President Ruto to commission Rostam Aziz's cooking gas plant


Friday February 24 2023

Taifa gas pix

The entry of Taifa Gas at a site in Dongo Kundu near the port of Mombasa is part of a trade deal between Kenya and Tanzania. FILE PHOTO | NMG

President William Ruto will Friday commission a multibillion-shilling cooking gas plant owned by a Tanzanian tycoon, a project that promises to bring competition in the sector and bring down consumer prices of the commodity.

The Energy and Petroleum Regulatory Authority (Epra) confirmed issuing the licence for the facility to be built by Taifa Gas, which billionaire businessman Rostam Aziz owns.

The facility will compete with Africa Gas and Oil Ltd (Agol), owned by Mombasa tycoon Mohamed Jaffer and is set to trigger price wars for handling and evacuating cooking gas from the ships to the mainland, allowing dealers to transfer the cost reliefs to consumers.

Taifa Gas is set to build a 30,000-tonne facility at the Special Economic Zone in Dongo Kundu, near the port of Mombasa. It was earlier estimated to cost $130 million (Sh16.25 billion). Agol, which is nearby, is a 25,000-tonne facility.

“Yes, we have already issued them the licence to build the plant. President William Ruto will grace the ground-breaking today,” Epra told Business Daily.

Read: Tanzanian tycoon gets nod for Kenya cooking gas plant

Construction of the Taifa Gas facility offers Kenya an opportunity to lower cooking gas costs in the absence of price controls.

LPG prices have hit new highs, with the 13-kilogramme container retailing at an average price of Sh3,266 in Nairobi, while the six-kilogramme one has crossed Sh2,000.

It is unclear what Agol charges oil firms for handling cooking gas, but the lack of other players in the business suggests a lack of significant competition that has kept the fees high.

Taifa Gas is Tanzania’s largest LPG supply company and has been feeding the Kenyan retail market via road.

Now, Mr Aziz is seeking a large share of Kenya’s LPG market.

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Beryl Onyango

Beryl Onyango is a CPA and economics degree holder who has dedicated her career to helping others navigate the complex world of finance. Beryl has spent the past 3 years working as a finance specialist in a fintech company and has 6 years of experience in finance, working with a diverse range of clients and industries. Beryl's expertise lies in budgeting, saving, investing, and retirement planning, but she also has a deep understanding of various other areas of finance. She is interested in financial technology and how it changes how we manage our finances. As a finance writer, Beryl has been sharing her insights and knowledge through her writing, covering various finance and personal finance topics. Her goal is to educate and empower individuals to take control of their finances and achieve their financial goals. In addition to her professional experience, Beryl is a lifelong learner, always seeking to expand her knowledge and stay up-to-date with the latest developments in finance. She is also a strong communicator, able to explain complex financial concepts in a clear and easy-to-understand manner. Beryl believes that financial literacy is the key to achieving financial success, and she is dedicated to helping others achieve their financial goals.

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