Why Cooking Gas Prices Are High

The cost of cooking gas is currently at Ksh200 per kg, representing a 17% increase compared to 2016, when prices were Ksh166 per kg.

According to a report by the Energy and Petroleum Regulatory Authority (EPRA), Kenyans are paying more for cooking gas due to limited competition in the importation of Liquid Petroleum Gas (LPG).

EPRA noted that the absence of an Open Tender System for LPG importation has contributed to the rise in cooking gas prices, as only a few dealers are importing the commodity into the country.

“The lack of an LPG open-tender system is also a major cost determinant, as evidenced by the landing costs, which average approximately 60% of total retail prices.”

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The lack of competition has led dealers to overcharge consumers and earn excessively high profits.

“These high prices are attributed to the disproportionately high margins earned by LPG dealers, distributors, and retailers, which represent approximately 32% of the total price,” said a statement from EPRA.

EPRA recommends reinstating the Open Tender System for LPG imports, which is expected to reduce the price of cooking gas significantly, making it more affordable for Kenyans.

The report also noted that other factors, such as the initial cost of cylinders and complementary stoves, could contribute to the low volumes of imported LPG.

“Other factors affecting the affordability of LPG include the initial cost of cylinders and complementary stoves, as well as inadequate inland storage, which results in the importation of uneconomically low volumes.”

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Prices of Maize Flour to Reduce

Maize flour prices are expected to decrease due to a high maize harvest this season, according to the Cabinet Secretary for Agriculture, Dr. Andrew Karanja.

Speaking in Kitale, Trans Nzoia County on Friday August 30, the CS attributed the high maize yield to the distribution of government-subsidised fertiliser and favourable climatic conditions.

He further stated that the country anticipates a harvest of 70 million bags of maize.

“We anticipate realising 70 million bags of maize, compared to between 40 and 60 million bags last season, signalling a major boost towards attaining food security,” said Dr. Karanja.

With the price of a 2 kg packet currently at Ksh120, prices are likely to decrease in the coming days.

This increase in maize harvest follows President William Ruto's announcement of an ambitious plan to end Kenya's reliance on maize imports by 2025.

"We are going to invest in production. By next year, we will not be importing a grain of maize. We will move on to rice, wheat, and in five years, the one billion dollars we use on the importation of edible oils," said President Ruto.

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