An ambitious project by the government to provide poor households with affordable cooking gas could be collapsing.
A report by the Auditor General indicates that the future of the project, which seeks to stop over-reliance on charcoal and firewood for cooking and in turn reduce respiratory diseases, remains uncertain.
The report, which has been tabled in the National Assembly, cited incomplete implementation of the Mwananchi Liquefied Gas Project started during the 2016-17 financial year.
It noted that the Ministry of Energy and Petroleum contracted 10 firms to supply various components of the project at an aggregate cost of Sh999.9 million.
But written agreements between the suppliers and the government did not specify contract performance duration.
“Therefore it is not clear whether the department has proper recourse to enforce the contracts in the event the firms delay or fail to deliver the cylinders altogether,” the report said.
The report further said the project has not attained its purpose and value for money not obtained on expenditure totalling Sh870.3 million incurred on the project as at June 30, 2018.
“The status of the project remains unclear as its implementation appears to have stalled,” the report added.
It has also emerged that further budgetary allocations to the project were reduced by 50 per cent from the initial Sh2 billion to Sh1 billion in 2016-17.
“It is doubtful whether the department will implement the project to the scale envisaged at inception and whether the project’s objective of enhancing the use of modern cooking fuels by low-income households will be attained."
The government rolled out the project through the National Oil Corporation.
The 6kg cylinders were to be distributed at a discounted price to households that would otherwise not afford them.
NOC was to further develop a reliable distribution network that would enable residents to access the gas at the nearest shopping centres.
It was to enhance liquefied petroleum gas penetration from approximately 10 per cent to 70 per cent within three years.
Lack of sufficient storage facilities for LPG and few distribution channels has also hampered the uptake of the fuel.
Government data shows the actual consumption of LPG per year stands at approximately 170 kilotonnes (KT) as compared to a demand of 300 KT per year.
The project further sought to double the number of LPG distributors from four to eight million.
The report further stated that out of the 150,668 cylinders supplied, only 66,103 had been inspected and undisclosed number distributed to consumers in two counties.
It further said one of the two suppliers contracted to supply 148,898 cylinders delivered 23,873 cylinders in July 2017 at Sh52.4 million.
Some 15,350 of the cylinders valued at Sh33.7 million were found to be faulty.
“Attempts by the department to enforce the performance bond amounting to Sh40.3 million by the supplier were unsuccessful.”
The report said the department acknowledged that gas cylinders delivered by one of the suppliers did not meet the desired standards and cited suits filed by the Consumer Federation of Kenya.
Edited by R.Wamochie
