Kenyan homes will for the first time since July 2023, buy cooking gas at cheaper prices following the removal of an 8 per cent Value Added Tax (VAT) on the vital product.
In the latest pricing rates, a 13-kilogram Liquefied Petroleum Gas is retailing between Ksh2,800 to Ksh3,200, depending on the location and the product brand.
At the same time, 6-kilogram cooking gas is going for between Ksh890 to Ksh1,060, also subject to other market factors, including distance from the depot.
Previously, traders were selling 3-kilogram cooking gas at around Ksh1,350 and Ksh3,300 for 13-kilogram LPG. These were the lowest prices in the market.
Speaking on the matter, Energy Petroleum Regulatory Authority (EPRA) Director-General Daniel Kiptoo explained that the prices will even go down further as companies continue to re-stock and bring in more products.
“The cost of refiling gas cylinders has gone down mainly due to the removal of taxes,” EPRA Director-General Daniel Kiptoo told journalists.
The new prices are based on the provisions of Finance Act 2023, which exempted cooking gas from the 8 per cent Value Added Tax (VAT) and other levies which had previously made it too expensive for ordinary homes.
Finance Act 2023 also removed the 3.5 per cent Import Declaration Fees and the 2.0 percent Railway Development Levy on cooking gas, a promise that President William Ruto seems to have kept and fulfilled.
"The rate of tax shall be in the case of a zero-rated supply, in the case of the supply of liquefied petroleum gas including propane," Finance Act 2023 read in parts.
On Friday, February 24, President Ruto pledged that his administration would ensure that every Kenyan household has access to cooking gas by making it affordable.
"Every Kenyan household will have access to cooking gas, and we will ensure that gas prices reduce by removing all taxes on cooking gas.
"So that we can make sure that every household in the republic of Kenya has access to gas for cooking and we can eliminate the use of wood fuel, the challenges of health and also restore our environment," Ruto stated.
Speaking during the launch of the Women Fund at KICC on Thursday, March 2, Ruto also announced that the prices of the 6kg gas cylinder will be reduced from Ksh 2,800 to Ksh300 as Finance Act 2023 kicked off.
"Currently, a 6kg cylinder costs about Ksh2,800, and with the subsidy, the price will fall to about Ksh500 in the next financial year beginning July this year.
"I have stated that from the month of June, we will put plans in place to ensure that women use clean energy. The first thing that we will do is remove the tax on gas. That 8 per cent the government takes will be removed to allow more Kenyans to have gas," he stated.
