Cost Of Energy In Kenya Set To Drop Following Deal With Tanzania

The cost of energy in Kenya is expected to soon significantly reduce as the country is set to import natural gas from neighbouring Tanzania.

This is following a recent bilateral trade agreement by the two countries that will see the construction of a natural gas pipeline from Dar es Salaam, Tanzania to Mombasa, Kenya.

The deal was further cemented following a recent two-day visit by President William Ruto that saw him negotiate with his Tanzanian counterpart Samia Suluhu Hassan.

In  2021, Kenya and Tanzania agreed on the gas pipeline, and the two heads of state affirmed their commitment to fully implementing it.

President William Ruto with Tanzania’s Samia Suluhu at State House Dar Es Salaam on October 10, 2022.

The projected natural gas pipeline will cover about 600 kilometres between Mombasa and Dar es Salaam, a plan financed by Public-Private partners costing Ksh1.1 billion with Kenya majorly involved.

Tanzania ranks at position 71 globally in the production of natural gas, producing 39,199.65 million cubic feet of natural gas per year and only consuming 109,500 million cubic feet.

This is one of the reasons that has forced Kenya to make the deal of exporting its natural gas from Tanzania to curb the high cost of electricity and cooking gas in the country.

Paralyzed economy

High gas prices were caused by the Covid-19 pandemic that paralyzed the economy which is still struggling even today.

In his inauguration speech, President William Ruto promised to bring down the cost of energy by adopting the use of renewable energy that will drive attract private sectors and other stakeholders in the energy sector.

President William Ruto at a past event.

Kenya is on a transition to clean energy that will support jobs, local economies, and sustainable industrialisation. We call on all African states to join us in this journey. Africa can lead the world. We have immense potential for renewable energy. Reducing costs of renewable energy technologies make this the most viable energy source,” Ruto said on September 13, 2022.

Currently, the prices for refilling cooking gas in Kenya are high with a 6-kilogram gas cylinder costing Khs1,540, 13kg (Ksh3,330) 22.5kg (Ksh5,580) and a 50kg gas cylinder costing Ksh12,260 to refill.

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