The ministry of Energy and Petroleum plans to increase access to LPG gas cylinders to 4.4 million households, through revenue generated from anti- adulteration Levy.
In a new plan Energy and Petroleum Cabinet Secretary Davis Chirchir said they would tap the fund to supply LPG cylinders to all Kenyan homes by 2028.
The government will collect Kshs 2.5 billion from the levy and use it to pay LPG gas cylinder suppliers.
The government of Kenya through the ministry aims at ensuring transition of all learning institutions in the country from the use of biomass for cooking to use of LPG by 2025,” said Chirchir.
President William Ruto had in February directed the ministry to embark on plans that will subsidize prices of cooking cylinders and enhance uptake of Liquefied Petroleum Gas (LPG) in the country within the next three years.
The dirty fuel attracts a Kshs 18 anti-adulteration tax per litre in a move to curb use of kerosene in contamination of other fuels like diesel.
The ministry estimates that the country consumes 10 million litres of kerosene per month.
The Kenya pipeline Company has already concluded the front-end engineering design for a 30,000 metric tonne LPG facility in Changamwe while it’s in the process of developing two more terminals.
The Kenya Kwanza administration also aims at promoting competition in the LPG business to bring down prices.
While speaking during the Q1 2023 State of the Petroleum Industry briefing, Chirchir noted that LPG consumption has been on an upward trend from 93,600 metric tonne in 2012 to 373,865 metric tonne in 2021.
However, consumption has now fallen as a result of the reintroduction of the 16 percent and 8 percent VAT in 2021 and 2022 respectively.
