Senate Probes Controversial LPG Deal in Mombasa
Central to the controversy is the alleged bypassing of KPC’s statutory mandate, an opaque procurement process, and a lack of public consultation.
Senate launches probe into Mombasa LPG facility lease to Nigerian firm amid concerns over transparency and exclusion of Kenya Pipeline Company. Photo/Parliament.
By Robert Assad
The Senate Standing Committee on Energy has opened an inquiry into the controversial leasing of a 30,000-metric-tonne Liquefied Petroleum Gas (LPG) storage facility in Mombasa to Nigerian firm Asharami Synergy Ltd., raising serious concerns over transparency, legality, and the sidelining of the Kenya Pipeline Company (KPC).
The facility, located on 23 acres of public land in Changamwe, was initially envisioned as a public-sector project aimed at expanding clean energy access and cutting household fuel costs.
However, a 31-year lease granted by the Ministry of Energy and Petroleum to Asharami Synergy — a subsidiary of the Sahara Group — has sparked criticism from political leaders, professionals, and local communities.
Central to the controversy is the alleged bypassing of KPC’s statutory mandate, an opaque procurement process, and a lack of public consultation.
The Office of the Auditor General flagged a potential loss of Ksh.192.6 million already spent by KPC on feasibility studies and designs. Local residents in Saragota, Changamwe, have raised alarms over land injustices, inadequate environmental assessments, and the failure of regulatory bodies like EPRA and NEMA to involve the public.
Busia Senator Okiya Omtatah presented a petition on behalf of the affected residents, prompting the Senate committee’s visit to Mombasa.
During the visit, Governor Abdulswamad Sheriff Nassir sharply criticized Kenya Power for not honoring financial obligations to county governments.
“Kenya Power does not pay wayleaves, yet it disconnects electricity, including at hospitals, when counties delay payment,” he said.
In response, Senator Dr. Oburu Oginga announced upcoming legislation to prevent power disconnections in essential facilities such as hospitals.
However, Senator Ogolla pointed out that counties also owe large sums in unpaid bills, calling for balanced accountability.Senator Mungatana called for amendments to the Energy Act to clarify responsibilities between national and county governments.
He also proposed that the national government shoulder costs for street lighting, which he linked to national security.Despite the outcry, the LPG project promises long-term benefits, including a projected 30% reduction in LPG prices, reduced reliance on wood and charcoal, and enhanced revenue for KPC.
Still, critics warn that these gains may be lost without proper oversight and safeguards for public interest.The Senate Committee is expected to present its findings and propose reforms in the coming weeks.
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