President William Ruto is expected to launch the construction of the Taifa Gas LPG terminal in Mombasa today, a project that aims to lower the cost of cooking gas in Kenya.
The terminal, which will have a capacity of 30,000 tons of LPG, is owned by Tanzanian business magnate Rostam Aziz.
Taifa Gas is Tanzania’s largest LPG supply company and has been feeding the Kenyan retail market via road.
Kenya imported 240,000 tons of LPG in 2022, up from 180,000 tons in 2021, according to Energy Regulatory Commission (ERC) data. LPG demand has been steadily increasing as more households switch from charcoal and kerosene to gas.
However, many consumers have been put off by the high cost of LPG.
Cooking gas prices in Kenya may rise by as much as KES 400 for a 13-kilogramme cylinder as companies begin to adjust their rates, citing higher global commodity costs and a weakening Kenyan shilling against the dollar.
A quick check at Nairobi retailers reveals that Total Energies is refilling the 6kg gas cylinder for KES 1,540 and the 13kg cylinder for KES 3,330.
The Taifa Gas LPG terminal is expected to lower these costs by eliminating road transport fees and increasing supplier competition.
The project will also allow Kenya to export LPG to neighboring countries like Uganda, Rwanda, and Burundi.
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