Tanzanian-owned Taifa Gas, controlled by businessman Rostam Aziz, is close to completing its US$124 million LPG import terminal in Mombasa, Kenya. The project is poised to challenge Kenya’s existing cooking gas import duopoly.
In July, Kenya’s Special Economic Zones Authority announced that the 30,000-tonne facility at the Dongo Kundu Special Economic Zone was nearing completion, although it did not provide a firm commissioning date. The update followed an earlier projection that operations would begin around March or April, after the project reached approximately 80% completion in January.
The terminal is designed to store 30,000 metric tonnes of LPG across 12 spherical tanks on a 30-acre site near the Port of Mombasa, with expansion capacity to reach 45,000 tonnes. It is being developed by Taifa Gas Investments SEZ Limited and is designed for bulk LPG imports, storage, and onward distribution across the region.
Kenya and Tanzania Are Emerging as the Region’s Most Compelling Clean Energy Investment Landscapes.
Taifa Gas’ investment represents more than a corporate expansion; it signals that Kenya and Tanzania are emerging as some of the region’s most promising LPG markets, although their growth trajectories differ significantly.
Kenya combines stronger retail formalisation with higher LPG consumption levels, with national demand projected to increase from approximately 446,190 tonnes in 2025 to 588,900 tonnes by 2029. This growth reflects not only current consumption trends but also structural factors accelerating demand growth.
Meanwhile, Tanzania benefits from rising imports, expanding port infrastructure, and government-backed clean cooking initiatives.
LPG imports surged by 38% in one year, rising from 293,167 metric tonnes in 2023 to 403,638 metric tonnes in 2024. Per capita LPG consumption currently stands at 2.6 kg per year, compared with the government’s target of 10 kg per year by 2033 — representing a nearly fourfold growth opportunity. The market is not saturated; it remains in the early stages of its growth curve.
The Tanzanian government has removed VAT on LPG imports, distributed 450,000 subsidised cylinders, restricted biomass use in large institutions, and established a national target of achieving 80% clean cooking adoption by 2034.
For investors, Kenya and Tanzania currently offer one of the strongest combinations of market scale, infrastructure development, and demand growth potential in East Africa.
Infrastructure Ownership.
This investment also highlights that significant opportunities exist at the intersection of infrastructure development and affordability. Operators with storage assets, import access, and bottling capacity can build strong and defensible positions in the regional LPG market.
Taifa Gas is one of the largest LPG distributors in East and Southern Africa, with operations across Uganda, Rwanda, South Sudan, and Zambia
