In a welcome development for Kenyan households, cooking gas prices have significantly reduced after the removal of an 8 per cent Value Added Tax (VAT) on the essential product. This marks the first time since July 2023 that consumers will benefit from the cost reduction.

The latest pricing rates indicate that a 13-kilogram Liquefied Petroleum Gas (LPG) cylinder is now retailing between Ksh2,800 to Ksh3,200, depending on the location and brand. Similarly, a 6-kilogram cooking gas cylinder is available for purchase at prices ranging from Ksh890 to Ksh1,060, with variations attributed to market factors and the distance from the depot.

Previously, traders were selling the 3-kilogram cooking gas at approximately Ksh1,350, and the 13-kilogram LPG at about Ksh3,300, constituting the lowest prices in the market.

Energy Petroleum Regulatory Authority (EPRA) Director-General Daniel Kiptoo explained that the prices are expected to decrease even further as companies replenish their stocks and import more products. The reduction in the cost of refilling gas cylinders is primarily due to the removal of taxes, including the 8 per cent VAT.

This favorable change in gas prices is a result of the provisions outlined in the Finance Act 2023, which exempted cooking gas from the 8 per cent VAT and other levies that previously made it unaffordable for ordinary households. Furthermore, the Act eliminated the 3.5 per cent Import Declaration Fees and the 2.0 percent Railway Development Levy on cooking gas, fulfilling a promise made by President William Ruto.

The Finance Act 2023 reads, "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."

President Ruto had pledged to ensure that every Kenyan household has access to affordable cooking gas, aiming to eliminate the use of wood fuel and its associated health and environmental challenges. As part of this commitment, he announced plans to remove the 8 per cent tax on gas and subsidize the prices, bringing a 6kg cylinder's cost down from Ksh2,800 to approximately Ksh500 in the next financial year beginning in July.

The government's efforts to make cooking gas more accessible and affordable are aimed at promoting clean energy usage, especially for women in the country. The move is expected to benefit households, reduce environmental pollution, and improve overall public health.