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Government Reassures of an Investor-Friendly Environment to Boost LPG Sector


Kilifi: The Government has reaffirmed its commitment to fostering a thriving and investor-friendly environment where the private sector is encouraged and empowered to flourish. This strategic pledge, aimed at unlocking the full potential of private enterprise, is seen as a key catalyst for job creation, especially for the nation’s growing youth population.



According to Kenya News Agency, the Cabinet Secretary for Energy and Petroleum, Opiyo Wandayi, highlighted during his official visit to the Lake Gas site that this initiative is a national effort to accelerate the adoption of Liquefied Petroleum Gas (LPG) as a cleaner, safer, and more affordable cooking fuel for households across the country. The government’s strategy involves enabling private players to scale innovation, distribution networks, and infrastructure, thus reducing dependence on traditional fuels and stimulating job creation, LPG supply chains, and related industries.



“We are here to do a site visit to assess this LPG facility’s preparedness for the arrival of the first vessel carrying LPG gas,” stated Wandayi. “We have said and want to reiterate that, as a government, we are committed to providing an enabling environment for the private sector to invest their money and for them to create employment opportunities for our young people. I must commend the leadership of Lake Gas for this wonderful initiative, and for taking their time to invest in this facility, which so far, I’m told, has cost about $80 million-and that’s not small money,” he added.



The Lake Gas facility is in its second phase of development, involving the construction of an additional 15,000 metric tons of LPG storage capacity, bringing the total storage capacity to 25,000 metric tons upon completion. This expansion is a significant step toward strengthening the country’s energy infrastructure and ensuring a stable, reliable supply of LPG to households and businesses nationwide.



The Cabinet Secretary noted that this development will likely lead to a reduction in the ultimate cost of LPG for the public. “If we open up this space to more people to bring in LPG and for more volumes to flow in, ultimately, the forces of demand and supply will set in, and the price will reach its level where it should be. And that’s what we need,” he said.



Wandayi also expressed gratitude to the County Government of Kilifi, under Governor Gideon Mung’aro, for supporting the private sector in establishing businesses in the county. The first vessel is expected in two weeks, marking the facility’s official opening.



The Principal Secretary for Petroleum, Mohamed Liban, emphasized the importance of collaboration among stakeholders to expand LPG access across the country. “By bringing all stakeholders on board, both local and international, we can consolidate our efforts and move forward together to establish a common user facility that empowers local capacity,” he said.



Kilifi County Governor, Gideon Mung’aro, reiterated the county’s commitment to creating a conducive environment for investment, encouraging companies like Lake Gas to train local youth and prioritize employment opportunities for them.



Moris Mutiso, Manager of Supply and Operations at Lake Gas, confirmed the project’s commitment to empowering the local community, with mechanisms in place to ensure that at least 70% of the workforce will be recruited from Kilifi County. The project is expected to create between 50 to 60 permanent jobs within the facility and generate over 1,000 indirect employment opportunities in areas such as transport, logistics, and support services.



“This project is not only a milestone for Lake Gas but also a major contributor to the economic growth and revenue base of Kilifi County,” concluded Mutiso.

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