A controversial Sh17.7 billion liquefied petroleum gas (LPG) project in Changamwe, Mombasa, has drawn sharp criticism from lawmakers after it emerged the contract was awarded to Nigerian firm Asharami Synergy—bypassing the Kenya Pipeline Company (KPC), which was originally meant to undertake the project.
Members of the Senate Energy Committee likened the deal to the scrapped Adani deal and grilled Energy Cabinet Secretary Opiyo Wandayi over what they termed a secretive and questionable procurement process.
“The project was quietly shifted from KPC to a private foreign firm under a 31-year lease. We demand to know why,” said Busia Senator Okiya Omtatah, who also called for full disclosure of all bids submitted.
The project, now under the operation of Asharami Synergy—a subsidiary of Nigeria’s Sahara Group—was approved by the Cabinet, with Wandayi stating the Ministry of Energy was encouraged to pursue private sector involvement.
Initially, KPC had proposed a 30,000-metric-tonne capacity facility at a cost of Sh17.73 billion. Pakistani firms R&E Modern Technologies and Petrochem Engineering Services were listed as project consultants at the time.
Defending the move, Wandayi told senators: “The law was followed in leasing the 23.19 acres of public land, with approvals granted in accordance with National Treasury Circular Number 1 of 2025.”
He explained that six companies had been invited to bid—Total Energies Kenya, Rubis Energy, Galana Energies, Gulf Energy, Vivo Energy, and Asharami Synergy—but only two submitted proposals. “Following evaluation, Asharami’s bid was found responsive,” he said.
Wandayi also noted that the lease and procurement were approved through a “strategic directive” involving multiple state agencies, including the KPRL Board, KPC, the National Land Commission, and the Office of the Attorney General.
Still, lawmakers were unconvinced, questioning why KPC was sidelined and warning the deal could set a troubling precedent. “We need transparency. This is public land and public money,” Omtatah said.
The debate comes amid growing pressure on the government to reduce cooking gas prices. Just last year, another petrochemical firm, Eleven Energy, had sought clearance to build a similar facility in Mombasa.
The Senate committee is expected to continue probing the matter in the coming weeks.
