Tuesday, December 17, 2024 – The gas business may face significant changes after President William Ruto announced sweeping reforms in the procurement of Kenya's Liquefied Petroleum Gas (LPG).
Speaking during the commissioning of the
Liquefied Petroleum Gas Programme for public institutions at Jamhuri High
School in Nairobi, Ruto announced that the government will use the open tender
system for procurement of its gas products.
According to the Head of State, the decision
to move to the Open Tender System (OTS), will enable consumers of gas
products to access them at cheaper prices.
He noted that the directive is part of the
ongoing government efforts to reduce carbon impacts from the use of fossil
fuels.
''Going into the future, we will transition
the purchase of gas in Kenya to an open tender mechanism (OTS),'' Ruto
announced.
''We will have an OTS that is going to support
the purchase of gas competitively so that we can get competitive prices and we
can leverage on the scale that we have as a country,'' he added.
Consequently, the President has announced that
the government will work closely with the private sector to establish a common
user import facility.
The above announcement means that more private
sector players who would want to engage in the importation of gas products will
not have to worry about the headache of storage facilities.
According to Ruto, the directive will now mean
that the LPG sector procurement will run the same as the petroleum products
tendering system.
Initially, the OTS was only used for the
importation of petroleum products such as diesel, petrol, and kerosene.
Since ascending into office, Ruto has been
keen on reversing key procurement strategies used by previous
governments.
The Kenyan DAILY POST
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