Table of Contents
Key Points
- Kenyan court dismisses lawsuit, clearing way for Taifa Gas’s $130.5 million LPG terminal construction in Mombasa’s Dongo Kundu SEZ.
- Taifa Gas’s $130.5 million terminal will boost regional LPG supply, challenging Kenya’s market leader Africa Gas and Oil Ltd.
- Entry of Taifa Gas sparks 13 new license applications as East Africa’s LPG infrastructure competition intensifies.
A Kenyan court has dismissed a lawsuit that sought to block the construction of a Ksh16.7 billion ($130.5 million) liquefied petroleum gas (LPG) terminal by Taifa Gas Investments SEZ Ltd, a company linked to Tanzania’s first dollar billionaire, Rostam Aziz—removing a key obstacle to his regional energy expansion.
The suit, filed earlier this year by Likoni residents Mohamed Karungu and Raphael Nyiro, alleged that the proposed facility in Mombasa’s Dongo Kundu Special Economic Zone posed environmental risks and had bypassed critical public consultations.
Legal win clears path for East African expansion
The Environment and Land Court in Mombasa had previously declined to issue an injunction, and the plaintiffs unexpectedly withdrew the case just days before a scheduled July 29 hearing. No public reason was provided for the withdrawal.
With the case dismissed, Taifa Gas is expected to begin full-scale development of the Ksh16.7 billion ($130.5 million) storage and distribution hub. The project—backed by Tanzania’s largest LPG distributor—will feature a 30,000-tonne handling capacity and is part of a broader effort to lower energy costs in Kenya and boost regional supply chains.
Taifa Gas secured its operational license in February 2023 following bilateral talks between Tanzanian President Samia Suluhu Hassan and Kenyan President William Ruto, ending years of regulatory gridlock.
The upcoming terminal threatens the longstanding dominance of Africa Gas and Oil Ltd., controlled by Kenyan tycoon Mohamed Jaffer. Taifa Gas aims to undercut competitors by facilitating bulk LPG imports, aligning with Ruto’s pledge to reduce the cost of cooking gas.
13 firms enter fray as energy battle heats up
Aziz's entrance into Kenya has catalyzed competition: 13 additional companies are reportedly seeking licenses to build berths for LPG handling, a sign of intensifying interest in Kenya’s downstream gas infrastructure.
The Dongo Kundu terminal could also serve as a regional export hub, reaching landlocked markets such as Uganda, Rwanda, and the Democratic Republic of Congo. Industry analysts say the facility may tilt East Africa’s LPG dynamics toward Tanzanian-led supply chains.
Rostam Aziz enters Kenya energy
Tanzanian billionaire Rostam Aziz, named the country’s first dollar billionaire by Forbes in 2013, is steadily cementing his influence in Kenya’s energy sector. As the founder of Taifa Group, Aziz has built a business empire spanning energy, telecommunications, logistics, agriculture, and more, positioning himself as a central figure in East Africa’s private sector.
The terminal, designed with advanced technology to lower household gas prices, directly challenges the dominance of Mohamed Jaffer’s Africa Gas and Oil Ltd (AGOL), intensifying competition in Kenya’s tightly held LPG market.
Aziz’s push into Kenya is part of a broader regional strategy. His proposed $100 million East African Youth Talent Fund, blending philanthropy and soft power, further underscores his aim to shape not just markets—but also the region’s economic future.
