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State revives gas cylinder distribution plan with new tender call

The initiative seeks to accelerate LPG adoption across all 47 counties

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by FELIX KIPKEMOI

News09 September 2025 - 11:23
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In Summary


  • The programme is part of the Bottom-up Economic Transformation Agenda (BETA), which emphasises affordable, clean cooking energy as a pillar of social welfare and environmental sustainability.
  • Under the proposed financing model, the government will cater for 40 percent of the manufactured cylinder cost, seed gas, and accessories.
Some of the gas cylinders that were distributed during the last project/COURTESY

The government has announced the revival of its subsidised gas cylinder distribution programme, seven years after a similar project collapsed amid logistical and financial challenges.

In a public notice carried in the September 9 edition of MyGov, the Ministry of Energy and Petroleum, through the State Department for Petroleum, has invited reputable firms to submit Expressions of Interest (EOI) for funding, procurement, and distribution of 6kg Liquefied Petroleum Gas (LPG) cylinders, complete with seed gas and accessories.

The initiative seeks to accelerate LPG adoption across all 47 counties, with priority given to rural and peri-urban households where reliance on firewood and kerosene remains high. 

The programme is part of the Bottom-up Economic Transformation Agenda (BETA), which emphasises affordable, clean cooking energy as a pillar of social welfare and environmental sustainability.

Under the proposed financing model, the government will cater for 40 per cent of the manufactured cylinder cost, seed gas, and accessories. 

Private sector players, mainly LPG marketing companies, will contribute another 40 per cent, while consumers will cover 20 per cent as a deposit on the cylinder.

“The LPG cylinders will be manufactured locally and fitted with track-and-trace technology under the supervision of the Energy and Petroleum Regulatory Authority (EPRA),” reads part of the notice. 

Successful LPG marketing firms will be designated as brand owners, tasked with refilling and maintaining the cylinders in compliance with the Petroleum (LPG) Regulations, 2025.

In addition to distribution, firms will also be responsible for supplying burners and grills to ensure households receive complete starter kits. 

The government has pledged to prequalify local manufacturers and share details with the selected firms to support domestic production and job creation.

The announcement marks a significant reboot of a project first rolled out in 2018 under the “Mwananchi Gas Project,” which aimed to provide affordable clean cooking solutions to low-income households. 

That earlier plan, however, stalled over claims of poor planning, corruption, and failure to secure reliable private sector partnerships.

By leveraging a tripartite funding model and enhanced regulatory oversight, the State Department for Petroleum hopes to avoid past mistakes and scale up LPG penetration nationwide.

Interested firms have until Tuesday, September 23, 2025, at 11 am to submit their proposals at the Ministry’s offices at KASNEB Towers II, Nairobi. 

“Late submissions will not be accepted,” the notice further reads.

If successful, the programme could significantly reduce Kenya’s dependence on biomass fuels, cut household energy costs, and contribute to environmental conservation goals.

At the same time, the State Department has also issued a separate tender inviting Expressions of Interest for the manufacturing of the 6kg cylinders. 

Reputable firms or consortia are required to demonstrate technical capacity, equipment, facilities, and experience in line with Kenyan Standards. 

The government says the dual tender approach, one for distribution and another for production, is designed to support local industries, create jobs, and guarantee quality control throughout the supply chain.

Successful manufacturers will work under the same financing framework, with the government, private sector, and consumers each contributing to the overall cost.

“By involving both local manufacturers and private distributors, we are strengthening the supply chain and making clean cooking energy more accessible and sustainable,” reads the notice.

Interested firms also have until Tuesday, September 23, 2025, at 11am to submit their proposals.

The Mwananchi Gas Project was launched in 2016/2017 under retired President Uhuru Kenyatta’s Jubilee government.

It was popularly branded as the “Gas Yetu Project”, targeting distribution of 6kg cylinders with burners to at least one million low-income households at a subsidised cost of about Sh 2,000 per kit.

Some of the causes which led to its collapse are corruption and tender scandals, poor quality cylinders distributed posing safety risks, funding shortfalls, private sector mistrust and a lack of a clear distribution framework.

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