Launch remarks · 16 December 2024
Distinguished Guests, Ladies and Gentlemen,
As the world grapples with the profound impacts of climate change, it is imperative for us to act decisively in addressing environmental degradation, deforestation, pollution and the alarming rise in greenhouse gas emissions. These challenges demand urgent, coordinated and innovative solutions to reverse the trajectory of environmental harm. It is, therefore, a great honour to join you today for this significant occasion to launch the Liquefied Petroleum Gas (LPG) Initiative for Public Learning Institutions in Kenya.
Kenya, like the rest of the world, is committed to a complete and inclusive transition to cleaner energy for all households, companies, producers, and consumers. At the heart of this shift lies Liquefied Petroleum Gas, a cleaner and more efficient alternative to traditional cooking fuels. LPG is notable for providing consistent, controllable, and high heat output, making it an ideal solution for households and institutions seeking sustainable energy options.
To facilitate this accelerated transition, the government unveiled the National LPG Growth Strategy in October 2023. This strategy aims to increase LPG consumption from 6.5 kg to 15 kg annually and expand LPG penetration from 24% to 70% by 2028. These ambitious targets are supported by a comprehensive framework designed to enhance cooking gas supply chains, from importation to end consumers, ensuring both accessibility and affordability.
Through the Ministry of Energy and Petroleum, the government is leading the implementation of this strategy by focusing on thematic areas such as policy and regulatory frameworks, public learning institutions, low-income households, housing reticulation, and other innovations.
To support these efforts, the government is partnering with the private sector to establish a common-user import facility at the Kenya Petroleum Refineries Limited. By streamlining the importation process and adopting an Open Tendering System, LPG demand has increased significantly. In 2023, consumption rose to 360,594 metric tonnes, up from 333,830 metric tonnes in 2022, with per capita usage growing from 6.5 kg to 7 kg.
These achievements reflect the efficiency of a unified implementation approach, enhancing collaboration across ministries, departments, and agencies to drive impactful initiatives. For instance, the partnership between the Ministry of Energy and the Ministry of Education on clean cooking solutions and the collaboration with the State Department of Housing and Urban Development on LPG reticulation in affordable housing projects exemplify this collective effort.
Additionally, the government has zero-rated taxes on LPG and is actively improving storage infrastructure nationwide. Addressing scale, sustainability, and affordability is critical, and we have developed robust policies, regulations, and standards to ensure the sector’s growth while safeguarding health and safety. Consumer education is also pivotal to this journey. To build trust and drive adoption, we are rolling out a nationwide awareness campaign on LPG benefits and safety, alongside training for technicians and stakeholders across the value chain. These efforts aim to demystify LPG and promote its widespread adoption as a sustainable energy solution.
A thriving LPG sector promises significant economic benefits, including increased investment and job creation. By minimising entry costs and implementing incentives for producers, we aim to make LPG accessible to all Kenyans, beginning with households at the bottom of the economic pyramid. Additional benefits of this initiative include improved living standards and increased opportunities for Micro, Small, and Medium Enterprises to participate in the LPG value chain.
Ladies and gentlemen, the government’s overarching priorities in implementing ambitious and inclusive economic transformation remain clear. We must succeed in keeping the cost of living sustainable, eradicating hunger, enhancing food and nutritional security, creating jobs, increasing productivity, expanding our tax revenue base, and improving our foreign exchange balance. Given its strong alignment with efficiency and sustainability, the LPG sector supports these goals and offers a pathway to a more sustainable and prosperous future. We have a responsibility to ensure the continued growth of the LPG industry and make it affordable and accessible to all Kenyans. A primary strategy by which we have discharged this responsibility is the sustained and coordinated undertaking to create a business-friendly institutional and operational environment. By implementing supportive policies, we foster innovation, protect consumers, safeguard the environment and attract investment.
Consequently, today’s launch marks a significant and fundamental step in this journey. As part of the National LPG Growth Strategy, we are introducing clean cooking solutions in public learning institutions to replace biomass as a source of energy for heating and lighting. The initiative begins with a pilot programme initially involving 20 institutions and will be expanded to all boarding schools in the next one year.
This launch, therefore, symbolises the formal beginning of a transformational journey that will make the learning environment of our children safer, cleaner and better while contributing significantly to environmental conservation. High biomass energy demand undermines afforestation efforts to a great extent. By reducing biomass use and accelerating tree planting efforts, we will enhance forest cover and secure a healthier environment for generations to come.
I wish to thank all stakeholders who have joined us in this endeavour. Together, we are taking a bold step towards empowering Kenyans with cleaner energy solutions and a more dignified quality of life. Thank you for walking with us on this remarkable journey to transform Kenya's energy landscape. Thank you. God bless you. God bless Kenya.