Taifa Gas Dongo Kundu LPG Terminal Project Gets Court Approval, Clears Way for Africa’s Largest LPG Storage Facility

Kenya’s $130 million (approximately KSh 20.9 billion) Taifa Gas LPG terminal at the Dongo Kundu Special Economic Zone (SEZ) in Mombasa has received court approval, clearing the way for construction to continue. Once completed, the facility will become Africa’s largest LPG storage terminal, with a storage capacity of 30,000 metric tons.

The project is poised to transform Kenya’s industrial and energy landscape, generating thousands of jobs while strengthening energy security and promoting cleaner cooking solutions across East Africa.

Overcoming Legal Hurdles

Construction had faced multiple delays due to petitions citing environmental and land-use concerns. However, the Environment and Land Court in Mombasa recently dismissed the legal challenges, confirming that the project complies with Kenyan laws.

With court approval, construction has resumed at full speed. Stakeholders anticipate operational readiness between late 2025 and early 2026.

Building Africa’s Energy Future

Developed by Taifa Gas, a Tanzanian-owned energy company led by business magnate Rostam Aziz, the Dongo Kundu terminal is set to:

• Enhance Kenya’s energy security

• Reduce LPG costs for consumers

• Promote cleaner cooking solutions across the region

• Create approximately 90,000 direct and indirect jobs

The Kenyan government allocated 30 acres in the Dongo Kundu SEZ for the project, underlining its priorities in industrialization and energy access.

From Groundbreaking to Operational Readiness

Construction officially began in early 2023, with President William Ruto presiding over the groundbreaking ceremony. Since then, the project has navigated regulatory scrutiny, court petitions, and environmental assessments, progressing steadily toward completion.

According to reports from The Standard, Daily Nation, Business Daily, and The Citizen, the terminal is expected to begin operations by early 2026.

Regional Integration and Economic Impact

Beyond Kenya, the facility is strategically significant for East African regional energy integration, linking Kenya, Tanzania, and neighboring markets through frameworks like AfCFTA and the East African Community (EAC).

Taifa Gas operates across multiple sectors, including solar energy, logistics, agriculture, aviation, and telecommunications, demonstrating its broader commitment to regional development beyond LPG.

Ownership and Governance

While the project enjoys support from the governments of Kenya and Tanzania, Taifa Gas is privately owned by Rostam Aziz. 

What’s Next

As construction progresses, the Dongo Kundu LPG terminal is set to:

• Redefine energy storage and distribution in Africa

• Boost regional energy security

• Drive economic growth and industrial development

• Provide cleaner, safer cooking fuel for millions of East Africans

For Mombasa and Kenya, the project marks a milestone in industrial development, symbolizing the power of private investment, legal perseverance, and regional cooperation.

Project Snapshot

• Estimated Operational Readiness: Early 2026

• Storage Capacity: 30,000 metric tons (largest in Africa)

• Jobs Created: ~90,000

• Investment: $130 million (~KSh 20.9 billion)