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Originally published by Capital Business
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business
April 1, 2026
2h ago

Kenyans to wait longer for cheap gas as Saudi firm deal collapses

Kenyans to wait longer for cheap gas as Saudi firm deal collapses

Energy Cabinet Secretary Opiyo Wandayi told the Senate Energy Committee that the government failed to reach an agreement with Saudi Aramco, dealing a blow to efforts aimed at expanding the country’s liquefied petroleum gas infrastructure. Kenya breaking news | Kenya news today ..

✨ Key Highlights

A crucial deal between the Kenyan government and Saudi Arabian firm Saudi Aramco to supply cheaper cooking gas has collapsed, delaying plans to expand the country's liquefied petroleum gas (LPG) infrastructure and lower prices.

  • The proposed $20 million (Sh2.5 billion) financing package from Saudi Aramco was rejected due to untenable conditionalities, including exclusive supply rights.
  • Energy Cabinet Secretary Opiyo Wandayi confirmed the Memorandum of Understanding was not signed due to disagreements over key terms.
  • The Kenyan government is now seeking private investors and has identified four local firms for cylinder manufacturing to salvage its LPG expansion program.

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