• Sonatrach, Algeria's state-owned hydrocarbon company, and Kenya's National Oil Corporation (NOC) signed an MOU for hydrocarbon cooperation.
• The agreement focuses on supplying Kenya with liquefied petroleum gas (LPG), a product the country 100% imports.
• The partnership aims to provide Kenya with stable, competitively priced LPG and develop its distribution infrastructure, supporting its goal to double per capita consumption by 2030.

Sonatrach, Algeria's state-owned hydrocarbon company, and the National Oil Corporation of Kenya (NOC) officially signed a memorandum of understanding (MOU) on Monday, September 8. The agreement covers cooperation in the hydrocarbons sector.

Officials initialed the document during the Intra-African Trade Fair in Algiers. It specifically targets supplying Kenya with liquefied petroleum gas (LPG), a product the country fully imports, according to the U.S. Department of Commerce.

The understanding outlines several key areas. It provides for Sonatrach to study direct supply mechanisms, establish commercial platforms for LPG and petrochemicals, and develop distribution infrastructure in Kenya. A training component for NOC teams by Sonatrach is also included.

The partnership aims to give Kenya more stable access to competitive volumes of LPG. It comes as Nairobi plans to launch wholesale imports via tender by December 2025. Additionally, Kenya is studying LPG price regulation to lower costs for households.

According to the Kenya National Bureau of Statistics (KNBS), the average price of a 13 kg cylinder climbed 6.5% between 2023 and 2024, rising from 3003 to 3199 Kenyan shillings (approximately $23 to $25). In May 2025, the average retail price reached 3160 Kenyan shillings (about $24), nearly double the wholesale price.

Kenya places LPG central to its 2025-2034 energy strategy. It aims to double per capita consumption from 7.5 kg to 15 kg/year by 2030. The strategy also seeks to increase LPG's share in the cooking mix to 35%, up from an estimated 31% in 2023, according to the International Energy Agency (IEA). This move intends to reduce the use of wood and other polluting cooking fuels. The IEA estimates that 69% of households still rely on these energy sources.

Beyond its impact on national energy security, the government intends to position Kenya as a regional LPG hub in East Africa. It plans to achieve this through targeted investments in storage and port logistics at Mombasa.

This article was initially published in French by Abdel-Latif Boureima
Adapted in English by Ange Jason Quenum