Kenya Energy Liquified Petroleum Gas

Kenya has committed to achieving Universal Access to Modern Energy Cooking Services by 2030, with LPG accounting for 35% of the total mix. LPG, specified at 85% butane and 15% propane, is mainly for commercial and industrial use, as well as a domestic cooking fuel.   Currently, Kenya imports 100% of its LPG, amounting to 371,000 metric tons in 2021, with the bulk coming from the United States. In 2021, these imports were valued at $111 million for butane and $25 million for propane. 

Kenya plans to construct a 30,000-ton liquefied petroleum gas (LPG) handling and storage facility at a cost of $129 million in Mombasa, the latest effort by the Government of Kenya (GoK) to the reduce cost and increase use of the clean burning oil among lower income Kenyans. These and other recent developments point to growing demand for LPG in Kenya with estimated year-on-year growth of 14% for the coming few years. 

The price of LPG has continued to rise in Kenya due to the depreciation of the local currency, rising demand, and inefficient distribution systems. Increasing storage and handling facilities, as well as providing tax incentives and exemptions, are some of the avenues the GoK is using to address this challenge and increase consumption.  The expected growth in demand for LPG should create an opportunity for increased US exports of both butane and propane, and we encourage US firms in this sector to explore the Kenyan market.  

For more information regarding opportunities for U.S. companies in this sector, please contact Mary Masyuko, Senior Commercial Specialist, Mary.Masyuko@trade.gov.