Cooking gas consumption defies steep prices

Cooking gas consumption grew by more than 10 percent, or 24.3 thousand tonnes, in the six months to June 2026, despite higher prices of the commodity.

Official data shows that consumers used 248.82 thousand tonnes of Liquefied Petroleum Gas (LPG) in the half-year to June, compared with 224.52 thousand tonnes in the same period of 2025—marking a 10.82 percent increase.

Demand remains resilient despite higher prices and affordability pressures among many consumers. The higher consumption came even as LPG costs rose sharply amid disruptions linked to the US-Israel war against Iran.

For instance, the price of a 13-kilogramme (kg) cylinder of cooking gas rose by Sh360 in April this year, to retail at an average of Sh3,500 in May compared with Sh3,140 in January, while prices of the six-kg cylinder rose to Sh1,600 from Sh1,350 over the same period.

The steep LPG prices were expected to hit demand, especially among low-income households most vulnerable to economic shocks. Local LPG wholesalers said the conflict triggered higher costs across the supply chain and increased the landed cost of LPG in Kenya, prompting price increases.

Unlike petrol, diesel and kerosene, Kenya does not regulate LPG prices, leaving marketers to set retail prices. Authorities have in the recent past accused dealers of denying consumers the benefits of tax breaks gazetted in 2023 in a bid to lower LPG prices and spur its use as the preferred cooking fuel.

Parliament exempted LPG from VAT, the 3.5 percent Import Declaration Fee and the two percent Railway Development Levy three years ago.

The Energy and Petroleum Regulatory Authority (Epra) attributes the increase in LPG consumption to policy interventions under the government-backed National LPG Growth Strategy, which targets wider adoption in households and public institutions, alongside growing awareness of its health, environmental and economic benefits.

Under the policy, the State has been promoting LPG use in public institutions such as schools, hospitals and prisons, segments that consume large volumes of cooking energy and offer a scalable pathway for demand expansion.

“The national LPG growth strategy is expected to further accelerate adoption, particularly in public institutions such as schools, hospitals, and prisons,” said the regulatory body.

The government is also banking on increased private and public players in the LPG importation sector to help bring down the gate prices of cooking gas at the port of Mombasa and pass the savings to consumers.

Lake Gas and Taifa Gas are the latest entrants into an importation space that had for decades been dominated by African Gas and Oil Limited (AGOL). Lake Gas, part of the Lake Group, started importing LPG via its 10,000-tonne-capacity terminal at Vipingo, Kilifi County, last year. Another player, Taifa Gas, is set to commission its 25,000-tonne terminal in Dongo Kundu later this year.

The two facilities are expected to increase competition in a market where AGOL has been a major player for decades through its 25,000-tonne-capacity facility in Shimanzi, Mombasa County.

Follow our WhatsApp channel for breaking news updates and more stories like this.