Kenya backs Rostam's $130 million Taifa Gas terminal, clearing way for Africa’s largest LPG facility

With the ruling, an earlier temporary order restraining Taifa Gas Investments SEZ Ltd from continuing construction of the project now lapses.

Reacting to the decision, Mr Aziz said in a statement at the weekend that his company welcomed the judgment in Petition No. E006 of 2025, describing it as a vindication of both due process and environmental compliance.

“This ruling is not only a vindication of our commitment to due process and environmental responsibility, but also a milestone for Kenya’s energy transition. Our 30,000-metric-tonne LPG terminal, the largest in Africa, will expand access to clean energy, strengthen regional energy stability, and create new pathways for prosperity,” he said.

Mr Aziz said that the company’s sustainability efforts extend beyond energy infrastructure.

 “Alongside delivering clean energy solutions, we are committing to improving livelihoods, especially for the women living in communities around the project. Empowering women economically is central to ensuring this project delivers long-term, inclusive impact,” he noted.

Justice Kibunja emphasised jurisdictional discipline, observing that both the National Environment Management Authority (Nema) and the National Environment Tribunal (NET) had previously validated the project’s environmental approvals. The Court also noted that the petitioners were members of the same Likoni community that had earlier raised similar issues before NET in 2022.

By upholding the preliminary objection, the Court established an important precedent on the finality of environmental approvals, ensuring that legally sanctioned projects cannot be subjected to repeated litigation through recycled petitions. The ruling boosts investor confidence and reinforces Kenya’s efforts to balance environmental justice with sustainable development.

“We appreciate the Court’s clarity, which allows us to move forward with full focus on safe, sustainable delivery,” said Taifa Group General Counsel, Dr Timothy Kyepa. “It demonstrates that when investors follow the law and uphold environmental safeguards, Kenya’s institutions will provide certainty and protection. This is good for justice, good for business, and good for sustainable development.”

The Dongo Kundu LPG terminal is expected to shore up Kenya’s energy security, promote clean cooking solutions, and generate significant employment opportunities. It is also poised to enhance competition in the LPG market, reduce fuel costs, and stabilise supply in line with the National Energy Policy (2018).

Kenya aims to raise LPG penetration from 24 percent to 70 percent by 2028 as part of its clean-cooking strategy under the Ministry of Energy. The 30,000-tonne storage capacity at the new terminal is expected to ease import bottlenecks, reduce price volatility, and ensure consistent supply. The facility further strengthens cross-border energy cooperation between Kenya and Tanzania, aligning with the objectives of the African Continental Free Trade Area (AfCFTA) and the East African Community (EAC).

“This project is not just about infrastructure; it’s about unlocking regional energy resilience. The Dongo Kundu terminal will position Kenya as a key LPG hub for East Africa,” Mr Aziz said.

Taifa Group, founded by Mr Aziz, is a diversified East African conglomerate with interests in energy, telecommunications, logistics, mining, agriculture and manufacturing. Through its subsidiary, Taifa Gas Investments SEZ Ltd, the Group is undertaking what is considered one of Kenya’s largest LPG infrastructure investments, with the goal of lowering energy costs and supporting long-term economic growth.

The ELC further ruled that the petition was res judicata, noting that the issues and parties were identical to those involved in earlier NET appeals. Justice Kibunja held that the petitioners’ claims were not constitutional grievances but rather a challenge to the company’s EIA licence—an issue legally within NET’s jurisdiction.

The Court also found that the petitioners had presented no documentary evidence to rebut the approvals and licensing documents submitted by Taifa Gas.

 “The court therefore has no reasons or basis upon which to fault the process undertaken by the respondent and approvals obtained in respect of their LPG project,” the ruling stated.

The judge ruled that, as NET is the competent forum for appeals relating to EIA licences issued by Nema, the case before the ELC had been filed prematurely.