President William Ruto has arrived at the site of the Dongo Kundu Special Economic Zone where he will preside over the groundbreaking ceremony of Sh16 billion Taifa Gas Plant.
The 30,000 metric tonnes facility will be one of Kenya’s largest private sector investments in the recent past and among the first multi-nationals that have been allowed to set up base at the Dongo Kundu SEZ.
The entry of a multinational conglomerate from Tanzania into the Kenyan market is expected to shake up the energy industry forcing the prices downwards.
The company is investing USD130 million (Sh16 billion) in a Liquefied Petroleum Gas (LPG) import, storage and distribution plant.
President Ruto's government has allocated the company 30 acres of land from the 3,000 acres that have been set aside for the Dongo Kundu SEZ project.
Ruto is accompanied by two Coastal Governors Abdulswamad Nassir (Mombasa), and Fatma Achani (Kwale).
His Deputy, Rigathi Gachagua is also in attendance.
Cabinet Secretaries Salim Mvurya (Blue Economy), Moses Kuria (Trade), Education Principal Secretary Belio Kipsang (Education), and Kenya Ports Authority (KPA) acting managing director John Mwangemi are also in Ruto's meeting.
Others are MPs Mishi Mboko (Likoni), Mohammed Ali (Nyali), Feisal Bader (Msambweni) and Kenya Maritime Authority chairman Hamisi Mwaguya among others.
Last year, Taifa Gas conducted an impact assessment study at the site on its proposal to construct an LPG plant, storage terminal and related facilities.
The new plant is designed to store propane; butane and LPG mix of various grades for domestic, commercial and industrial use.
On Thursday, Taifa Gas Investment SEZ Limited managing director Veneranda Masoum said they expected to bring healthy competition in the gas industry in Kenya because of their lower prices
“What we are bringing to Kenya is the economies of scale. Our storage capacity means that we will be bringing in bigger vessels, which means that we can negotiate better prices for the LPG,” Masoum said.
“What I know is that we will be able to import in large quantities pushing the prices downwards and eventually the prices of LPG will go down substantially in Kenya.”
She spoke during a press conference in Mombasa.
Masoum said the project, which kicks off today is expected to take 12 months to be completed and eventually over 90,000 locals will be employed both directly and indirectly.
“This is a substantial investment that will not only address a gap in Kenya’s and the regional gas market but will also create many jobs and sustain livelihoods in the region. We expect 90,000 direct and indirect jobs will be created by this investment especially when we start the downstream retail operations,” she said.
