A major investment in East Africa’s energy infrastructure is set to reshape the region’s liquefied petroleum gas (LPG) market, as Tanzanian energy company Taifa Gas nears completion of a new import terminal at Kenya’s Port of Mombasa.
The $124 million facility, located within the Dongo Kundu Special Economic Zone, is expected to significantly expand Kenya’s LPG storage capacity and improve the reliability of cooking gas supplies across East Africa. Once operational, the terminal will have the capacity to store 30,000 tonnes of LPG, with future expansion plans increasing capacity to 45,000 tonnes.
The project represents one of the largest private investments in Kenya’s energy sector in recent years and is expected to introduce greater competition into the country’s LPG import market. Additional storage infrastructure will allow larger import shipments, improve supply security and reduce the risk of fuel shortages caused by logistical disruptions.
Demand for LPG continues to grow rapidly across Kenya and neighbouring countries as governments encourage households to transition from traditional cooking fuels such as charcoal and firewood to cleaner energy alternatives. Increased adoption of LPG is viewed as an important step toward improving public health, reducing deforestation and lowering household emissions.
The new terminal is also expected to strengthen regional trade by supporting the distribution of cooking gas beyond Kenya’s borders. Its strategic location near the Port of Mombasa provides efficient access to inland markets across East and Central Africa, reinforcing Kenya’s role as a regional logistics and energy hub.
Construction of the terminal began in 2023 and faced several regulatory and legal delays before work resumed. With completion now in sight, industry stakeholders believe the additional import capacity will improve market efficiency while supporting the continued expansion of the region’s clean energy sector.
As Africa works to improve energy access and reduce dependence on traditional biomass fuels, investments in modern LPG infrastructure are becoming increasingly important. Projects such as the Mombasa terminal demonstrate how private sector investment can help strengthen energy security, support economic growth and accelerate the transition to cleaner household energy across the continent.
Suggested Image: The new LPG storage tanks at the Mombasa terminal or LPG storage spheres overlooking the Port of Mombasa.