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Govt initiates plans to distribute subsidised gas cylinders in all counties

Govt initiates plans to distribute subsidised gas cylinders in all counties
Energy Cabinet Secretary Opiyo Wandayi when he appeared before the energy committee in the Senate. PHOTO/Kenna Claude

The Ministry of Energy and Petroleum, through the State Department for Petroleum, has announced an invitation for Expression of Interest (EoI) from reputable firms and consortia to participate in a large-scale programme for funding, procurement, and distribution of subsidised Liquefied Petroleum Gas (LPG).

In accordance with Tender Number MOEP/SDP/EOI/02/2025-2026, the initiative, which targets all 47 counties, is part of the Government of Kenya’s strategy to expand access to clean cooking energy in rural and peri-urban areas.

Under this scheme, locally manufactured 6 kg LPG cylinders, fitted with modern track-and-trace technology, will be distributed to households at subsidised rates this is in line with President William Ruto’s campaign pledge to lower prices of gas cylinders.

Funding model

According to a notice published on MyGov on Tuesday, September 9, 2025, the financing framework will be a tripartite partnership involving: Government of Kenya (GoK): Covering 40 per cent of the cost of the cylinder, seed gas, and accessories.

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LPG marketing companies: Contributing another 40 per cent of the cost while acting as brand owners responsible for refilling and maintenance, in line with the Petroleum (Liquefied Petroleum Gas) Regulation, 2025.

Consumers: Paying the remaining 20 per cent as a deposit for the cylinder.

Each LPG marketing company will also supply burners and grills to ensure households have complete cooking kits.

Call for interested firms

The ministry has emphasised that interested firms must indicate the counties they plan to cover and provide estimates of cylinder distribution per county. Eligible applicants are expected to demonstrate proven qualifications, capacity, resources, and experience in LPG distribution and financing.

”The GoK intends to distribute the Cylinders to all forty-seven counties with a preference to increasing LPG penetration in the rural and peri-urban areas through these firms. The interested firms are therefore required to indicate the County or Counties and the population of Cylinders County by County.” The Ministry of Energy and Petroleum said in a statement.

Submission guidelines

Detailed Terms of Reference (TOR) and eligibility requirements can be accessed freely on the State Department for Petroleum website.

Applicants are required to submit four hard copies (one original and three copies) and a soft copy in PDF format, enclosed in plain sealed envelopes clearly marked:

“MOEP/SDP/EOI/02/2025-2026: Funding, Procurement and Distribution of Subsidised 6kg Cylinders, Seed Gas and Accessories for Liquefied Petroleum Gas (LPG)”

The submissions should be delivered to the Tender Box at KASNEB Towers II, 7th Floor, or posted to the Principal Secretary, State Department for Petroleum.

Meanwhile, the deadline for submission is 11:00 am, EAT on Tuesday, September 23, 2025. According to the Ministry, late bids will not be considered. The bids will also be opened immediately after the deadline at the State Department for Petroleum Boardroom in the presence of applicants or their representatives.

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