Tanzania’s Taifa Gas to Enter Kenya LPG Market

Taifa Gas, Tanzania’s biggest gas dealer, is set to establish a plant within Kenya’s Export Processing Zone (EPZ), as part of a trade deal between Kenya and Tanzania.

Taifa Gas, which is owned by Rostam Aziz, a Tanzanian business magnate, has lower prices compared to brands sold by foreign and local monopolies operating in Kenya. The move is therefore expected to  trigger a fierce price war between Taifa Gas and local dealers.

During the recent bilateral trade negotiations between Kenya and Tanzania, Tanzania raised issues and difficulties experienced by Taifa Gas while investing in Kenya. Among those mentioned were delays in clearance of goods and cumbersome procedures by the Kenya Revenue Authority (KRA).

Taifa Gas, formerly Mihan Gas, is the largest LPG supply company in Tanzania, having built 35 plants and storage facilities in Tanzania’s mainland and Zanzibar.

In Kenya, LPG dealers recently increased the price of cooking gas by at least 15% to set what has been termed as outrageous prices.

A 6kg gas cylinder now retails at Ksh 1,500 to 1,650 while a 13kg cylinder is refilled at Ksh 3000 – 3,500.