The Energy and Petroleum Regulatory Authority (EPRA) will be giving a licence to Tanzanian firm Taifa Gas Investment to construct a liquefied petroleum gas (LPG) import and storage terminal in Mombasa before the end of the year.
EPRA said it would review afresh an application by Taifa Gas after an earlier undisclosed “shortcoming” saw the firm denied a licence after influence from Mombasa-based businessman Mohammed Jaffer.
The firm, which is the largest LPG supplier in Tanzania, had earlier sent an environmental impact assessment study report to Nema for approval. Taifa’s entry into the Kenyan market promises a major disruption in the fast-growing and lucrative cooking gas supply chain that is dominated by a few firms.
In Tanzania, Taifa Gas currently sells a fully-filled six-kilogramme gas cylinder, together with a grill and burner at TSh40,000 (KES2,010). Such prices in Kenya could disrupt the market.
At the same time, Kenya and Tanzania agreed to start working on a gas pipeline from Dar es Salaam to Mombasa and later reroute to Nairobi. Dr Ruto said there was a need to expedite the gas pipeline project from Dar es Salaam to Mombasa as part of efforts to lower energy tariffs.
The move is seen as president Ruto's crackdown on Mohammed Jaffer & his dominance in LPG through ProGas.
Mohammed Jaffer has been the major Raila Odinga's campaign financier. Former Prime minister Raila Odinga with Mohamed Jaffer during the Celebrations to mark the 10th Anniversary in Mombasa Associate of Raila, Jaffer monopolized LPG & killed competition that’s how ProGas dominated the market. Jaffer last year stopped Tanzanian tycoon Rostam Aziz from putting the biggest gas plant in Mombasa as this would make him lose the monopoly & debt Kenyans cheap cooking gas.
Rostam Aziz personally narrated to President William Ruto how Mohammed Jaffer had blocked him from investing in Kenya by frustrating him with govt agencies as he enjoyed the handshake. He was in his inauguration and is one of the Key people that planned President Ruto's tour to Tanzania to seal the Pipeline deal. Taifa Gas will put the plant in Mombasa Aziz at President Ruto's inauguration