Government Advances Petroleum Commercialisation and Clean Energy Access

The Government has reaffirmed its commitment to strengthening Kenya's petroleum sector through regulatory reforms, petroleum resource commercialisation, and expanded access to clean cooking energy.

Speaking on behalf of Principal Secretary State Department of Petroleum PS Kello Harsama, 

Mohamed Birik who is the Secretary Administration at the Ministry of Petroleum, said the government is working closely with the Energy and Petroleum Regulatory Authority (EPRA) to create a stable and predictable investment environment in the petroleum sector. 

He noted that EPRA has undertaken public participation on seven draft regulations aimed at improving governance in the petroleum industry. The proposed regulations cover critical areas including land access, cost management, crude oil and natural gas pipeline operations, storage management, local content, and environmental, health and safety requirements.

Birik said the government continues to make significant progress towards commercialising Kenya's petroleum resources and reducing reliance on imported petroleum products. He revealed that the South Lokichar Basin development project remains on course, with first oil expected in December 2026. Initial production is projected at about 20,000 barrels per day, with the potential to increase to 50,000 barrels per day during subsequent development phases. 

According to Birik, the project represents a major milestone in unlocking the value of Kenya's petroleum resources, strengthening energy security, and creating opportunities for economic growth.

On clean energy initiatives, he highlighted government measures to make liquefied petroleum gas (LPG) more affordable. He noted that the removal of Value Added Tax (VAT) on LPG has helped lower retail prices for consumers by allowing suppliers to recover costs more efficiently. 

He also cited the GasYetu Clean Cooking Programme, under which subsidised six-kilogramme LPG starter kits comprising a pre-filled cylinder, burner and grill are being distributed to low-income households at KSh1,500. He noted that the same package would cost approximately KSh5,500 in the open market.

Birik further said the government, through the National LPG Growth Strategy, is installing bulk LPG systems in more than 11,000 public boarding schools and technical and vocational training institutions. The initiative is expected to reduce dependence on firewood and charcoal while expanding access to cleaner, safer and more efficient energy sources.

He emphasised that as Kenya's economy continues to grow, there is a need to plan for rising demand for reliable and affordable energy to support manufacturing and heavy industries. The government is therefore exploring the potential of local energy resources, including coal deposits in the Mui Basin in Kitui County, to support industrial development and reduce dependence on imported coal.

Birik called for continued collaboration among stakeholders to build a resilient, competitive and sustainable energy sector capable of supporting the country's industries and securing Kenya's energy future.