Kenya Eyes Cheaper LPG Through Common User Facilities and Public-Private Partnerships

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In a bid to bring down the cost of cooking gas and enhance energy accessibility, the Kenyan government is intensifying efforts to operationalize a network of common user Liquefied Petroleum Gas (LPG) facilities.

The initiative forms part of a wider national LPG Growth Strategy aimed at transforming Kenya’s energy landscape and ensuring clean, affordable fuel reaches households, schools, and institutions across the country and the East African region.

Principal Secretary for Petroleum, Mohammed Liban, underscored the government’s commitment to this strategy during an inspection tour of Lake Gas Limited’s newly constructed LPG storage and handling facility in Vipingo, Kilifi County.

The visit, conducted alongside a multi-agency delegation, aimed to assess the facility’s readiness ahead of its commissioning.

According to PS Liban, the use of common user LPG infrastructure will significantly lower distribution costs, which in turn will make LPG more affordable and accessible to ordinary Kenyans.

“Once we have common user facilities in place, we will be able to significantly reduce the price of gas, making it more accessible and affordable for Kenyans.” Liban explained.

“This is part of our larger vision for a regional procurement and distribution strategy that will ultimately reach every household,” he stated.

Liban emphasized that the government is actively collaborating with key industry stakeholders, including the African Gas and Oil Company (AGOL) and the Kenya Pipeline Refineries Limited (KPRL), to streamline infrastructure development.

The approach is expected to unlock efficiencies and create a more competitive environment for both public and private sector players.

The common user facility model allows multiple companies to access and utilize centralized LPG terminals, reducing duplication of infrastructure and enhancing economies of scale.

This model is at the heart of President William Ruto’s clean energy vision, which promotes the use of LPG as a safer, environmentally friendly alternative to biomass fuels, especially in rural areas where charcoal and firewood remain widely used.

“Affordability and accessibility are at the heart of our strategy. By building infrastructure and encouraging competition, we will lower prices and increase supply. This is how we secure clean energy for all Kenyans while protecting our forests and environment,” Liban said.

During the inspection, the PS and his team—which included representatives from the Kenya Pipeline Company (KPC), Energy and Petroleum Regulatory Authority (EPRA), National Environment Management Authority (NEMA), Kenya Bureau of Standards (KEBS), and officials from the Ministry of Energy—were briefed on the facility’s capabilities.

The Lake Gas Vipingo terminal currently features four high-capacity LPG storage spheres with a combined capacity of 10,000 metric tons.

Each sphere can hold up to 2,500 metric tons. Additionally, the site includes four gantries designed to load up to 1,000 metric tons of LPG daily within a 10-hour operating window.

The facility also boasts state-of-the-art safety features, including automated monitoring systems and fire suppression infrastructure capable of running on both electric and backup generator power.

“The construction quality is impressive, with top-tier security systems and full regulatory compliance achieved, save for a few minor adjustments.” Liban stated.

“These will be addressed before full commissioning,” he confirmed, emphasizing that rigorous safety tests will be conducted due to the flammable nature of LPG.

Liban also highlighted the importance of the private sector’s role in realizing the government’s LPG agenda.

Lake Gas Limited, which developed the Vipingo facility, is being positioned as a model for public-private collaboration that can be replicated nationwide.

“The government has already played its part by setting the policy framework and facilitating infrastructure. We now invite the private sector to come on board in larger numbers. The LPG space has enough room for all committed players to thrive,” he said.

Looking ahead, the facility’s management has announced plans to expand the storage capacity by an additional 15,000 metric tons, a move expected to significantly strengthen Kenya’s bulk LPG handling and regional distribution capabilities.

Ramo, the Regional Head of Lake Gas Limited, welcomed the government’s support and reaffirmed the company’s readiness to launch the first phase of the project.

“We are grateful for the visit and support from the Ministry and regulatory agencies. We are ready to commission this world-class facility, which we believe will set a new benchmark for LPG infrastructure in the region,” he said.

The Lake Gas terminal is set to be officially commissioned within the month, marking a major milestone in Kenya’s journey toward affordable, clean energy access for all.

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