Kenya is set to strengthen its petroleum infrastructure with the construction of a 30,000-metric-tonne liquefied petroleum gas (LPG) storage and handling facility at the Kenya Petroleum Refineries Limited (KPRL) site in Changamwe, Mombasa.
The project, being undertaken by Asharami Synergy Limited, a subsidiary of Nigeria’s Sahara Group, will provide shared storage and handling services to oil marketing companies and other players in the LPG industry.
The facility is expected to improve the country’s capacity to receive, store and distribute cooking gas while strengthening supply reliability and supporting the government’s efforts to expand access to cleaner energy.
Speaking during the groundbreaking ceremony, Kenya Pipeline Company representative Tom Mailu said the investment would address the growing demand for LPG by providing infrastructure that supports efficient imports, storage and distribution.
He said the common-user model would allow different market participants to access the facility without having to invest in expensive standalone import and storage infrastructure.
Mailu said the project would also improve competition, increase supply chain efficiency and deliver better value to consumers.
KPRL Chief Executive Officer CPA Joseph Ndoti said the project followed a strategic directive issued by Kenya Pipeline Company on February 6, 2024, to identify a private sector investor to develop a bulk LPG facility at the refinery.
He said the process culminated in the signing of a land lease agreement on August 24, 2025, following consultations and approvals involving various government agencies.
Ndoti said KPRL would continue working with Asharami Synergy to facilitate the development of the facility, which he described as an important investment in affordable, clean and sustainable energy.
Asharami Synergy Managing Director Bayo Shotomi said the investment was expected to help lower gas prices for households, schools and hospitals while improving the security of LPG supply.
He said the project was aligned with the National LPG Growth Strategy, which seeks to increase the adoption of cooking gas and reduce dependence on firewood and charcoal.
Principal Secretary for Petroleum Phillip Kello Harsama said the government was committed to working with private investors to expand LPG infrastructure and accelerate the transition to clean cooking.
Harsama said the government was targeting to provide more than 10 million households with access to LPG by 2028.
He added that approximately 11,000 institutions, including schools, hospitals and prisons, were also expected to transition from biomass-based cooking to cleaner energy.
Energy and Petroleum Regulatory Authority Director General Eng. Edward Mwirigi Kinyua said LPG penetration currently stood at approximately 31 per cent of Kenyan households, leaving a significant proportion of the population dependent on traditional cooking fuels.
Kinyua said the government was targeting to increase household LPG adoption to 70 per cent, noting that indoor air pollution was responsible for an estimated 25,000 deaths annually in Kenya.
He said the regulator had introduced measures to expand the LPG market, including opening up opportunities for autogas and piped gas distribution.
KPRL Board Chairperson Lilian Bokeeye Mahiri-Zaja said the project demonstrated how public assets could be leveraged through private sector investment to strengthen national energy infrastructure.
She said the board expected the development to meet high standards of safety, environmental protection and regulatory compliance.
Nigerian High Commissioner to Kenya Ambassador Ibrahim Danlami said the investment reflected growing economic cooperation between Kenya and Nigeria and demonstrated the potential of African partnerships in advancing regional trade.
China CMC Engineering Company Limited has been appointed as the project’s contractor.
The facility’s location at KPRL offers proximity to the Port of Mombasa and Kipevu Oil Terminal 2, providing strategic access to import and distribution infrastructure.
