- Taifa Gas has entered the final testing phase of its US$130 million LPG terminal in Mombasa, positioning the facility to become East Africa’s largest LPG storage hub.
- The project aims to increase competition in Kenya’s LPG market, strengthen regional supply security and reduce import costs.
Taifa Gas has entered the final testing phase of its US$130 million liquefied petroleum gas (LPG) terminal in Mombasa, bringing East Africa’s largest LPG storage facility closer to commercial operation.
The Tanzanian energy company has started hydrostatic testing at the Dongo Kundu Special Economic Zone. The procedure marks the final safety stage before engineers commission the terminal’s pressurised storage vessels.
Inspectors from Kenya’s Energy and Petroleum Regulatory Authority and the Kenya Bureau of Standards are overseeing the testing process.
The terminal will store 30,000 metric tonnes of LPG across 12 spherical pressurised tanks on a 30-acre site. Taifa Gas has also planned an expansion that will increase capacity to 45,000 metric tonnes.
The project will reshape Kenya’s LPG market, where a small number of operators currently dominate imports and storage.
Kenya imports almost all of its LPG, which millions of households use for cooking. African Gas and Oil Company currently handles most of the country’s LPG imports, while Lake Gas operates the second-largest storage terminal. Together, the two companies account for more than 98 per cent of the market.
Taifa Gas aims to increase competition by operating its own marine berth. The company will receive very large LPG carriers without relying on third-party import infrastructure. This approach will reduce handling costs, improve operational efficiency and strengthen supply reliability.
Site Manager Anthony Musyoka said construction teams have completed the storage tanks, while engineers are finalising the electrical systems, instrumentation and product pipelines.
He also commended the Kenyan Government and the Kenya Ports Authority for supporting the project and providing the approvals required for the marine connection.
Kenya’s Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, said the terminal should begin operations within three months. He added that Taifa Gas will become the first major investor to commence operations inside the Dongo Kundu Special Economic Zone.
Kinyanjui said the project will transform Mombasa into a regional LPG logistics hub serving Kenya and neighbouring countries.
President William Ruto launched the project in February 2023 and described it as Kenya’s largest private foreign direct investment since 1977. Construction later paused after residents challenged the project’s environmental and safety approvals. The High Court dismissed the case in late 2025, allowing construction to resume.
The Mombasa terminal complements Taifa Gas’ existing import facilities in Dar es Salaam and Zanzibar, creating an integrated regional supply network.
Chairman Rostam Aziz said the three terminals will improve energy security by allowing each facility to support the others during supply shortages.
The integrated network will also enable Taifa Gas to consolidate imports and negotiate larger cargo purchases from Middle Eastern suppliers. The strategy will lower the landed cost of LPG across the region.
The company has also agreed to acquire a 49 per cent stake in PanAfrican Energy, operator of Tanzania’s Songo Songo natural gas field. The acquisition will extend Taifa Gas’ operations from gas production to distribution.
Neither Taifa Gas nor the Kenyan Government has disclosed the terminal’s handling charges. Industry stakeholders consider the pricing structure a key factor in determining whether the additional capacity will reduce LPG prices for consumers.