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Kenyans continue to grapple with steep cooking gas prices, paying more than double the wholesale cost, even after the government scrapped key taxes meant to make the commodity more affordable.
A market investigation by NTV has revealed that oil marketing companies (OMCs) are purchasing liquefied petroleum gas (LPG) at Sh97 per kilogram but are selling it to consumers at between Sh226 and Sh256 per kilogram.
This means that a standard 13kg gas cylinder, which costs around Sh1,261 at wholesale, is being sold for upwards of Sh3,160 — a more than 150% markup.
These revelations come months after the government removed the 8% Value Added Tax (VAT) on imported LPG and scrapped two other levies — the 2% Railway Development Levy and 3.5% Import Declaration Fee — in a bid to lower prices and ease the cost of living.
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A cooker using LPG gas
But rather than passing these savings on to consumers, OMCs and retailers appear to have retained the margins, raising serious questions about price gouging in a largely unregulated market.
Prices of gas in other EAC countries
Price comparisons paint an even grimmer picture for Kenyan consumers. In Tanzania, the price of cooking gas is three times cheaper than in Kenya.
Ugandans pay nine times less, and Ethiopians enjoy prices that are 23 times lower than what Kenyan households are being charged.
Part of the problem lies in Kenya’s current policy landscape. As of May 2025, the Energy and Petroleum Regulatory Authority (EPRA) does not regulate LPG prices, nor does it impose profit margin caps on suppliers, distributors, or retailers.
This lack of regulation has opened the door to wild price disparities across the country.
However, change may be on the horizon. EPRA announced earlier this year that it is working on new regulations to control cooking gas prices, with a framework expected to roll out following Cabinet approval.
The move is aimed at stabilising the market and protecting consumers from exploitative practices that have become commonplace in the sector.
EPRA is also looking to introduce stricter licensing requirements that will demand higher compliance standards from all LPG dealers.
Under the new rules, traders must possess a minimum number of gas cylinders and meet enhanced safety and quality benchmarks. These measures are aimed at streamlining the market and ensuring consumer safety.
However, many small dealers may find it difficult to comply due to limited capital and infrastructure, putting their businesses at risk.
As a result, the LPG market could see a wave of consolidation, with larger, better-resourced companies gaining more control.
LPG gas cylinders
This shift is expected to improve safety and service delivery but may also reduce competition and limit access in remote areas where small traders currently dominate.
For consumers, the impact could be twofold: while the new rules promise safer and more reliable gas services, they may also lead to reduced availability and potentially higher prices, particularly in underserved regions.
The balance between regulation, safety, and affordability will be crucial as these changes take effect.