The cost of cooking gas in Kenya has reached an all-time high despite government efforts to make it more affordable. Data from the Kenya National Bureau of Statistics indicates that the average price of a 13-kilogram cylinder hit a record high of Sh3,231.84 in March 2024, marking a 1.4% increase from February and a 3% jump compared to the same period last year. This surge comes even after the government removed the 8% Value Added Tax (VAT) on Liquefied Petroleum Gas (LPG) in 2023. Analysts attribute the recent price increase to various factors, including the depreciation of the Kenyan shilling against major currencies, which has inflated the cost of importing LPG.
High international LPG prices, driven by winter demand and the Russia-Ukraine conflict, have also contributed to the issue. However, there is hope for a potential price decrease in the coming quarters as summer approaches in the Northern Hemisphere and the shilling strengthens. The government has a long-term strategy to promote LPG use, including mandating new housing developments to include LPG infrastructure, establishing shared LPG import terminals, subsidizing gas cylinders for low-income families, and promoting LPG use in institutions. One significant project is the construction of a bulk LPG receiving terminal at the Dongo Kundu Special Economic Zone. These initiatives underscore the government’s commitment to promoting LPG use in Kenya, although their success is yet to be seen.