Kenyan government rolls out cheap gas for just USD20 targeting poor homes

Poor Kenyan households now have a reason to smile.

The government has rolled out a subsidy plan targeting poor homes which will see them now buy 6kg gas cylinders with cooking accessories at a discounted price of Sh2,000 ($20), down from about Sh5,000 ($50).

The cylinders, dubbed Gas Yetu, will be distributed to the poor households across the country by State-owned National Oil.

“This campaign is meant to increase the uptake of cooking gas by low-income households,” National Oil CEO MaryJane Mwangi said.

Under the plan, the Ministry of Energy will buy about one million new cylinders and then distribute them across the country.

Gas Yetu, is set not only becoming a game changer in weaning poor homes from the use of firewood, charcoal and kerosene for cooking but also go a long way in ensuing poor Kenyans leave long healthy lives devoid of respiratory diseases caused by smoke.

Also read: KENYA MAY START USING NATURAL GAS FOR POWER GENERATION BEFORE END OF 2018

The Treasury has allocated the Energy ministry with Sh3.1 billion ($30m) for the programme.

Despite, treasury in July last year scrapping value added tax (VAT) on cooking gas to cut costs and boost uptake, poor homes have continued to find the prices prohibitive, hopefully not anymore.

Internationally, gas prices are stable and experienced minimum movements.

The average price of LPG around the world is 0.63 U.S. Dollar per liter.

Gasoline prices increased the most in Tanzania, Ivory Coast, and Estonia while gasoline prices went down by more than 3% in Panama, Cambodia, and India last week.

All countries have access to the same natural gas prices of international markets but then decide to impose different taxes and subsidies thus creating differences in prices.