A major liquefied petroleum gas (LPG) storage facility being developed by a Tanzanian investor at the Mombasa Special Economic Zone (SEZ) has reached 85 per cent completion.
The facility, which is expected to be commissioned in the fourth quarter of 2026, will have a total storage capacity of 30,000 metric tonnes once completed.
Transport Principal Secretary Mohamed Daghar said the project is the first of its kind in Kenya and the largest LPG facility in the region.
“This is the first investor who has set up their LPG plant. This is Taifa Gas, an investor from Tanzania, who has set up 12 LPG tanks. Each tank has a capacity of 2,500 metric tonnes, bringing the total capacity to 30,000 metric tonnes,” Daghar said.
Daghar said the facility would allow LPG to be purchased in bulk, stored and distributed locally and to neighbouring countries, potentially reducing the cost of gas for consumers.
“The cost of energy in this country has been high. Through initiatives like this, we are going to see the cost of gas come down because gas will be bought in bulk, stored here and distributed not only to the country but also to our neighbours,” he said.
Daghar spoke on Thursday while inspecting the progress of the Mombasa SEZ, where several investors are establishing industrial facilities.
He said the development of the LPG facility would directly benefit consumers while also strengthening Mombasa’s position as a regional energy and trade hub.
Kenya Ports Authority Managing Director Captain William Ruto said the project had already created more than 500 employment opportunities, with additional jobs expected once the facility becomes operational.
“The employment opportunities they have already created are more than 500, and by the time the project is complete, we expect more employment opportunities for locals,” Ruto said.
He added that local workers would also receive training and gain expertise in handling LPG.
Ruto said the size of the facility would enable Kenya to benefit from economies of scale, which could contribute to lower LPG prices.
Taifa Gas Project Manager Mohamed Rad said construction works had reached an advanced stage, with most mechanical works completed and equipment already available.
“We have reached 85 per cent completion of the project. Most of the mechanical completion is done, all equipment is available, procurement has been finalised, and we are heading towards commissioning the project in the fourth quarter of 2026,” Rad said.
The facility is among several investments currently being developed at the Mombasa Special Economic Zone as the government seeks to attract industries and expand employment opportunities in the region.