Tanzanian firm building Sh19b gas facility at port

The Tanzanian-owned firm has begun to construct a liquefied petroleum gas (LPG) storage in Mombasa.

Taifa Gas SEZ Kenya Ltd is putting up a facility with a capacity of 30,000 tons at the Dongo Kundu Special Economic Zone.

"This is a substantial investment that will not only address a gap in Kenya and the regional gas market but will also create many jobs and sustain livelihoods in the region," said Managing Director Veneranda Masoum.

"We expect 90,000 direct and indirect jobs would be created by this investment when we start the downstream retail operations."

Taifa Gas operates in Kenya, Uganda, Rwanda, Burundi, Zambia, DRC, Tanzania, and South Africa. Its entry into the Kenyan market was delayed by controversy over approvals and a tussle with squatters and landowners.

The Kenya Ports Authority Managing Director William Ruto said the project, four kilometres from the port, was among the investments given the green light.

"A recent visit to Dongo Kundu showed a beehive of activities with one investor already on the ground building an ultra-modern 30,000 tonnes LPG facility, which will be constructed underwater line from KOT II to their storage facility 4 kilometres away from the port," said Ruto.

He said that KPA has already awarded a tender to a Japanese company to start the construction of the Dongo Kundu multipurpose berth for Sh42 billion.

The Japanese Government under JICA has been funding several projects at the port, including a 570-metre quay with 550,000 twenty-foot equivalent unit (TEU) capacity berths 20 and 21.

Japan also funded the construction of berth 22 with a quay of 300 metres long with 450000 TEU capacity. The SEZ project, implemented under KPA, was mooted in 2002 by the late President Mwai Kibakai government.

"The construction of Dongo Kundu multipurpose berth is expected to start early next year and will open up the Dongo Kundu Special Economic Zone, which has attracted many investors who want to build factories and other industries," said Ruto.

Other companies that have shown interest in the Dongo Kundu Special Economic Zone include those that tendered to run services at the ports of Mombasa, Lamu and Kisumu.

KPA said other investors in the area are expected to move on the ground early next year as more companies have shown more interest in the area.

At the same time, Ruto said tenders for leasing out some services at the port, which were to be opened after December 16, have been put in abeyance.

Ruto said KPA was partnering with shipping lines for the export of horticulture as opposed to using the expensive air transport, and would also support the International Maritime Organization in reducing carbon footprint emissions.