The energy permanent secretary, Mr Patrick Nyoike has said the investment will complement ongoing efforts by the Kenyan pipeline company(KPC)to construct an LPG handling plant in Nairobi at a cost of $13.5 million.

The project will also involve construction of 200 metric tonnes of storage bullets in the industrial town of Athi River, located in the outskirts of the Kenyan capital. 

“We want to appeal to the private sector to extend our partisanships on the implementation of these vital projects that if completed would critically solve our energy crisis”, Nyoike said in the capital last week.

The main LPG project is in Mombasa and will involve the construction of 6,000 metric tonnes storage bullets. A cost study commissioned by the ministry revealed that the entire project will cost $50 million, a cost that motivated the ministry's call for private investors.

Already, the KPC has entered into an agreement with the Kenya Petroleum Refineries for the development of the two projects. More private investors are expected to come on board.

The two projects are expected to drastically reduce the cost of LPG in the country through the importation of large shipments of commodity which will result in reduced supply cost through the related economies of scale.

The projects fall under the government’s Economic Recovery Strategy (ERS) where the KPC has been mandated to roll out a massive programme to help ease the cooking gas shortage in the country.

After the two giant projects, the government will venture - through KPC - into such plants in hinterland towns of Nakuru, Kisumu , Eldoret, Kakamega and Sagana.

“We are committed to the supply of safe and clean energy resources as it fall in our key mandate as a company”, said KPC managing director Mr.George Okungu. “The LPG projects are aimed at reducing over reliance on electricity”, Okungu further stressed.

The underlying objective of the project is to enhance supply of LPG in the country, promote consumption of clean fuel thereby reducing environmental degradation.

Statistics show that more than 70% of Kenyan households use firewood posing a threat to the environment through wanton cutting of trees for use in raw form or charcoal burning.

Keywords: kenya energy business climate nature