– Business, Finance, Markets & Economic News
  • Home
  • Economy
  • Business
  • Markets
  • Finance
  • Credit Ratings
  • Policy
  • Tech
– Business, Finance, Markets & Economic News
  • Home
  • Economy
  • Business
  • Markets
  • Finance
  • Credit Ratings
  • Policy
  • Tech
Top News
African Union Names Sifiso Falala Interim CEO of New Continental Credit Rating Agency
AU Officially Launches AfCRA to Strengthen Africa’s Credit Rating Architecture
Kenya Central Bank Holds Key Interest Rate at 8.75% Amid Rising Inflation
South Africa Prioritizes 9.6 GW of Battery Storage and Gas Power in Energy Plan
Ghana’s Inflation Rises to 5.2% in September as Domestic Services Drive Prices
Kenya Signs $3 Billion MoU for Electric Vehicle Manufacturing and Charging Network
Zimbabwe’s Mutapa Platinum Secures $100 Million to Restart Darwendale Project
Uganda Approves Domestic Investor Access to Dangote Refinery’s $1.6 Billion IPO
Tanzania Renews Barrick’s North Mara Mining License for Another 15 Years
Congo Launches Nationwide Geological Mapping Programme to Unlock New Mineral Resources
World Bank Raises Africa’s 2026 Growth Forecast to 4.3%, Calls for AI Investment
Ethiopia Allocates $840 Million for Foreign Exchange Auctions in Second Quarter
Zambia to Sign $1.5 Billion U.S. Health Funding Pact After Data Dispute
Afreximbank to Finalize $1.3 Billion Financing for Angola’s Amufert Fertilizer Plant
Egypt’s Non-Oil Private Sector Contracts Sharply as PMI Falls to 47.2
SUBSCRIBE
– Business, Finance, Markets & Economic News
Subscribe
– Business, Finance, Markets & Economic News
  • Home
  • Economy
  • Business
  • Markets
  • Finance
  • Credit Ratings
  • Policy
  • Tech
Copyright 2026 - All Right Reserved
Home » Energy » Kenya-Aramco LPG Deal Falls Through, Derailing Plan to Expand Cheap Cooking Gas Access
Energy

Kenya-Aramco LPG Deal Falls Through, Derailing Plan to Expand Cheap Cooking Gas Access

by Oluebube Elechi April 1, 2026
written by Oluebube Elechi April 1, 2026
FacebookTwitterLinkedinEmail
148

NAIROBI, April 1 – Kenya’s efforts to lower the cost of cooking gas have suffered a setback after negotiations with Saudi oil giant Aramco collapsed, halting a planned expansion of the country’s liquefied petroleum gas (LPG) infrastructure.

Energy Cabinet Secretary Opiyo Wandayi told the Senate Energy Committee that a proposed Memorandum of Understanding with Aramco Trading Fujairah FZE was not finalised due to disagreements over key terms.

According to him, both parties failed to reach a compromise, leading to the breakdown of talks.

The deal was expected to support the rollout of about 8.4 million LPG cylinders under a Saudi-backed Oil Sustainability Program. It also included a $20 million (KSh2.5 billion) funding package.

You Might Be Interested In
  • Nigeria NNPC Invites Bids for First Cargo of New Cawthorne Crude

However, the government declined the offer after it came with conditions such as exclusive LPG supply rights and phased disbursement terms, which officials described as impractical.

The collapse means a key part of Kenya’s plan to expand access to cleaner and more affordable cooking fuel will not proceed as initially outlined.

The initiative was tied to broader efforts to stabilise prices and deliver on a 2023 pledge to reduce the cost of a 6kg gas cylinder.

Despite the setback, the government says it is exploring alternative options. Authorities have shifted focus toward private sector participation, with requests for proposals already issued and four local firms shortlisted to support cylinder manufacturing.

At the same time, concerns persist within the domestic market. Lawmakers raised issues around the dominance of multinational firms and complaints from small-scale petroleum dealers. The Energy Ministry says it is reviewing allocation quotas and strengthening oversight.

Kenya has, however, expanded its LPG storage capacity since 2022 and continues to rely on existing supply agreements with Gulf-based firms to maintain short-term availability.

Read Next

  • Uganda Lowers Economic Growth Forecast Ahead of Crude Oil Production

    January 30, 2026
  • World Bank Backs Morocco with $650 Million for Digital Economy and Climate Risk Programs

    June 15, 2026
  • Egypt Net Foreign Assets Rise to Record $29.5 Billion in January

    March 2, 2026
  • Uber to Shut Down Ride-Hailing Operations in Nigeria and Uganda as Global Restructuring Continues

    September 3, 2026
  • African Rainbow Minerals Half-Year Profit Climbs 10% on Higher Platinum Prices

    March 6, 2026

Newsletter

Subscribe to our newsletter for trusted insights on Africa’s economies, markets, and business.

African Economy Inc. Logo

About Us

We are a business and economic intelligence platform delivering in-depth reporting, analysis, and insights on markets, companies and economic developments across Africa.

Our Company

  • AEI Intelligence
  • About
  • Editorial Standard
  • Partnerships
  • Advertise With Us
  • Careers
  • Ownership

News

  • Economy
  • Business
  • Markets
  • Finance
  • Credit Ratings
  • Policy
  • Tech

Useful Links

  • Privacy Policy
  • Terms of Use
  • Closed Captioning Policy
  • Accessibility Statement
  • Personal Information
  • Data Tracking
  • Register New Account

Subscribe Newsletter

Subscribe to our newsletter for trusted insights on Africa’s economies, markets, and business.

©2026 Majons Media Inc. All Rights Reserved.

Facebook Twitter Instagram Linkedin
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
– Business, Finance, Markets & Economic News
  • Economy
  • Business
  • Markets
  • Banking & Finance
  • Energy
  • Tech
  • Policy
  • African Economy Inc.