President William Ruto has announced that the government will implement a subsidy on gas cylinder prices starting from the upcoming fiscal year, with the goal of promoting the adoption of clean energy throughout the nation.
During the Women Enterprise Fund relaunch, the President announced that the government will eliminate all taxes on cooking gas, including the 8% Value Added Tax. Additionally, the government will provide subsidies for the 6kg gas cylinder, resulting in a projected reduction in the price of at least 80%.
“We will remove taxes on gas. The 8pc collected by the government as taxes will be removed in order to bring down the cost of cooking gas to ensure more people are using cooking gas. Today you buy a gas cylinder at KES 2,800. We will allocate money to reduce the price of a 6kg gas from KES 2,800 to between KES 500 and KES 300.” President William Ruto said.
President Ruto mentioned that the government intends to introduce a subsidy program to reduce the price of new cooking gas cylinders, which will benefit consumers by bringing prices down to at least KES 300.
He emphasized that this move will help to address health complications faced by women, who make up 99% of the 70% of Kenyans currently using wood fuels for cooking.
Additionally, the Interior Ministry has been directed to register LPG refillers in order to eliminate illegal enterprises.