Details of Taifa Gas, the Fuel Set to Replace KOKO in Kenya

Construction of the Taifa Gas liquefied petroleum gas (LPG) storage and distribution facility in Mombasa has reached 80 per cent completion.

Taifa Gas project is aimed at providing Kenyans with affordable gas after KOKO Networks shut its operation in Kenya following a dispute over carbon credit sales approval by the Kenyan Government.

The project was launched in 2023 and is expected to be launched by President William Ruto in March 2026. 

Taifa Gas Plant in Mombasa

Taifa Gas is a Tanzanian gas dealer owned by Rostam Aziz, licensed in 2022 to establish a gas plant and storage facilities in Dongo Kundu near the port of Mombasa, to supply LPG for domestic, commercial, and industrial use in Kenya.

Also Read: Kenyan Households Affected as KOKO Networks Shut Down Operations

One of the biggest challenges in Kenya’s LPG market has been limited storage capacity, which has led to frequent shortages and volatile prices.

According to Investment Promotion Principal Secretary Abubakar Hassan, the country currently has the capacity to store only about 35,000 metric tonnes of LPG. The Taifa Gas facility, once completed, will add 30,000 metric tonnes, almost doubling national storage levels.

“And the LPG gas is because of the lack of storage facilities in the country, they were the supply there were supply shortages and increasing prices of those, so this project, which provides a storage facility of 30,000 metric tons, will greatly reduce the price of LPG gas to Kenyans,” said Hassan.

Taifa Gas Site manager, Antony Musyoka, acknowledged that the government is supporting the project.

“Through the support of the government, we have been able to develop the 30 acres that have been awarded to develop an LPG facility that will be responsible for both storage and distribution,” said Musyoka.

Dongo Kundu SEZ Emerges as Key Investment Hub

Taifa Gas facility is part of the broader development of the Dongo Kundu Special Economic Zone, which is quickly becoming a major industrial and logistics hub in the Coast region.

Government officials say infrastructure works within the zone are progressing well, with roads, utilities, and investor plots being prepared.

Chief Executive Officer of the Special Economic Zone Authority of Kenya, Kenneth Chelule, commenting on the Dongo Kundu Special Economic Zone, said it is attracting people interested in setting up operations. 

“This zone is becoming a premium zone where there’s a lot of interest, numbering close to 100 investors who are interested, but for purposes of making sure that we are getting the right people, this zone is clearly clustered and master planned properly,” said Chelule.

Currently, the project has created employment for more than 100 Kenyans in Mombasa.

Also Read: Truth About Dipping Gas Cylinders in Water to Save Gas While Cooking

Why KOKO is Shutting Down its Operation in Kenya

The main reason behind KOKO’s closure is the failure by the Kenyan government to authorize the sale of carbon credits, which are essential for subsidizing fuel costs for low-income households.

These credits are generated when households switch from charcoal and wood to bioethanol, reducing greenhouse gas emissions, preventing deforestation, and improving indoor air quality.

KOKO Networks had secured a $179.6 million political risk guarantee from the World Bank’s Multilateral Investment Guarantee Agency (MIGA), covering expropriation, war and civil disturbance, transfer restrictions, and breach of contract for up to 15 years.

The project supports the distribution of bioethanol cookstoves and fuel to low-income households, contributing to public health, environmental protection, and climate resilience goals aligned with the Paris Agreement.

Reports indicate the company may file a claim under the MIGA guarantee, alleging breach of contract, with 700 jobs and a $300 million investment at stake.

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