A heated dispute has erupted in Parliament over the Ministry of Energy’s decision to lease public land for a key LPG project to Nigerian-owned Asharami Synergy, raising alarm about transparency, constitutional compliance, and public accountability in the execution of national energy policy.

Under scrutiny is a 31-year lease agreement between the Ministry and Asharami Synergy, a subsidiary of the Sahara Group, for the development of a liquefied petroleum gas handling facility at the Kenya Petroleum Refineries Limited (KPRL) site in Mombasa.

The Energy Ministry defended the decision, citing the National LPG Growth Strategy and a Cabinet directive from October 2023 that allows private sector participation in LPG infrastructure due to budget limitations.

Energy Cabinet Secretary Opiyo Wandayi said the project only covers 23.19 acres of land and assured the Senate that the facility will revert to government control through the Kenya Pipeline Company after the lease period.

But the Senate Standing Committee on Energy expressed sharp dissatisfaction with the deal. Leading the criticism, Senator Okiya Omtatah questioned the constitutionality of the Cabinet's move, saying it ignored Article 10, which requires public participation.

"The decision of the Cabinet does not align with Article 10 of the Constitution of Kenya. It was not submitted to public participation; therefore, it was a boardroom decision," he said.

He dismissed the Ministry's explanation as inadequate, stating, "The response is not good enough and does not address the matter that I asked satisfactorily."

The Ministry explained that six firms had been invited to submit bids under a Specially Permitted Procurement Procedure approved by the National Treasury.

These included TotalEnergies, Rubis Energy Kenya, Galana Energies, Gulf Energy, Vivo Energy, and Asharami Synergy. However, only Gulf and Asharami responded, with the latter being awarded the lease after evaluation.

Still, senators demanded more clarity. "Since the report is not good enough according to Sen. Omtatah, then the Cabinet Secretary should seek leave and come up with more substantial answers," Senator Veronica Maina said.

Another concern raised was Sh192.64 million spent by the Kenya Pipeline Company on initial project studies—including environmental and social impact assessments and engineering designs—before the handover.

The Ministry admitted that discussions with Asharami regarding information sharing and cost recovery were ongoing.

Senator Omtatah further accused the government of inserting legal changes related to the deal through the Finance Bill without public notice.

"The amendment was sneaked in public finance through the Finance Bill," he claimed.

Senators Bonni Khalwale, Beatrice Akinyi, William Kisang, and Veronica Maina all participated in the heated session.

The committee concluded that the Ministry should return with more detailed and constitutionally compliant answers.