Kenyans will face further delays in accessing affordable cooking gas following the government’s announcement that negotiations with Saudi Aramco have failed. This setback hampers efforts to enhance availability and reduce costs of liquefied petroleum gas (LPG).
On March 31, 2026, the Ministry of Energy, led by Cabinet Secretary Opiyo Wandayi, informed the Senate Energy Committee that discussions with Aramco Trading did not result in a favorable agreement, leading to the abandonment of plans to enhance the country’s LPG infrastructure.
During his testimony before the committee, chaired by Senator Oburu Odinga, Wandayi confirmed that the proposed Memorandum of Understanding (MoU) with Aramco Trading Fujairah FZE was not executed due to disagreements over the terms.
“The intended MoU did not materialize as the parties could not reach a consensus on the terms and conditions,” Wandayi explained.
This collapse means the Oil Sustainability Programme, intended to finance the distribution of 8.4 million LPG cylinders, will not proceed as planned.
Wandayi highlighted that the proposed $20 million financing deal came with stringent conditions, such as requiring exclusive rights to supply oil products, which the government rejected.
“The $20 million offer included serious conditions, including exclusive supply rights, which we found unacceptable. Additionally, the funds were not to be received as a single package but through multiple installments, which was not feasible for us,” he stated.
Despite this setback, Wandayi assured lawmakers of ongoing cooperation with the committee, offering to provide additional materials and data as needed.
This explanation, however, raised further questions among lawmakers, particularly regarding the decision not to sign a letter of authorization to initiate the project.
The committee chairman expressed concerns from smaller petroleum dealers about potential market dominance by multinational corporations. Wandayi acknowledged these issues and outlined measures the Ministry of Energy is implementing to address them.
He also noted the progress made in increasing the country’s LPG storage capacity in recent years and assured that adequate petroleum supplies would be available soon.
“We have sufficient stocks of all petroleum products to last until April, and we have agreements with Gulf international energy companies to ensure a reliable supply,” Wandayi said.
Looking ahead, the government is now seeking private sector involvement to revitalize the LPG expansion program. Wandayi mentioned that the ministry has received proposals and identified four local companies to assist in manufacturing cylinders, thereby boosting production capacity.
Additionally, the government plans to utilize increased petroleum levy collections to fund the development of LPG infrastructure, including import and storage facilities. Legislators have recently approved raising the Petroleum Development Levy from 40 cents to Sh5.40, which is anticipated to generate significant revenue for the LPG program.
The failure of the Aramco deal poses a challenge to President William Ruto’s goal of making clean cooking energy more affordable and accessible. Since 2024, Kenya has been in negotiations with Saudi Arabia to secure a floating facility for LPG storage and processing near the Port of Mombasa.
Despite these hurdles, Wandayi reaffirmed the government’s commitment to advancing the LPG sector.
