Algeria’s national energy company Sonatrach and the Kenya National Oil Corporation (KNOC) have taken a substantial step toward boosting East-West African energy trade via a Memorandum of Understanding signed at IATF 2025 in Algiers. The agreement lays out plans for Algeria to export liquefied petroleum gas (LPG) and refined petroleum products to Kenya, while also collaborating on joint upstream projects, knowledge transfer, training, and the development of regional trading platforms for fuels and petrochemicals.
Kenya’s energy sector is positioned for transformation. A government strategy to expand LPG access through common-user storage and handling facilities aligns closely with Sonatrach’s supply plans. The nation aims for universal access to clean cooking by 2028, targeting per-capita LPG consumption to hit 15 kilograms, up from current averages of roughly half that. Regulatory reforms increasing entry thresholds for licensed LPG dealers and promoting bulk import terminals are already underway. These initiatives are expected to reduce cost, improve safety, enhance reliability of supply, and strengthen local industry participation.
The MoU between Sonatrach and KNOC complements these domestic reforms by potentially providing a steady import source of LPG and petroleum products needed to balance Kenya’s supply gaps. Shared trading platforms and virtual storage could further leverage common user infrastructure, including the newly commissioned LPG bottom-loading facility in Mombasa and proposed bulk handling terminals. Such infrastructure scales are critical to reduce shipping and handling costs, bring down end-user prices, and make energy more accessible in rural areas.
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Jointly exploring downstream vehicle fuel applications of LPG and household energy uses also opens opportunities to reduce dependency on biomass for cooking, which still accounts for nearly 70 percent of Kenya’s household fuel usage in rural regions. Switching more households to LPG, especially where clean supply chains and safety regulations are improved, not only brings environmental benefits but also health gains, fewer indoor pollutants, and reduced deforestation pressure.
Strategically, this collaboration reflects a broader continental transition toward more integrated energy markets underpinned by reliable supply, cleaner fuels, and stronger value chains. Algeria, among leading exporters of natural gas in Africa, has shown increasing interest in green hydrogen and electricity interconnections.
Kenya, for its part, has launched reforms and infrastructure investments that lift barriers to entry in import, storage, and distribution sectors. Success of the Sonatrach-KNOC partnership will depend on aligning technical standards, regulatory clarity, cost of freight and terminals, and ensuring that trade commitments result in affordable prices for Kenyan consumers. Observers should watch contract implementation timelines, quality and safety oversight, and how local capacity is built in both parties.
Sonatrach’s move into the Kenyan energy market via this agreement may well signal a turning point where bilateral energy cooperation begins to supply both energy security and clean energy access. The real test will come as feasibility studies transition into executed projects and as Kenya advances toward its 2028 deadline for clean cooking access.
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