Tanzanian businessman Ally Awadh has made a significant move into Kenya’s energy sector through Lake Gas, a company under his Lake Group. With the launch of a new $60 million liquefied petroleum gas (LPG) terminal in Vipingo, Kilifi County, the company has already captured 2 percent of Kenya’s cooking gas market.
The terminal, which can store 10,000 metric tons of LPG, signals a shift in East Africa’s energy dynamics. It represents an effort to increase competition, stabilize supply and potentially lower the cost of cooking gas for millions of households. Kenya’s LPG sector has long been dominated by African Gas and Oil Ltd. (AGOL) and the Shimanzi Oil Terminal (SOT), which together control over 94 percent of the market. Lake Gas’ entry introduces new competition that could bring efficiency, innovation and more regional cooperation in the energy space.
Expanding Regional Energy Access Through Innovation
Lake Gas’ Vipingo terminal is part of a wider strategy to strengthen regional energy connectivity across East Africa. The facility uses a Conventional Buoy Mooring (CBM) system, located about one kilometer offshore, to receive LPG shipments safely. From there, gas is piped to onshore storage tanks before being distributed to various parts of Kenya and neighboring countries.
The company’s first shipment of 11,474 metric tons of cooking gas from Nigeria was safely received and stored earlier this year, marking a major operational milestone. Despite regulatory challenges and scrutiny from local residents and county officials, Lake Gas remains confident that its infrastructure will enhance Kenya’s ability to meet growing domestic demand for cleaner cooking fuel.
The Vipingo terminal is designed to handle large-scale imports efficiently, reducing Kenya’s dependence on existing terminals in Mombasa. This expansion could improve supply reliability and help reduce frequent shortages and price fluctuations that have affected the local LPG market.
Lake Gas’ investment also supports Kenya’s transition toward cleaner energy. By expanding the supply and distribution of LPG, the company contributes to the shift away from charcoal and firewood, both of which have negative environmental impacts. Affordable and reliable LPG access aligns with Kenya’s sustainability goals and the broader regional push for green energy adoption.
Lake Group’s Regional Footprint and Economic Impact
Founded in 2006, Lake Group has grown from a small fuel distribution company in Tanzania into one of East Africa’s major energy players. The group operates in Tanzania, Zambia, the Democratic Republic of Congo, Kenya and Burundi, and runs a fleet of over 400 fuel tankers and several energy terminals.
Through Lake Gas, the group has become a leading supplier of LPG across the region, improving access to clean energy and supporting industrial growth. The new terminal in Kenya not only strengthens the company’s regional presence but also creates jobs and business opportunities within Kilifi County. Local transporters, suppliers and service providers are expected to benefit from the increased activity around the facility.
However, the company’s journey in Kenya has not been without challenges. The National Environment Tribunal earlier revoked the project’s Environmental Impact Assessment (EIA) permit, citing procedural concerns. Local environmental groups have raised questions about compliance and potential ecological effects. Despite this, Lake Gas continues to engage with relevant authorities and communities, emphasizing its commitment to safety, transparency and sustainable operations.
Awadh’s approach has always focused on long-term growth and regional integration. By entering Kenya’s market, Lake Gas is positioning itself not just as a competitor but as a collaborator in developing a more connected and efficient East African energy network. This approach aligns with ongoing efforts by regional governments to enhance cross-border trade and energy cooperation.
A Step Toward Affordable and Sustainable Energy for East Africa
The expansion of Lake Gas into Kenya marks a defining moment for East Africa’s LPG sector. For Kenyan consumers, it holds the promise of increased supply, price stability and improved access to clean cooking gas. For the region, it symbolizes progress toward a more interconnected and competitive energy market.
Ally Awadh’s vision for Lake Group is centered on making energy accessible, affordable and sustainable. The Vipingo terminal stands as evidence of this commitment, reflecting both confidence in Kenya’s market potential and belief in the power of regional investment to drive change.
As Lake Gas continues operations in Kenya, its success could inspire more cross-border investments that strengthen Africa’s energy independence. With its modern infrastructure, regional experience and growing market share, the company is well positioned to play a major role in shaping East Africa’s energy future.
