2023 regulations shorten the timeline, giving owners two years to either renovate or demolish their stations.
With the revised rules in place, stations that fail to comply by 2025 will face demolition, including 10 additional stations identified in the recent inspections.
Many of these stations were built before current regulations, and their locations are now considered unsuitable under the new guidelines.
Increasing distance between stations
Rwanda currently has 337 petrol stations, with 129 located in Kigali. Many are situated too close to residential areas or in environmentally or safety-sensitive zones.
Along the seven-kilometer stretch between downtown Kigali and Remera, there are 13 stations, demonstrating the overcrowding problem.
In the Eastern Province along the Bugesera road, station construction is rapidly increasing as investors anticipate heavy traffic from the soon-to-be-completed Bugesera International Airport.
To address these issues, current regulations mandate a minimum distance of 1,000 meters between stations along the same road.
IGIHE has learnt that these regulations are under review, with potential increases in the required distance between stations to five or even 10 kilometers in some areas.
IGIHE
