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Tanzanian businessmen Ally Edha Awadh and Rostam Aziz are moving into Kenya’s liquefied petroleum gas (LPG) sector after overcoming lengthy legal disputes that had delayed expansion plans. Awadh’s Lake Oil and Gas, based in Kilifi, recently won a court decision upholding its Environmental Impact Assessment (EIA) license, clearing the way after months of uncertainty.
Court clears Awadh, Aziz LPG projects
The ruling followed a separate judgment in favor of Aziz’s Ksh16 billion ($124 million) Taifa Gas LPG terminal in Mombasa, where a petition against the project was dismissed.
For Awadh—the court decision goes beyond regulatory approval—it signals his company’s readiness to compete with established operators including the African Gas and Oil Company (AGOL). AGOL, owned by Mombasa businessman Mohammed Jaffer, operates a 10,000-tonne facility that handles nearly 90 percent of imported LPG in Kenya.
Lake Gas has already started imports at Kilifi, capturing roughly two percent of Kenya’s LPG market since mid-2025. It plans to expand capacity to 30,000 tonnes. In June, Awadh launched operations at the $60 million Vipingo terminal, receiving the first shipment of 10,000 tonnes of cooking gas from Nigeria despite earlier regulatory uncertainty. The facility uses an offshore conventional buoy mooring system to offload gas, which is then piped and stored onshore.
LPG reforms boost Lake Gas, Taifa Gas
Morris Mutiso, general manager of Lake Gas Vipingo, said the ruling “guarantees reliable supply” and urged reforms to shield projects from delays. Ally Edha Awadh called the Vipingo launch a milestone for Kenya’s energy sector, highlighting its role in clean energy access.
The project faced legal setbacks, including a December 2019 revocation of its EIA permit over public participation issues. Local residents had petitioned against it, citing safety risks. Lake Gas and Vipingo Development were fined $155,000 in March 2025 for defying a construction halt. Rostam Aziz’s Taifa Gas is advancing its terminal in Likoni’s Dongo Kundu SEZ.
“Our 30,000-tonne LPG terminal will expand access to clean energy, strengthen supply, and create opportunities for local communities,” he said, noting initiatives to support women and livelihoods near the site. The timing aligns with Kenya’s push to reform the LPG market. The government’s Open Tender System (OTS) aims to raise per capita LPG consumption from 7 kilograms to 15 kilograms by 2028, increasing market penetration from 24 percent to 70 percent while lowering costs and carbon emissions.
Awadh and Aziz grow regional energy
Ally Edha Awadh’s expansion into Kenya continues his rise from a small Tanzanian fuel distributor in 2006 to a regional energy player, operating more than 400 fuel tankers and multiple terminals across East Africa. Lake Gas now supplies LPG in Tanzania, Zambia, the Democratic Republic of Congo, Kenya and Burundi. Rostam Aziz, the first Tanzanian listed as a billionaire by Forbes, brings decades of experience in energy and telecommunications.
Through Taifa Gas, Aziz has built storage and distribution networks in Tanzania and Rwanda, making him a strong competitor in East Africa’s LPG trade. Together, Awadh and Aziz are reshaping East Africa’s energy market. Their ventures combine strategic investment, operational focus, and community engagement, creating a model that balances growth with responsibility while challenging existing players.
