The construction of a Sh16 billion liquefied petroleum gas (LPG) plant by Tanzanian-owned Taifa Gas Investments SEZ Ltd in Dongo Kundu, Mombasa, has been halted by a Kenyan court due to concerns over environmental damage.
The ruling, delivered by the Environment and Land Court, is a major setback for the ambitious project, which aimed to transform East Africa’s energy sector. Local residents and environmentalists have hailed the decision, while Taifa Gas faces mounting scrutiny over its compliance with environmental regulations.
In May 2025, two Likoni residents, Mohamed Karungu and Raphael Nyiro, filed a petition against Taifa Gas, alleging that the 30,000-tonne LPG facility threatened Mombasa’s delicate coastal ecosystem.
The petitioners claimed the project involved clearing indigenous trees and excavating land, risking soil erosion and disruption of coral formations critical to marine life.
They further argued that the proposed pipeline could harm water quality and local fishing grounds, a vital livelihood for the community.
The court’s ruling cited potential environmental damage, ordering a suspension of construction pending further review.
Taifa Gas, led by Tanzanian billionaire Rostam Aziz, had positioned the project as a game-changer for Kenya’s energy market. Launched in February 2023 with President William Ruto in attendance, the plant promised to lower LPG prices and challenge the dominance of Africa Gas and Oil Ltd.
The company claimed compliance with environmental standards, but critics, including the National Environment Management Authority (NEMA), flagged inadequate public consultation and missing permits.
Locals have fuelled the debate, with some labelling the project a “ticking environmental bomb” due to its proximity to Mombasa’s port. The court’s decision has sparked broader questions about balancing economic growth with environmental protection.
Taifa Gas projected the creation of 90,000 jobs, a key selling point for the Dongo Kundu Special Economic Zone. However, environmentalists argue that unchecked industrial projects could devastate Mombasa’s biodiversity.
The case, set for further hearing in July 2025, has drawn attention to Kenya’s environmental laws, with petitioners demanding restoration orders and compensation for alleged ecological harm.
As Taifa Gas navigates this legal hurdle, the project’s future remains uncertain. The ruling depicts Kenya’s growing emphasis on sustainable development, leaving stakeholders to wonder whether Taifa Gas can address environmental concerns and resume its bid to reshape East Africa’s energy landscape.