President William Ruto has announced significant changes to Kenya’s Liquefied Petroleum Gas (LPG) procurement process, aimed at lowering prices for consumers.
During the launch of the Liquefied Petroleum Gas Programme for public institutions at Jamhuri High School in Nairobi on Monday, December 16, Ruto revealed that the government would adopt the Open Tender System (OTS) for procuring gas products.
This move is also part of ongoing efforts to reduce carbon emissions from fossil fuel use.
“Going into the future, we will transition the purchase of gas in Kenya to an open tender mechanism (OTS),” Ruto explained. “This OTS will support the competitive purchase of gas, ensuring lower prices and leveraging our country’s scale.”
In addition to the OTS, the President announced that the government would partner with the private sector to establish a common user import facility. This facility, located at Kenya Petroleum Refinery Limited, will help private sector players import gas without the burden of securing storage facilities.
Ruto clarified that the new directive would align LPG procurement with the petroleum products tendering system.
Until now, OTS had only been used for the importation of petroleum products such as diesel, petrol, and kerosene.
With these changes, Ruto aims to enhance competition, improve market efficiency, and reduce LPG prices for consumers across the country.