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Legal dispute threatens Tanzanian billionaire Rostam Aziz’s Mombasa LPG project

Rostam Aziz’s Mombasa LPG project faces court challenge over alleged environmental harm, coral disruption, and lack of community consultation.

Legal dispute threatens Tanzanian billionaire Rostam Aziz’s Mombasa LPG project
Rostam Aziz

Table of Contents


Key Points

  • Rostam Aziz’s Mombasa gas project faces court challenge over alleged environmental violations and lack of public consultation.
  • Petitioners claim land clearing for the LPG terminal threatens coral reefs, marine life, and local fishing livelihoods.
  • Court sets July 29 hearing; Taifa Gas accused of bypassing Nema approvals and ignoring constitutional safeguards.

Tanzanian billionaire Rostam Aziz is facing fresh legal hurdles over his ambitious LPG project in Mombasa. A dispute has emerged over the construction of a 30,000-tonne liquefied petroleum gas (LPG) terminal in Dongo Kundu, Likoni, where two residents have filed a petition against Taifa Gas Investments SEZ Ltd, a company linked to Aziz, citing environmental concerns.

The petitioners, Mohamed Karungu and Raphael Nyiro, argue that the project poses a serious risk to the surrounding environment and violates their constitutional right to a clean and healthy ecosystem. They claim that the clearing of vegetation would disrupt coral formations and damage the local biodiversity.

Mombasa residents fight environmental threat

On May 15, Justice James Olola declined to issue a temporary order halting construction. Instead, he instructed that the application be served to Taifa Gas Investments SEZ Ltd and set the next hearing for July 29. “The petitioners aver that clearing the vegetation will interfere with the coral rock and will negatively affect the ecosystem around the land,” the suit reads in part.

In their case before the Environment and Land Court in Mombasa, the residents say the planned works, including the removal of indigenous trees and excavation of the land for gas tanks, would amount to environmental degradation. They want the court to block any activity at the site until the company complies with key constitutional provisions, including those on public participation, land rights, and environmental protection.

Petition targets environmental clearance process

The petition further alleges that the company began clearing trees and preparing the land without consulting the local community or compensating those who could be affected. They also warn that the planned pipeline could stir up sediments in the ocean, reducing water quality and limiting sunlight from reaching marine life.

According to the residents, the pipeline would also disrupt fishing grounds that many locals depend on for their livelihood. They have included the National Environment Management Authority (Nema) as an interested party in the case and insist that Taifa Gas has not secured the necessary permits from Nema or other government bodies. “If any of such approvals exist, they were granted without proper notice, consultation, or participation from those directly impacted,” the petitioners argue.

They also claim that the company has failed to uphold its constitutional obligations to protect the environment and work with state institutions to ensure that natural resources are used sustainably. “The proposed activities are also devoid of public participation by the petitioner, who is directly affected by the proposed activities,” the filing states.

Aziz’s Taifa Group eyes regional growth

Rostam Aziz has long been one of East Africa’s leading businessmen. He made headlines in 2013 when Forbes named him Tanzania’s first dollar billionaire. Over the years, he has built a diverse empire that spans telecommunications, mining, real estate, aviation, and energy. His holding company, Taifa Group, now controls assets across sectors including solar power, manufacturing, logistics, and agro-trading.

In December 2023, Aziz expanded his reach into Kenya with the launch of a massive cooking gas facility in Mombasa, valued at Ksh300 billion ($1.9 billion). The project, located in the Dongo Kundu Special Economic Zone, marks a major step in Taifa Gas’s efforts to grow beyond Tanzania and establish a strong presence across East Africa.

Once completed, the plant is expected to use modern technologies to help bring down the cost of cooking gas for Kenyan households. The move also puts Aziz in direct competition with longtime Mombasa-based industrialist Mohamed Jaffer, whose company, Africa Gas and Oil Ltd., currently dominates Kenya’s LPG import market.

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