Taifa Gas, which Tanzanian business magnate Rostam Aziz owns, has received a licence from Kenya to establish a cooking gas plant and storage facilities at Mombasa port.
The Liquified Petroleum Gas (LPG) supplier is expected to construct a 30,000-tonne Kenya facility at the Special Economic Zone in Dongo Kundu.
Once completed, it will cut the cost of handling and evacuating cooking gas from the ships to the mainland, allowing dealers to transfer the cost relief to consumers.
Currently, LPG prices in Kenya are high, with the 13-kilogramme container retailing at an average price of KSh3,266 in Nairobi, while the six-kilogramme has crossed KSh2,000.
According to Energy Minister Davis Chirchir, 75.0% of LPG in Kenya is imported by a single player.
The entry of Taifa Gas into Kenya is part of a trade deal agreed upon by Kenya’s former President Uhuru Kenyatta and Tanzania’s Samia Suluhu in 2021.
