Tanzanian tycoons Ally Edha Awadh and Rostam Aziz are targeting Kenya’s cooking gas market after their firms overcame year-long legal hurdles that had stalled expansion.

Mr Awadh’s Lake Oil and Gas company in Kilifi was the latest to secure approval to expand after a court upheld its Environmental Impact Assessment (EIA) licence.

This followed a ruling striking out a petition against Mr Aziz’s Ksh16 billion ($124 million) Taifa Gas liquefied petroleum gas (LPG) terminus in Mombasa.

The Malindi Environment and Land Court confirmed Lake Gas had complied with all requirements under the Environmental Management and Coordination Act (EMCA), ending more than six months of delays.

The ruling positions Mr Awadh as a serious contender in Kenya’s LPG market, alongside Mr Aziz, who is still grappling with legal challenges over his Mombasa project.

The decisions are crucial as Tanzanian oil firms seek to expand, threatening the dominance of African Gas and Oil Company (AGOL), owned by Mombasa tycoon Mohammed Jaffer, which has handled up to 90 percent of imports with its 10,000-tonne facility.

In June, Mr Awadh pressed ahead with operations at his $60 million Vipingo facility after receiving its first shipment of 10,000 tonnes from Nigeria, despite regulatory uncertainty. The terminal uses an offshore Conventional Buoy Mooring system to offload gas, piped and stored onshore.

Lake Gas Vipingo General Manager Morris Mutiso said the ruling guarantees reliable supply. “We welcome the clarity brought by this judgement and underscore the need for legal reforms to shield strategic projects from attempts to block competition.“Lake Gas remains committed to environmental responsibility, compliance, community engagement and operational safety,” Mutiso said in a statement.

Mr Awadh said the Vipingo terminal launch was a turning point: “It boosts Kenya’s LPG import capacity and shows our commitment to making clean energy more accessible.”The new terminal positions Lake Gas as a serious contender in Kenya’s LPG market, though controversy persists over environmental safety and community rights.

The Tribunal revoked its EIA permit in December 2019, citing inadequate public participation. Lake Gas has appealed, while critics accuse the Energy and Petroleum Regulatory Authority (EPRA) of failing to enforce the halt order.

Residents petitioned against the project, citing safety risks. On 10 March 2025, the Tribunal fined Lake Gas and partner Vipingo Development Limited $155,000 for defying a construction halt. Allegations also surfaced that approval procedures were not properly followed.

Meanwhile, Taifa Gas’s project at Likoni’s Dongo Kundu Special Economic Zone is progressing after a November court ruling struck out a petition against its Ksh16 billion $124 million) terminus. Mr Aziz hailed the decision as a milestone for Kenya’s energy transition.“Our 30,000-tonne LPG terminal will expand access to clean energy, enhance stability and create new pathways for prosperity,” he said. He added that Taifa Gas’s sustainability commitment extends to improving livelihoods, especially for women around the project.

Mr Aziz said the ruling strengthens confidence in Kenya’s environmental governance and balances justice with development. He argued the project is about unlocking regional energy resilience, positioning Kenya as a key LPG hub.

Taifa Gas, Tanzania’s largest dealer, was licensed in 2023 to set up facilities at Dongo Kundu, in an event witnessed by President William Ruto. Its entry into Kenya was part of a 2022 trade deal signed by then-President Uhuru Kenyatta and Tanzania’s President Samia Suluhu.

Last year, Kenya moved LPG to the Open Tender System (OTS), aiming to raise annual uptake from 7kg per capita to 15kg and penetration from 24 percent to 70 percent by 2028. The OTS is designed to lower consumer prices and reduce carbon emissions.

The system, similar to petroleum imports before the government-to-government deal, sets prices based on import costs, market rates and currency components, with bidders competing to offer lower prices. This contrasts with the current system, where importers set their own mark-ups, exposing consumers to high costs.

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