Taifa Gas’ multi-billion-shilling LPG terminal at Dongo Kundu is closer to completion, marking a major step toward improving Kenya’s cooking gas supply and reducing energy costs.
The facility is expected to substantially increase the country’s cooking gas storage capacity, improve supply reliability, and introduce greater competition into the LPG market.
According to a statement issued on July 19 by the Special Economic Zones Authority (SEZA), the 30,000-metric-tonne Taifa Gas terminal at Dongo Kundu Special Economic Zone is nearing completion. It will boost Kenya’s LPG storage capacity.
Further, the Authority emphasized that the terminal will expand the planned Tanzania-Kenya gas pipeline as the government is set to expand clean and affordable cooking gas across the country under the Bottom-UP Economic Transformation Agenda.
“With expanded storage and the planned Tanzania–Kenya gas pipeline, the government is set to expand access to clean, reliable, and affordable cooking gas for millions of households across the country,” SEZA noted.
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Kenya’s LPG Storage Capacity
The Taifa Gas terminal will directly add 30,000 metric tonnes of LPG storage capacity, making it one of the largest LPG facilities in East Africa.
Further, the terminal consists of 12 large spherical storage tanks built on a 30-acre site within the Dongo Kundu Special Economic Zone in Mombasa.
According to SEZA, the location of the terminal near the Port of Mombasa will allow for efficient handling of imported LPG cargo.
Additionally, the facility will reduce logistical bottlenecks that have historically constrained the supply of cooking gas into the country, thereby affecting prices.
Taifa Gas Terminal Project
The Taifa Gas terminal at the Dongo Kundu Special Economic Zone is a KSh16 billion project developed by Taifa Gas Investment SEZ Limited.
Taifa Gas, which is East Africa’s largest gas facility, is linked to Tanzanian billionaire Rostam Aziz and features an initial 30,000 metric tonnes of storage capacity across 12 spherical tanks on a 30-acre site, expandable to 45,000 tonnes.
Rostam Aziz acquired the license the establish the gas terminal in 2022, and President William Ruto later launched the project to address the limited storage capacity, with Investment Promotion Principal Secretary Abubakar Hassan explaining that the country has the capacity to store only about 35,000 metric tonnes of LPG.
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Construction of the terminal began in 2023, and by late January 2026, the Cabinet Secretary for Investment, Trade, and Industry, Lee Kinyanjui, announced that the project was 80 percent complete and set to be operational by March.
“And this special economic zone being at the port is designed to attract investors with an export market in mind. We are happy to note that today we see commendable progress, and in the next two months, by around April or March, we expect that it will be complete,” Lee Kinyanjui stated.
Speaking during the terminal progress review, CS Lee Kinyanjui noted that completion of the facility would help break the monopoly in the cooking gas supply and slash the prices.
Further, the CS argued that the terminal will break the 98 percent duopoly control of the Kenya’s LPG imports and integrate the regional pipelines for affordable cooking gas.
In July, SEZA affirmed that the project is nearing completion and will soon be preparing for production to lower the cooking gas prices and stabilize the supply.
Upon completion, the Dongo Kundu terminal will serve as a regional LPG distribution hub supplying Kenya, Uganda, Rwanda, Burundi, South Sudan, and the Eastern Democratic Republic of Congo
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