Mombasa: Construction of the Sh16 billion Taifa Gas Liquefied Petroleum Gas (LPG) terminal at the Dongo Kundu Special Economic Zone (SEZ) in Mombasa, set to be East Africa’s largest, is progressing steadily. The Taifa Gas storage plant is an energy project nearing completion, with the facility aiming to break a market monopoly, lower cooking gas prices, and turn Mombasa into a major East African LPG hub.
According to Kenya News Agency, President William Ruto presided over the groundbreaking ceremony for the Taifa Gas liquefied petroleum gas terminal on February 24, 2023. The entry of Taifa Gas, controlled by Tanzanian billionaire Rostam Aziz, at a site in Dongo Kundu near the port of Mombasa is part of a trade deal between Kenya and Tanzania. The plant marks the first major investment in the Dongo Kundu Special Economic Zone and is expected to generate at least 120 jobs in its first stage as the country accelerates efforts to expand gas infrastructure.
The Dongo Kundu Special Economic Zone (SEZ) is a 3,000-acre industrial and logistics hub in Mombasa County, managed by the Special Economic Zones Authority and the Kenya Ports Authority. It aims to transform Kenya into a regional manufacturing and transshipment leader. The Taifa Gas project represents one of the foundations upon which the country’s gas initiative is being built. Observers contend the new gas terminal will strengthen Kenya’s LPG supply chain through efficient bulk importation, storage, and distribution to markets across the country and beyond.
Taifa Gas Project Mechanical Engineer Moses Ochieng stated that the project aligns with the government’s economic development blueprints and clean energy goals by scaling up regional cooking gas availability and driving down household energy costs. The Taifa Gas LPG terminal is slated for commissioning in October 2026 and will receive bulk liquefied petroleum gas directly from berth number three at the Kipevu Oil Terminal (KOT) via a dedicated 3.5-kilometer pipeline network. The project features an 18-inch, 3.5-kilometer pipeline connecting the Kipevu Oil Terminal to the Dongo Kundu Special Economic Zone, comprising roughly two kilometers of subsea infrastructure and 1.5 kilometers on land.
Eng. Ochieng mentioned they are executing complex engineering designs, pipeline infrastructure, topside facilities, sea crossings, mechanical installations, and other energy projects that support upstream and downstream operations. Developed on a 30-acre site approximately 4 km from the Port of Mombasa, the facility features 12 spherical storage tanks with a combined capacity of 30,000 metric tonnes, with provisions for future expansion. Construction of the storage tanks is complete with testing underway, while installation of pipelines, electrical systems, and instrumentation is steadily advancing.
Eng. Ochieng added that the Taifa Gas project is built to deliver value today while supporting a stronger energy future for tomorrow. In an interview with KNA, he termed the project a ‘historic milestone’ in achieving self-sufficiency in clean and green energy needs. Once operational, the substantial storage capacity will enhance competition, reduce supply bottlenecks, and drive down the cost of cooking gas for households and businesses.
The Taifa Gas project, which commenced construction in 2023, will be operational by October 2026, supporting the country’s energy needs for domestic use and export. Once operational, it will improve domestic gas transportation, stimulate industrial development, encourage manufacturing, and create new economic opportunities across the country. Once fully operational, Taifa Gas will introduce more competition in the bulk cooking gas market, joining Lake Gas, which started operations in Kilifi last year. This will increase the number of bulk gas suppliers to three and is expected to challenge the market dominance of African Gas and Oil Company.
