Tanzanian businessman Ally Awadh’s Lake Gas gains 2 percent of Kenya’s cooking gas market with a new $60 million terminal in Vipingo.
Lake Gas, a liquefied petroleum gas (LPG) supplier operating across Tanzania, Zambia, the Democratic Republic of Congo, Kenya, and Burundi, has captured 2 percent of Kenya’s market for handling imported cooking gas.
The company, part of the Lake Group led by Tanzanian businessman Ally Awadh, is taking a share of a business long dominated by local operators.
Lake Gas competes with AGOL, SOT.
Data from the Energy and Petroleum Regulatory Authority (Epra) shows Lake Gas’ share compares with that of African Gas and Oil Ltd. (AGOL) and the Shimanzi Oil Terminal (SOT), which together hold 94.56 percent of the market. Both AGOL and SOT have traditionally dominated the safe handling and distribution of imported LPG and related energy products.
With its new terminal in Vipingo, Kilifi County, boasting a storage capacity of 10,000 metric tons, Lake Gas has positioned itself as a serious contender. It is now competing directly with AGOL, which operates a 25,000-ton facility, and SOT, which links to five storage facilities with a combined capacity of 2,335 tons.
Lake Group’s LPG reach extends regionally
Since founding Lake Group in 2006, Awadh has transformed it from a small fuel distribution firm in Tanzania into a regional energy powerhouse. The group now runs more than 400 fuel tankers and several terminals across East Africa. Through Lake Gas, it has become one of the region’s largest suppliers of LPG.
In June, Lake Gas received its first shipment of cooking gas from Nigeria at the new Vipingo terminal — a $60 million project that has faced scrutiny from local residents and county officials. Critics allege that some environmental and procedural approvals were not properly obtained during construction.
Kenya LPG milestone reached amid permit dispute
Despite the controversy, the company achieved a key milestone with the safe discharge of 11,474 metric tons of LPG from Nigeria. The Vipingo terminal uses an offshore Conventional Buoy Mooring (CBM) system located about one kilometer off the coast to offload gas, which is then piped and stored onshore.
Although the National Environment Tribunal revoked the project’s Environmental Impact Assessment (EIA) permit earlier this year, Lake Gas has pressed ahead with its plans. The company is betting on its infrastructure, regional presence, and growing import capacity to challenge Kenya’s established LPG importers.
Credit:billionaire Africa
