Energy Cabinet Secretary Opiyo Wandayi has been taken to task by Senators to explain why the plan by the Kenya Pipeline Company to develop the cooking gas handling facility in Mombasa was quashed and the project handed over to Asharami Synergy which is a subsidiary of Sahara Group in Nigeria.
Wandayi who was responding to concerns raised by Busia Senator Okiya Omtatah said the execution of the cooking gas handling facility in Mombasa by way of lease arrangement to the private sector is expressly provided for in the Cabinet directive on the implementation of the National LPG growth strategy.
The Cabinet Secretary said that following engagements between the Ministry of Energy and the National Treasury on the construction of Bulk importation, storage and handling facilities for LPG in Mombasa, the ministry was advised to explore private sector participation to implement the project.
“The Cabinet Secretary should explain the process of selection of a company to develop the gas handling facility including details of all received proposals as well as justification for contracting Asharami Synergy to construct and operate the facility on a 31-year lease,” asked Omtatah.
Wandayi told Senators that the company was selected through the specially permitted procurement procedure with Kenya Petroleum Refineries Limited approved by the National Treasury and Economic Planning to use the Specially Permitted Procurement Procedure as provided in section 114 A
The Cabinet Secretary said that six bidders, Total Energies Limited, Rubis Energy Kenya Limited, Galana Energies Limited, Gulf Energy Limited, Vivo Energy Limited, and Asharami Synergy Limited, were invited to submit their proposals.
Wandayi said that only two bids were received from Gulf Energy Limited and Asharami Synergy and following an evaluation process, Asharami Synergy Limited was responsive to the bid and therefore evaluated the tender.
Omtatah asked Wandayi to tell Senators whether Kenya Petroleum Refineries Limited followed the law and the laid down procedure in leasing the 23.19 acres of public land on which the facility lies to Asharami Synergy Limited.
“The law was followed in leasing the 23.19 acres of public land, with the approval sought granted in line with established procedures which was done by the National Treasury Circular Number 1 of 2025 on requirements for seeking approval to lease public assets,” said Wandayi.
He told Senators that the approval granted for the lease of the land was done through a strategic directive from Kenya Pipeline Company, the Kenya Petroleum Refineries Limited board, The Head of Public Service, the National Land Commission, the Office of the Attorney General and the National Treasury.
Omtatah asked Wandayi to explain how Kenya Pipeline Company intends to recover Sh 192.64 million in taxpayer’s money brought out during the Auditor Generals review of the company results for the year ending June 2024 that was used in undertaking studies including demand survey, environmental and social impact assessment, front end engineering designs and the estimated cost of the project.
Wandayi said that the agreement has a yield up provisions for where the facilities shall revert to the government of Kenya through Kenya Pipeline Company and Kenya Petroleum Refineries Limited and that the two-state agencies and Asharami are yet to meet to discuss the modalities of sharing Information.
