Page 11 - AfrOil Week 30 2022
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AfrOil                                           POLICY                                                AfrOil



       Kenya revives sales of subsidised




       LPG cylinders to poor households






             KENYA       KENYA’S government has revived plans to sell   has pushed up prices of commodities globally.
                         cheap LPG cylinders to poor households, start-  Annual inflation accelerated to 7.9% in June,
                         ing with those in Nairobi, in a bid to increase   the highest level since August 2017, from 7.1%
                         consumption of the clean energy source and   the previous month, according to the National
                         eliminate the use of charcoal and similar pollut-  Bureau of Statistics. The central bank targets
                         ing fuels for cooking.               inflation at 2.5% to 7.5%.
                           National Oil Corp. of Kenya (NOCK) will   Kenya is likely to face increased price pres-
                         sell 6kg cylinders filled with LPG for KES 2,100   sures on food in the coming months due to
                         ($17.67), less than half the market price of KES   reduced maize production stemming from
                         5,100, Tuko reports. Cylinders will have burners   the doubling of fertiliser costs and prolonged
                         with other accessories.              drought, according to a World Food Programme
                           The KES 3bn programme, introduced in   (WFP) study. ™
                         2019 but not implemented widely following the
                         distribution of faulty gas cylinders by fraudulent
                         contractors,  aims to distribute 1.2 mn gas cylin-
                         ders across Kenya annually over six years.
                           NOCK’s CEO Gideon Morintant said the
                         distribution of subsidised cylinders in Nai-
                         robi, starting in August, targets 60,000 poor
                         households.
                           “Plans are underway, and with the help
                         of Ministry of Interior and Coordination of
                         national government, all the beneficiaries will
                         be reached,” he told Business Daily.
                           The government has also announced a
                         reduction in value-added tax (VAT) on LPG
                         from 16% to 8%, a significant amount for many
                         households due to the rising cost of living partly
                         caused by Russia’s invasion of Ukraine, which   The distribution of subsidised LPG cylinders targets 60,000 households (File Photo)



       Ugandan security officials quash



       protests against soaring fuel prices






            UGANDA       POLICE arrested scores of people in Uganda   In Kampala, where protests were expected,
                         on July 25 as security forces used teargas and   the Uganda People’s Defence Forces and police
                         truncheons in Jinja, a major centre on the busy   were deployed in great numbers in a bid to deter
                         highway to the country’s border with Kenya, to   such action.
                         quell protests against soaring petroleum prod-  Police spokesman Fred Enanga alleged that
                         uct prices, which have doubled since the start   opposition politicians were behind the planned
                         of the year.                         protests in the capital, Kampala, but security
                           Televised footage showed police firing tear   agencies were able to prevent an escalation of
                         gas to disperse gathering crowds, while they,   the situation.
                         along with soldiers and other security person-  “The planners of the protests went to
                         nel, clashed with the mainly young protesters,   Kawempe [an area in Kampala] telling shop
                         who threw stones and other projectiles.  attendants to close their businesses today,” the
                           Unrest has manifested in street protests in   Monitor quoted him as saying on July 25. “What
                         different parts of the East African country over   we did was to deploy early in the morning to
                         the rising cost of living.           prevent them from achieving their goal.”



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