Africa’s largest LPG terminal by Tanzanian investor secures green light in Kenya


By Our Reporter, Mombasa

Taifa Group Limited has welcomed a new ruling by the Environment and Land Court in Mombasa, which has confirmed that the Taifa Gas Liquefied Petroleum Gas (LPG) terminal at the Dongo Kundu Special Economic Zone was approved lawfully and in line with Kenya’s environmental regulations.

The decision was delivered in Petition No. E006 of 2025 by Justice Stephen Kibunja, who upheld a preliminary objection and struck out the petition. 

The Court ruled that the project’s Environmental Impact Assessment Licence No. NEMA/EIA/PSL/21998 was properly issued and that all required approvals complied with the Environmental Management and Coordination Act (EMCA), 1999, as well as constitutional procedures.

Taifa Gas founder and Tanzanian industrialist, Rostam Azizi, said the ruling reinforces the company’s commitment to lawful processes and environmental responsibility. 

He described the decision as a major milestone for Kenya’s energy transition, noting that the 30,000-metric-ton facility is the largest LPG terminal in Africa and is set to expand access to clean energy while strengthening regional energy security.

Mr Azizi said the project also aims to improve lives in communities around Dongo Kundu. He explained that part of Taifa Gas’s sustainability plan includes supporting women’s economic empowerment, which he described as central to ensuring long-term, inclusive benefits

In the judgment, the Court emphasized the importance of respecting the jurisdiction of environmental institutions. 

Justice Kibunja noted that both the National Environment Management Authority (NEMA) and the National Environment Tribunal (NET) had already reviewed and validated the project’s environmental approvals. 

The petitioners were found to be part of the same Likoni community that raised similar complaints before the NET in 2022.

By striking out the case, the Court established a strong precedent on the finality of environmental approvals, helping prevent repeated challenges on issues that have already been resolved. 

The ruling is expected to boost investor confidence by signalling that projects complying with the law will not face endless litigation.

Taifa Group General Counsel, Dr Timothy Kyepa, praised the judgment, saying it gives the company clarity to continue working on the project safely and sustainably. 

He said the ruling demonstrates that Kenya’s institutions offer certainty for investors who follow environmental safeguards. 

According to him, this is positive for justice, business confidence, and sustainable development.

The Taifa Gas terminal is expected to play a key role in Kenya’s clean-cooking agenda. 

The country aims to raise LPG penetration from 24 percent to 70 percent by 2028. 

The new facility will provide 30,000 tonnes of storage capacity, reduce import delays, stabilise prices, and ensure a consistent supply of LPG. 

The project is also expected to create jobs and support regional energy integration between Kenya and Tanzania, in line with AfCFTA and East African Community trade goals.

Mr Azizi said the terminal is more than an infrastructure investment, noting that it positions Kenya as a key LPG hub for East Africa and helps unlock regional energy resilience.

Taifa Group, founded by East African businessman Rostam Azizi, is one of the region’s most influential conglomerates, with investments in energy, telecommunications, logistics, agriculture, mining, aviation, and manufacturing. 

The Group is currently investing USD 130 million in the Dongo Kundu LPG import, storage, and distribution terminal through its subsidiary, Taifa Gas Investments SEZ Limited. 

The project is among Kenya’s largest LPG infrastructure ventures and is expected to lower fuel costs, enhance energy security, and deliver large-scale employment opportunities.

Through its wide portfolio, Taifa Group continues to drive economic expansion and support long-term development across East Africa.


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