This archive report was first published on 26 August 2019.
Kenya's Energy and Petroleum Regulatory Authority (EPRA) has unveiled a series of reforms aimed at making cooking gas more affordable for households.
On August 26, 2019, EPRA announced plans to change the Liquefied Petroleum Gas (LPG) import regime to an open tender system, similar to other petroleum products, in a bid to provide price relief to households.
According to EPRA director-general Pavel Oimeke, the agency also plans to install an LPG testing facility at the Namanga border with Tanzania to boost consumer confidence and increase supply.
"The LPG test equipment has been installed at Kenya Bureau of Standards Nairobi laboratories to enable sampling and testing. Regular quality assurance through testing will improve consumer safety during use of LPG," Oimeke said.
Currently, only 10 percent of Kenya's annual LPG consumption comes from Tanzania due to a lack of testing facilities at the border, resulting in traders fearing regulatory hurdles.
However, with the increased import from Tanzania, the supply is expected to rival the current 90 percent import coming through Mombasa, leading to lower prices.
Additionally, the ministry plans to construct a common user facility in Mombasa to enable importation through an open tender system, as well as a 2,000 metric tonnes LPG distribution and filling depot in Nairobi.
Smaller regional depots in Kisumu, Nakuru, Eldoret, and Sagana are also expected to boost distribution and increase access to the clean cooking energy.
EPRA has also allowed oil marketers to pack cooking gas in 0.5kg domestic cylinders to improve affordability for lower-class consumers.
"Already, EPRA has licensed one company to market the 0.5kg cylinders. Further, EPRA has been working closely with two companies authorized to undertake pilots of smart LPG meters which allow consumers to pay for the LPG they can afford just like it happens in electricity tokens thus reducing the burden associated with refill of a full cylinder," Oimeke said.
Kenya consumes 22,700 metric tonnes of LPG every month.
