The government has revived its subsidised gas cylinder distribution programme, seven years after a similar initiative collapsed.
In a public advertisement published in the September 9 edition of MyGov, the Ministry of Energy and Petroleum, through the State Department for Petroleum, invited credible companies to submit Expressions of Interest (EOI) for financing, purchasing, and distributing 6kg Liquefied Petroleum Gas (LPG) cylinders with seed gas and accessories.
The project aims to expand LPG adoption in all 47 counties, focusing on rural and peri-urban households that still rely heavily on firewood and kerosene.
The programme falls under the Bottom-up Economic Transformation Agenda (BETA), which has affordable, clean cooking energy as a priority for social welfare and environmental sustainability.
Shared Financing Model
Under the proposed financing structure, the government will pay 40 per cent of the cost of each manufactured cylinder, including seed gas and accessories. Private sector players, mainly LPG marketing companies, will contribute another 40 per cent, while consumers will provide the remaining 20 per cent as a deposit.
“The LPG cylinders will be manufactured locally and fitted with track-and-trace technology under the supervision of the Energy and Petroleum Regulatory Authority (EPRA),” reads part of the notice.
Role of Private Firms
The government will designate successful LPG marketing firms as brand owners, assigning them the responsibility of refilling and maintaining cylinders in line with the Petroleum (LPG) Regulations, 2025. These firms must also supply burners and grills to ensure households receive complete starter kits.
To support local production and create jobs, the government has committed to prequalifying local manufacturers and sharing their details with the selected firms. By combining a tripartite funding model with stronger regulatory oversight, the State Department for Petroleum aims to avoid past mistakes and scale up LPG use nationwide.
Interested distribution firms must submit their proposals by Tuesday, September 23, 2025, at 11 a.m. at the Ministry’s offices in KASNEB Towers II, Nairobi. “Late submissions will not be accepted,” the notice further warns.
Separate Tender for Manufacturers
At the same time, the State Department has issued a separate tender for the manufacturing of the 6kg cylinders. Reputable firms or consortia must demonstrate technical capacity, equipment, facilities, and relevant experience in line with Kenyan Standards.
The government says this dual tender approach – one for distribution and another for production – will strengthen local industries, create jobs, and ensure quality control across the supply chain.
Successful manufacturers will also operate under the same financing framework, with costs shared between the government, private sector, and consumers.
“By involving both local manufacturers and private distributors, we are strengthening the supply chain and making clean cooking energy more accessible and sustainable,” reads the notice.
Interested manufacturing firms have the same submission deadline: Tuesday, September 23, 2025, at 11 a.m.
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