By Cece Siago
Kenya’s clean energy transition is set to accelerate as the Taifa Gas project takes shape at the Dongo Kundu Special Economic Zone.
The Sh16 billion ($130 million) Tanzanian backed firm, now 80 per cent complete, is scheduled for a March 2026 launch, making it the first major investment in Dongo Kundu SEZ.
The million dollar firm was launched in 2023, but continued legal battles between a section of locals and the investor delayed it until late last year when a court cleared the case.
According to Taifa Gas Investments Site Manager Anthony Musyoka, the Liquified Petroleum Gas (LPG) bulk storage facility project is in its final phase.
“We are now at 80 per cent development and we shall be ready in March. We know that this will translate to affordable, reliable, safe cooking gas to the Kenyan community,” said Musyoka.
At the moment, 12 mega spherical tanks are in the final construction for the storage of the gas expected to be imported at the 30 acres’ piece of land in Mombasa County.
The plant will be responsible for both storage and distribution of 30,000 metric tonnes of LPG and could expand up to 45,000 tonnes making it the largest LPG terminal in the region.
Speaking while on a tour at the facility to assess the project, Investment Promotion Principal Secretary Abubakar Hassan said the increase in storage of the gas will lead to a drop in prices of cooking gas.
“The problem we have as a country is storage. Kenya has currently 35,000 metric tonnes of LPG storage despite the rising demand. We are doubling the storage capacity of gas which will greatly reduce the price to the consumer,” Hassan said.
Investment Promotion Principal Secretary Abubakar Hassan speaking during an inspection tour of the Sh16 billion project in Dongo Kundu. The facility will be launched in March by President William Ruto. PHOTO BY CECE SIAGO
He explained that one of the contributors of the high price to consumers is lack of storage capacity, making supply low.
For instance, when LPG is imported with less storage price goes high.
“But when the supply is high, the demand will reduce. At the same time when the volume is high at the source, the price will lower,” he added.
Once complete, at least 120 Kenyans are expected to be employed.
Special Economic Zones Authority (SEZA) Chief Executive Officer Ken Chelule said more than 100 investors have shown interest in Dongo Kundu.
“This is our anchor tenant that we hope to see project progress. We also hope their investment will translate to savings in terms of family friendly level of the cost of gas,” he said.
He noted that as investors are coming in, the government is also investing in infrastructure including a multipurpose berth specifically for the zone.
Construction progress of spherical tanks to be used to store 30000 metric tonnes of LPG Gas at the Taifa Gas Facility. PHOTO CECE SIAGOÂ
“The berth construction is underway with contractors on site, road construction and electricity will be coming up soon. This is becoming a premium zone with close to 100 investors showing interest,”
“To ensure we are getting the right people this zone is clearly clustered. We are using a clear criterion to ensure that we get quality investors who can not only create jobs but also create a good ecosystem including use of our ports,” he said.
Chelule revealed that a foreign bank, pharmaceutical firm and a glass making firm were in final licencing stages to also set up at the area.
In 2023 after its launch, there was little progress even as President William Ruto promised cheaper gas to Kenyans.
A section of residents protested cutting of trees and other environmental concerns especially in the marine environment, seeking the courts to order a stop of the development.
However in November 2025, Tanzanian Billionaire Investor Rosterm Azizi , who the company is associated with secured legal victory when the Environment and Land Court in Mombasa dismissed the etition that the project would harm the environment.
Compensation and resettlement of the Project Affected Persons (PAPs) in the 3000 acre piece of land was also a challenge, but officials said this had been cleared.
