The Government has removed the tax on liquefied petroleum gas (LPG), commonly known as cooking gas.
This came after President Uhuru Kenyatta assented to the Finance Bill 2016, which among others regulate taxation measures in respect of gaming, betting and competition.
The move is meant to increase the number of Kenyans using clean energy and reduce the cost of living.
In Kenya, LPG is commonly used in urban areas, with Nairobi accounting for 60 per cent of the market and Mombasa 15 per cent while the rest is scattered around other growing urban centres with only one per cent usage in rural areas.
This is largely driven by a low availability of firewood in urban centres, and ease of LPG distribution due to the greater population density.
Analysts argue that improvement across the LPG value chain need to be made to bring down the cost, create awareness among consumers and increase distribution efficiency to reach majority of Kenyans.
Currently, LPG in Kenya is supplied in Gas Cylinder in 6kg, 13kg, 35kg, 50kg capacities under the major oil companies.