The energy ministry says it will use revenue generated from anti-adulteration Levy, to increase access to LPG gas cylinders to 4.4 million households.
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 Sh2.5 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 subsidise 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 Sh18 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 administration also aims at promoting competition in the LPG business to bring down prices.
“We should bring the LPG business into the open tender system to get better pricing, bigger vessels coming into our country as we build these facilities from Mombasa, to intra lands and homes,” he said.
Chirchir was speaking during the quarter one 2023 State of the Petroleum Industry briefing where it emerged 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 per cent and eight per cent VAT in 2021 and 2022 respectively.
