Taifa Gas Terminal at Dongo Kundu Hits 80 Percent Completion Ahead of March Opening

Construction of the Taifa Gas LPG terminal within the Dongo Kundu Special Economic Zone (SEZ) in Mombasa has entered its final stages. Recent site inspections and government briefings confirm that the project is now 80 percent complete. The facility is expected to be fully operational within the next two months, marking a significant addition to the energy infrastructure in the Coast region.

The project involves the development of a 30,000-metric-ton liquefied petroleum gas (LPG) storage and distribution hub. This capacity is designed to stabilize the domestic supply of cooking gas while positioning Kenya as a primary transit point for fuel products moving into the broader East African hinterland. Investment Cabinet Secretary Salim Mvurya recently noted that the scale of the terminal will allow for larger bulk imports, which typically influences the cost-efficiency of the local supply chain.

The location of the terminal within the Dongo Kundu SEZ is a strategic choice influenced by its proximity to the Port of Mombasa. This positioning allows for direct offloading from gas tankers, reducing the logistical bottlenecks often associated with road transport from existing berths. The Special Economic Zones Authority has indicated that the development of such supportive infrastructure is a priority to ensure the ease of movement for industrial goods.

Beyond the immediate storage tanks and piping, the project includes specialized jetty infrastructure currently under construction at the port. These marine works are essential for the vessel-to-shore transfer of LPG. Engineers on site are focusing on the integration of these systems to meet the March 2026 operational deadline. The facility is expected to support the national policy of transitioning households away from biomass fuels like charcoal and firewood towards cleaner energy alternatives.

Government officials have stated that the focus for the Dongo Kundu zone is now shifting toward full occupancy. Following the completion of the Taifa Gas terminal, other export-oriented manufacturing and value-addition projects are expected to follow. The broader master plan for the SEZ involves phased rollouts over the next five years, aimed at attracting investors who require direct access to international shipping lanes.

The terminal enters a market where LPG demand has been steadily rising over the last decade. By increasing the national storage reserve by 30,000 metric tons, the facility provides a buffer against global supply chain disruptions. This increase in physical infrastructure is part of a wider effort to modernize Kenya’s energy handling capabilities, ensuring that the infrastructure keeps pace with the growing urban and industrial consumption rates.