Lake Gas gains foothold in Kenya’s cooking gas market

Tanzanian oil marketer, Lake Gas has captured a 2% share of Kenya’s imported cooking gas market, breaking into a sector long dominated by African Gas and Oil (AGOL), according to the Energy and Petroleum Regulatory Authority (Epra).

AGOL, alongside the Shimanzi Oil Terminal (SOT), holds a commanding 94.56% of the market, but Lake Gas’s entry signals increasing competition that could lower prices for consumers.

Lake Gas, part of the Tanzanian-based Lake Group founded by tycoon Ally Edha Awadh, began handling liquefied petroleum gas (LPG) this year through its newly completed 10,000-tonne terminal in Vipingo, Kilifi County.

In contrast, AGOL’s facility in Mombasa boasts a capacity of 25,000 tonnes, while SOT connects to five storage facilities with a combined capacity of 2,335 tonnes. Together, Mombasa and Kilifi’s LPG import infrastructure totals approximately 37,335 tonnes, Epra reports.

AGOL, owned by Mombasa-based businessman Mohamed Jaffer, has controlled over 90% of Kenya’s imported gas market for years. However, Lake Gas’s entry, alongside other emerging players, is poised to disrupt this dominance. Epra data indicates that the remaining LPG imports enter Kenya via trucks from Tanzania through border points at Namanga (2.75%), Loitoktok (0.57%), and Lunga Lunga (0.10%).

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The increased competition is already driving down costs. “You can already see that just because of increased terminals, competition has started to lower gate prices of LPG,” said Daniel Kiptoo, Epra’s Director General. Wholesale LPG prices in Mombasa have dropped to an average of Sh83 per kilogramme last month, down from Sh100 in January 2025, attributed to Lake Gas’s market entry and declining global LPG prices.

Lake Gas is not stopping at its current facility. The company plans to construct a second terminal in Vipingo with a capacity of 15,000 tonnes, bringing its total capacity closer to AGOL’s. This expansion is expected to challenge AGOL’s grip on the market further and increase Lake Gas’s share of Kenya’s cooking gas imports.

Other players are also entering the fray. Taifa Gas, owned by Tanzanian tycoon Rostam Aziz, has been cleared to build a 25,000-tonne terminal in Dongo Kundu, while Kenya Pipeline Company has partnered with Nigeria’s Asharami Energy to develop a 30,000-tonne facility in Changamwe. These developments signal a shift toward a more competitive LPG market, which could reduce handling fees and wholesale prices, ultimately making cooking gas more affordable for low-income households.