NAIROBI, Kenya – The government has announced the revival of its subsidised gas cylinder distribution programme, seven years after the “Mwananchi Gas Project” collapsed amid corruption scandals, funding shortfalls, and logistical hurdles.
In a public notice published on September 9, the Ministry of Energy and Petroleum invited reputable firms to submit Expressions of Interest (EOI) for the financing, procurement, and distribution of 6kg Liquefied Petroleum Gas (LPG) cylinders complete with seed gas and accessories.
The initiative, anchored in President William Ruto’s Bottom-up Economic Transformation Agenda (BETA), seeks to expand LPG adoption across all 47 counties, with a focus on rural and peri-urban households that still rely heavily on firewood and kerosene.
Tripartite funding model
Under the new plan, the government will cover 40% of the cost of cylinders, seed gas, and accessories.
Private sector players—mainly LPG marketers—will contribute another 40%, while consumers will pay 20% as a deposit.
The cylinders will be locally manufactured and fitted with track-and-trace technology under the supervision of the Energy and Petroleum Regulatory Authority (EPRA).
Selected LPG firms will become brand owners, tasked with distribution, refilling, and compliance with the Petroleum (LPG) Regulations, 2025.
To support domestic industry, the State Department has also issued a parallel tender for local manufacturing of the 6kg cylinders.
Firms must demonstrate technical capacity, facilities, and experience aligned with Kenyan standards.
Lessons from past failures
The “Gas Yetu Project,” launched in 2016/17 under retired President Uhuru Kenyatta’s Jubilee administration, aimed to supply 6kg cylinders and burners to one million low-income households at a subsidised price of about Sh2,000.
However, it collapsed due to corruption, poor planning, tender scandals, mistrust from private sector partners, and distribution flaws.
Officials now say the revamped model—with cost-sharing, stricter oversight, and dual tenders for distribution and production—will help avoid past mistakes.
Next steps
Interested firms have until Tuesday, September 23, 2025, at 11 am to submit EOIs at the Ministry’s offices in Nairobi. Late submissions will not be accepted.
If successful, the programme could cut Kenya’s dependence on biomass fuels, lower household energy costs, create local jobs, and advance environmental conservation targets.
