The Sh16 billion cooking gas plant project by Taifa Gas Investments SEZ Limited is being developed in Dongo Kundu, Mombasa County, and is expected to be completed by March this year. The facility, owned by Tanzanian billionaire Rosterm Azizi, had faced delays due to issues with compensation and resettlement for those affected on the 3,000-acre land. These challenges were resolved in October last year, allowing the project to move forward. Currently, it is 80% complete and will be the first major investment in the Dongo Kundu SEZ. It is anticipated to employ at least 120 people during its initial phase. The construction of the Taifa Gas project was initiated in 2023 by President William Ruto, but legal disputes between some locals and the investor delayed progress until late last year when a court ruled in favor of the project. Following that, there was minimal progress as some residents protested the felling of trees and raised environmental concerns, particularly regarding the marine environment, seeking court orders to halt the development. This continued until last year, when the High Court in Mombasa dismissed the petition. According to Anthony Musyoka, the site manager of Taifa Gas Investments, the LPG bulk storage facility is in its final stage. While government officials toured the site to evaluate the project, Mr. Musyoka mentioned that 12 mega spherical tanks are nearing completion for gas storage on a 30-acre plot in Mombasa County. “The plant will handle both storage and distribution of 30,000 tonnes of LPG and could expand up to 45,000 tonnes, making it the largest LPG terminal in the region,” said Musyoka. Taifa Gas is expected to increase competition after Lake Gas in Kilifi started operations last year, increasing the number of bulk gas suppliers to three. This is also expected to reduce the market dominance of African Gas and Oil Company (AGOL), which is owned by Mombasa businessman Mohammed Jaffer and currently handles up to 90% of imported volumes, with a 10,000-tonne storage facility in Mombasa. Read: Tribunal blocks late appeal bid against Sh16bn Taifa Gas project Lake Gas, owned by Tanzanian entrepreneur Ally Edha Awadh, began handling imported cooking gas at its Kilifi facility in mid-2025 but has encountered operational difficulties due to repeated court cases. Despite these challenges, it has managed to gain two percent of the market and plans to expand its project by 15,000 tonnes, bringing its total capacity to 30,000 tonnes. Mr. Awadh’s Lake Gas company recently received approval to expand its cooking gas business after a court confirmed the validity of its Environmental Impact Assessment (EIA) license. Abubakar Hassan, the Investment Promotion Principal Secretary, accompanied by Ken Chelule, CEO of the Special Economic Zones Authority (SEZA), stated that increased gas storage would lead to lower cooking gas prices. “The main issue we face as a country is storage. Kenya currently has 35,000 tonnes of LPG storage despite rising demand. We are doubling the storage capacity of gas, which will significantly reduce the price for consumers,” Hassan said. He explained that one of the reasons for high consumer prices is the lack of storage capacity. “But when supply increases, demand will decrease. At the same time, when the volume is high at the source, the price will be lower,” he added. Mr. Chelule noted that over 100 investors have shown interest in Dongo Kundu, and the government is also investing in infrastructure, including a multipurpose berth specifically for the zone. “This is the anchor tenant we hope to see progress from. We also hope their investment will result in savings in terms of affordable gas prices for families,” he said. “The berth construction is underway with contractors on site, road construction is ongoing, and electricity connections will be coming soon. This is becoming a premium zone with nearly 100 investors showing interest.” Mr. Chelule revealed that a foreign bank, a pharmaceutical company, and a glass-making firm are in the final stages of licensing to establish operations in the area. →akitimo@ke.nationmedia.com Follow our WhatsApp channel for the latest business and markets updates. Provided by SyndiGate Media Inc.Syndigate.info).
