The Kenyan Ministry of Energy will buy approximately one million new cooking gas cylinders for distribution to underprivileged homes.
The cylinders, dubbed Gas Yetu, will be distributed to the poor across the country by state-owned National Oil, according to the Daily Nation.
Under the scheme, which is said to have been piloted in Machakos and Kajiado counties, government will subsidise cooking accessories at a discounted price of Sh2,000 ($19) per unit, down from about Sh5,000 ($48).
Through this project, government seeks to cut reliance on kerosene and charcoal.
National Oil’s chief executive officer, MaryJane Mwangi, said, “This campaign is meant to increase the uptake of cooking gas by low-income households.”
Budget for cooking gas
It is reported that the Treasury initially allocated the energy ministry Sh2.2 billion ($19 million) for the programme and later added it Sh700 million ($7 million) in a mini-budget.
Furthermore, in July 2016, the Treasury scrapped value added tax (VAT) on cooking gas to cut costs and boost uptake, but poor households have continued to find the prices prohibitive.
According to the Daily Nation, gas has become the preferred energy source for households that can afford it in major towns, due to its convenience and also because it is cleaner than other cooking fuels.
The VAT removal on cooking gas was part of the government’s plan to deter rural homes off reliance on firewood, kerosene and charcoal.
Access to clean cooking access
Sustainable Energy for All (SE4ALL) together with partners including the African Development Bank, recently issued a comprehensive report, which charts finance flows for energy access and clean cooking.
The Energizing Finance report reveals that the current flow of finance for energy access and clean cooking will not achieve global goals for delivering universal access by 2030 in Africa and Asia. Read more…
Across the 20 countries with the largest clean cooking access gaps representing 84% of the global population without access, annual finance committed averaged about $32 million, compared to the estimated annual investment need of at least $4.4 billion.
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