Kenya Pipeline Plans Cooking-Gas Plants Worth $125 Million

  • Two facilities proposed for capital and port city of Mombasa
  • Nation moving cooking fuel away from charcoal and firewood
Photographer: Konstantinos Tsakalidis/Bloomberg
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Kenya Pipeline Co. plans to build facilities worth $125 million to handle and store liquefied-petroleum gas with a view to boosting cooking-gas use in the rapidly urbanizing nation, Managing Director Joe Sang said.

The government in East Africa’s biggest economy has scrapped value-added tax on cooking gas and has subsidized the cost of 6-kilogram (13-pound) cylinders in a bid to make the fuel more affordable and attractive for its citizens, most of whom prefer cheaper charcoal, firewood and kerosene. For city dwellers LPG is more convenient and currently 30 percent of Kenyans live in urban areas. The total number of people living in towns is expected to quadruple by 2045, according to the World Bank.