State seeks Sh2.5bn for LPG for public schools

The State Department for Petroleum is seeking to spend Sh2.5 billion from the fuel anti-adulteration levy for the construction of gas facilities in at least 7,000 schools and public institutions, starting with between 300 and 500 this financial year.

Petroleum Principal Secretary Mohammed Liban told the National Assembly's committee on Energy that he has written to the Treasury to allow for the use of the levy for the construction of Liquified Petroleum Gas (LPG) in public schools, health facilities, prisons, and the National Youth Service (NYS).

The law requires payment of the anti-adulteration levy on all illuminating kerosene imported into the country for home use.

The levy was introduced through the Finance Act, of 2018 following an amendment to the Miscellaneous Fees and Levies Act of 2016.

The law sets the levy at the rate of Sh18 per litre of the customs value of the illuminating kerosene and shall be paid by the importer at the time of entering the kerosene into the country.

The levy is aimed at protecting motorists from rogue fuel dealers who were taking advantage of the huge gap in the price of diesel and kerosene to adulterate diesel.

The difference in the prices was primarily caused by the fact that kerosene was excluded from the road maintenance levy, which is charged at Sh18 for each litre of petrol and diesel.

Mr Liban told the committee chaired by Mwala MP Vincent Musyoka that he has written to the Treasury seeking authority to spend the Sh2.5 billion annual collection from the levy for installation of LPG facilities in public schools and institutions.

"The Treasury said this will require some legislation for us to get that money," Mr Liban said.

“We are seeking this committee intervention to have this money redirected for construction of LPG.”

Mr Liban told the committee that the Ministry has already mapped out 7,000 public schools that have expressed interest to be fitted with LPG.

"Over 7,000 schools have expressed interest. Nearly 70 percent of these schools use firewood for cooking," Mr Liban said.

"Our strategy is to start with public schools then public institutions, hospitals prisons, and NYS."

Mr Liban said the Ministry would only construct LPG facilities in 300 to 500 schools annually with the budgetary allocation for the financial year 2024/25.

"For schools, we have already started piloting the project. We are also looking at a partner to help us achieve this goal of connecting all public institutions to LPG," Mr Liban said.

Mr Liban told the MPs three sub-committees had been formed to ensure safety and security for the implementation of gas for schools project.

He said he chairs the technical committee that is assessing the safety and security issues.

The committee, he said, comprises officials from the Ministry of Education, Energy and Petroleum Regulatory Authority, National Environment and Management Authority, and the Kenya Bureau of Standards.

Mr Liban said the Ministry has advertised for procurement of the LPG for public institutions and Nema is undertaking an Environmental Impact Assessment to ensure the safety of the LPG facilities.

"LPG will be an alternative to mattresses which students burn when there is a riot. We will have a parameter fence on these facilities to ensure students don't access it," he said.

"We will also undertake education and sensitive the students and the school management on the safety and security issues," Mr Liban said.

The Energy Committee had in 2023/24 budget estimates recommended that the proceeds of the anti-adulteration levy be channeled towards the construction of LPG facilities in public institutions.

The committee directed the Treasury to present the status of the implementation of the House resolution to transfer the anti-adulteration levy towards LPG.

President William Ruto last year directed all public schools and public institutions to ditch firewood and other fuels for LPG by 2025.

Mr Libansaid the three-year plan will also include regulating cooking gas prices to stabilise the market and reduce the usage of dirtier fuels that harm the environment while worsening the disease burden.

The State Department for Petroleum said the plan has not taken off as envisaged due to budgetary constraints.

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