National Oil Corporation of Kenya has signed a Memorandum of Understanding with CFAO Kenya Limited (a Toyota Tshusho Group Company) and National Housing Corporation (NHC) to implement LPG reticulation for NHC residential units.
The project will kick off with NHC’s 75 residential apartments located in Nairobi’s South B estate.
The units are expected to be fully reticulated by end of December 2019 before being rolled out to other areas.
An LPG reticulation system involves distribution of LPG to several housing units through piping which sees multiple customers served from one centralized bulk storage tank.
This is not only a cost effective option for consumers as they do not each have to invest in an LPG cylinder but also ensures safety through centralization of the LPG storage unit which makes it easy to isolate and shut off gas supply in case of an emergency.
In addition, customers enjoy the peace of mind of knowing that their LPG will not run out as they cook as is the case with supply through cylinders.
In this partnership, National Oil will supply the bulk gas under its LPG brand SupaGas and provide technical personnel to oversee the setup of the reticulation.
CFAO Kenya will set up the reticulation infrastructure while NHC will provide access to its housing units.
This is a key milestone in support of the President’s Big Four agenda on affordable housing a key feature of which is reticulation technologies for the housing units.
Speaking during the MOU signing event, National Oil CEO MaryJane Mwangi expressed optimism that the project will be a game changer on safe use of LPG in the country.
“Gas reticulation is a practice done in other countries globally particularly in the western world. It ensures safety in cooking and handling of gas besides convenience to customers who are only billed for the exact quantity of gas they use. Through this project our customers will enjoy convenience and assurance of having cooking gas available in their kitchens at all times regardless of time or season.” Said Ms. Mwangi.
“We are also very excited about the impact this project will have on the affordable housing agenda being undertaken under the President’s Big Four Agenda which is encouraging LPG reticulation in housing units. We further expect that this project will support our efforts to firmly cement National Oil as a gas focused company with a large share of the LPG market in Kenya in line with the company’s 15 year transformation agenda”.
The project also underpins the Corporation’s objective of increasing the consumption of LPG as the preferred cooking fuel and enabling Kenyans to make the transition from use of firewood, charcoal and kerosene.
Despite their negative impact on the environment, these fuels are a key contributor to domestic indoor pollution which is one of the leading cause of morbidity rates among both children and adults in Kenya as well as mortality rates among children below five years.
The Government has in the recent past expressed the need to enhance LPG penetration in the country through addressing various entry barriers that hinder Kenyans from accessing LPG.
With only about 15% of Kenya’s approximately 10M households using LPG, the country’s LPG per capita consumption is below smaller economies such as Ghana, Senegal and Ivory Coast.