Taifa Gas SEZ Ltd has started the construction of a liquefied petroleum gas (LPG) storage facility in Mombasa.
The Tanzanian-owned firm begun putting up the 30,000-ton capacity facility at the Dongo Kundu Special Economic Zone.
How Taifa Gas will change Kenya’s economy
Managing Director Veneranda Masoum said the project will not only help in solving the issues in Kenya’s fuel sector but also create employment for Kenyans, thus boosting the economy, the Citizen reported.
“This is a substantial investment that will not only address a gap in Kenya and the regional gas market but will also create many jobs and sustain livelihoods in the region. We expect 90,000 direct and indirect jobs would be created by this investment when we start the downstream retail operations.”
Taifa Gas operates in Kenya, Uganda, Rwanda, Burundi, Zambia, DRC, Tanzania, and South Africa. Its entry into the Kenyan market was delayed by controversy over approvals and a tussle with squatters and landowners.
The Kenya Ports Authority (KPA) Managing Director William Ruto said the project, four kilometres from the port, was among the investments given the green light.
He stated that,
“A recent visit toDongo Kundu showed a beehive of activities with one investor already on the ground building an ultra-modern 30,000 tonnes LPG facility, which will be constructed underwater line from KOT II to their storage facility 4 kilometres away from the port.”
LPG gas prices in Kenya
Kenyans enjoyed a slight drop in LPG gas prices this year around August following the government’s removal of taxes on the product.
Nairobi residents saw the refill prices of 6kg cylinders drop below Ksh1,000. The reduction in cost was also experienced in other parts of the country.
However, the prices reverted back to the initial cost after a few weeks dimming the hope of many Kenyans for long-term reduced gas prices.
In February 2023, President Ruto presided over the ground-breaking ceremony of the Taifa Gas Special Economic Zone Limited in Mombasa, terming it a historic milestone “on our journey to achieve self-sufficiency in clean, green energy”.
Ruto added that,
“It is time for this country to get aboard the agenda for environmental consciousness and ecologically sustainable practices…This is a critical component of our commitment to deliver rapid socioeconomic transformation through clean, green growth.”
The president had Kenyans excited when he said he plans to have Kenyans refill gas cylinders at Ksh 500 or even Ksh 300. He later changed his statement saying he was referring to the cylinder itself and not the LPG gas.
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