Oil & Gas

A Kenyan court has dismissed a legal challenge that sought to block the construction of a Ksh16.7 billion ($130.5 million) liquefied petroleum gas (LPG) terminal in Mombasa by Taifa Gas Investments SEZ Ltd, a company linked to Tanzanian billionaire Rostam Aziz. The suit, filed by two Likoni residents, alleged the project bypassed environmental protocols and public consultations. With the lawsuit now dropped, Taifa Gas can move forward with full-scale development of the strategic LPG facility.

The Environment and Land Court had previously declined to halt the project, and the case was abruptly withdrawn just days before a scheduled hearing on July 29. No explanation was provided for the withdrawal, but the move is seen as a major legal victory for Taifa Gas. The terminal will be built in the Dongo Kundu Special Economic Zone and is expected to feature a 30,000-tonne handling capacity, helping lower Kenya’s cooking gas prices.

Taifa Gas received its license in early 2023 after bilateral discussions between Tanzanian President Samia Suluhu Hassan and Kenyan President William Ruto. This terminal is viewed as a direct challenge to existing LPG giants like Africa Gas and Oil Ltd. Rostam Aziz’s entry into Kenya’s energy sector is intensifying regional competition, with 13 new firms now seeking similar licenses.

Besides strengthening East Africa’s energy supply chain, the project could transform Mombasa into a key regional export hub, serving Uganda, Rwanda, and the DRC. Aziz, Tanzania’s first dollar billionaire, is expanding his influence across the region not only through infrastructure but also via initiatives like his proposed $100 million East African Youth Talent Fund.