President William Ruto on Monday, October 11 said the 600-kilometre pipeline that Kenya will use to import gas from the Mtwara plant in Tanzania is a priority item.
The pronouncement by the head of state is set to end a delay of over one year.
Moreover, the pipeline is part of the Memorandum of Understanding on Cooperation in Natural Gas Transportation that former President Uhuru Kenyatta signed with Tanzanian President Samia Suluhu in May 2021.
It has an estimated value of Ksh132 billion ($1.1 billion).
Furthermore, importing gas from Tanzania will provide Kenya with an alternative to lower the cost of cooking gas.
“We will expedite the gas pipeline from Dar es Salaam to Mombasa and eventually to Nairobi so that we can use the resources that we have in to lower energy tariffs both for commercial and domestic use in Kenya,” president Ruto stated.
The head of state further added that the government of Kenya will ensure they do what is required in a timely, efficient and effective manner so as to access the gas resources in Tanzania in the shortest time possible.
Additionally, upon its completion, the project which is to be funded through Public Private Partnership (PPP) will allow Kenya to tap the vast natural gas deposits of Tanzania and lower the cost of cooking gas and electricity prices.
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Moreover, the price of a 13-kilogramme cooking gas now goes for Sh3,400 while the six-kilogramme one now goes for Sh1,500 at the back of global rally in crude prices and the re-introduction of the six percent Value Added Tax on the commodity.
Likewise, Kenya re-introduced 16 percent VAT on cooking gas in July 2021 and in addition to the global jump in cost of crude, the country welcomed a surge in prices of the commodity.
However, the tax was halved this year after a public uproar but oil marketers have failed to pass on the tax reduction to consumers.
Furthermore, unlike diesel, super and kerosene, prices of cooking gas are not controlled by the State, therefore, leaving consumers at the mercy of oil dealers.