Tanzania's Taifa Group Limited secures green light for Sh16 billion LPG plant in Kenya

Taifa Group Limited, one of the biggest Liquefied Petroleum Gas (LPG) companies on the continent, has gotten the green light to set up a plant in Kenya following a court decision that had resulted in a protracted battle over the location of the new project.

The decision for Taifa Group Limited to continue with the project came after a ruling by the Environment and Land Court at Mombasa in Petition No. E006 of 2025, which reaffirms the legality and procedural integrity of the Taifa Gas Liquefied Petroleum Gas (LPG) storage terminal project at the Dongo Kundu Special Economic Zone.

The company is investing USD130 million (Sh16 billion) in a Liquefied Petroleum Gas (LPG) import, storage and distribution plant.

Delivering judgment, Hon. Justice Stephen Kibunja upheld a preliminary objection and struck out the petition, confirming that the project’s Environmental Impact Assessment Licence No. NEMA/EIA/PSL/21998 was lawfully obtained, and all requisite approvals fully complied with the Environmental Management and Coordination Act (EMCA), 1999, as well as Kenya’s constitutional and statutory safeguards.

Founder of Taifa Gas Rostam Azizi said the company is committed to adhering to the due processes and ensuring environmental conservation as it executes the project.

“This ruling is not only a vindication of our commitment to due process and environmental responsibility, but also a milestone for Kenya’s energy transition. Our 30,000-metric-ton LPG terminal, the largest in Africa, will expand access to clean energy, strengthen regional energy stability, and create new pathways for prosperity,” said Azizi.

He added that Taifa Gas’s sustainability commitment goes beyond infrastructure: “Alongside delivering clean energy solutions, we are committing to improving livelihoods, especially for the women living in communities around the project. Empowering women economically is central to ensuring this project delivers long-term, inclusive impact.”

The Court noted that both the National Emergency Management Agency (NEMA) and the National Environment Tribunal (NET) had already validated Taifa Gas’s environmental assessments and approvals. Justice Kibunja also confirmed that the petitioners were part of the same Likoni community that had previously pursued the same issues before the NET in 2022.

By upholding the preliminary objection, the Court established a key precedent for finality in environmental approvals, ensuring that lawfully approved projects are not repeatedly challenged through recycled petitions. This decision strengthens confidence in Kenya’s environmental governance and reinforces the balance between environmental justice and sustainable development.

“We appreciate the Court’s clarity, which allows us to move forward with full focus on safe, sustainable delivery,” said Dr Timothy Kyepa, Taifa Group General Counsel. “It demonstrates that when investors follow the law and uphold environmental safeguards, Kenya’s institutions will provide certainty and protection. This is good for justice, good for business, and good for sustainable development.”

The Taifa Gas Dongo Kundu LPG project is designed to strengthen Kenya’s energy security, promote cleaner cooking solutions for households, and create meaningful employment opportunities. The project represents a major investment in Kenya’s clean energy future, enhancing competition and affordability in the LPG sector in line with the National Energy Policy (2018).

As part of Kenya’s drive to increase LPG penetration from 24 per cent to 70 per cent by 2028 under the Ministry of Energy’s clean cooking strategy, the facility will provide 30,000 tonnes of storage capacity, reducing import bottlenecks, stabilising prices, and ensuring consistent supply. The project also supports cross-border energy integration between Kenya and Tanzania, complementing regional trade objectives under AfCFTA and the East African Community (EAC) framework.

“This project is not just about infrastructure. It's about unlocking regional energy resilience. The Dongo Kundu terminal will position Kenya as a key LPG hub for East Africa,” added Azizi.

The entry of a multinational conglomerate from Tanzania into the Kenyan market is expected to shake up the energy industry, forcing prices downwards.

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In 2023, President Ruto's government allocated the company 30 acres of land from the 3,000 acres that had been set aside for the Dongo Kundu SEZ project.

The new plant is designed to store propane, butane and LPG mix of various grades for domestic, commercial and industrial use.

According to the company, the project is expected to take 12 months to be completed, and eventually over 90,000 locals will be employed both directly and indirectly.

Their entry into the Kenyan market started in 2017 but encountered some barriers before a deal was finally reached in 2021 between former President Uhuru Kenyatta and Tanzania’s Samia Suluhu.

In Tanzania, the company has a storage plant with a capacity of 7,450 metric tonnes and 25 depots in all major towns, making it the biggest LPG company in that country.

Taifa Group, founded by East African businessman Rostam Aziz, is a diversified regional conglomerate with interests in energy, telecommunications, logistics, and agriculture. The Group plays a major role in advancing transformative infrastructure and industrial development across the region, with a strategic focus on sustainable growth and regulatory compliance.

The Group’s extensive portfolio spans mining, LPG, solar energy, manufacturing, aviation, telecommunications, transportation, and logistics, positioning it as one of East Africa’s most prominent and influential business entities. Through its investments, Taifa Group continues to drive economic expansion, enhance regional competitiveness, and support long-term socio-economic development.