A Senate committee has launched a formal inquiry into the controversial handover of a 30,000-metric-tonne Liquefied Petroleum Gas (LPG) storage facility in Mombasa to Nigerian firm Asharami Synergy Ltd.  

The Senate Energy Committee, chaired by Siaya Senator Oburu Oginga, raised concerns about transparency, legality and the sidelining of Kenya Pipeline Company (KPC).

KPC had originally been tasked with developing the project, but was sidelined when it was handed over to Asharami Synergy.

Senators took Energy Cabinet Secretary Opiyo Wandayi to task for why KPC’s plan to develop the cooking gas handling facility in Mombasa was quashed.

Clean energy

The lawmakers questioned why the Ministry of Energy and Petroleum handed the project to Asharami Synergy, a subsidiary of Sahara Group in Nigeria, for 31 years.

The facility, standing on a 23-acre parcel of public land in Changamwe, was intended to be a public-sector initiative aimed at increasing clean energy access and reducing household fuel costs.  

The lawmakers questioned why the ministry bypassed KPC’s mandate under the Companies Act in an opaque procurement process and without public engagement.  

This is after the Auditor General flagged a potential loss of Sh192.6 million already spent by KPC on feasibility studies and engineering designs.

Local communities in Changamwe have written to the Senate, citing land injustices, lack of environmental assessments, and failure by key regulatory bodies like the Energy and Petroleum Regulatory Authority (EPRA) and the National Environment Management Authority (NEMA) to engage the public.  

Busia Senator Okiya Omutatah presented the petition to the Senate on behalf of Changamwe residents.

According to Omtatah, the deal is expressly provided for in the Cabinet directive on the implementation of the National LPG growth strategy.

Omtatah also sought to know how KPC intends to recover Ksh192.64 million in taxpayers’ money.

Wandayi told the committee that the law was followed in leasing the 23.19 acres of public land.

“The approval sought was granted in line with established procedures, which were done in accordance with the National Treasury Circular Number 1 of 2025 on requirements for seeking approval to lease public assets,” said Wandayi.

The committee’s visit to Mombasa has opened up a broader debate on the management of energy infrastructure.  

Wayleave dispute

Mombasa Governor Abdulswamad Nassir criticised Kenya Power for not meeting its financial obligations to counties.

“Kenya Power does not pay wayleaves to the County Government of Mombasa, yet they expect us to pay electricity bills in time, and if we don’t pay, they disconnect us — including disconnecting hospitals.”

“We are coming up with a bill so that Kenya Power does not disconnect electricity in essential facilities like hospitals,” said Dr Oburu.

Danson Mungatana (Tana River) emphasised the need for legal reform to balance the responsibilities between county and national governments.

“What you are saying is what Governor Sakaja has been saying all along — we need to find a solution through amendments to the Energy Act,” said Mungatana.