The Cabinet has ratified a plan that will require Kenyan households to install Liquified Petroleum Gas (LPG) pipes and taps as part of building designs before they can gain government approval for housing projects. This initiative aims to promote the use of LPG, reduce consumer prices, enhance public safety, and contribute to public health and environmental sustainability.
One of the significant concerns addressed by this policy is the current heavy reliance on inefficient and polluting biomass and kerosene for cooking in Kenya. It’s estimated that 70 percent of Kenyans use these traditional fuels, which can have adverse effects on both health and the environment.
President Ruto’s earlier promise to reduce the prices of LPG by nearly half aligns with this move. In April, the government had announced plans to lobby for the removal of three taxes that contribute to the high cost of LPG. These taxes include the 8 percent Value Added Tax (VAT), the 3.5 percent Import Declaration Fees, and the 2 percent Railway Development Levy.
Additionally, during the Cabinet meeting, there was a significant decision to write off a Ksh117 billion debt owed by public sugar mills to the government. This decision comes after approval from Parliament, and it’s expected to provide relief to these mills. Treasury is also working on waiving tax penalties and interest within 30 days.
Furthermore, the government is planning to announce a timeline for paying farmers’ arrears within the next three months. This is a significant development for the agricultural sector, as it will provide much-needed support to farmers.
In line with these changes, the government is also working on proposals for leasing five state-owned sugar mills. This move is expected to bring in new opportunities and investments into the sugar industry.
Overall, these decisions by the Cabinet in Kenya represent a significant shift towards cleaner and more efficient energy sources for households and the agricultural sector. They also demonstrate the government’s commitment to supporting various industries and improving the lives of Kenyan citizens. We’ll keep you updated as these initiatives progress.