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Logistic Firm To Build A Ksh354.25 Million Lpg Storage Facility In Kipevu

factory
Apr 08, 2025
Article Source LogoConstruction Review
Construction Review

Focus Container Freight Station Limited, a logistics firm associated with Mombasa businessman Faisal Abass, is planning to invest KSh354.25 million in developing a new liquefied petroleum gas (LPG) storage facility in Kipevu, Mombasa.

The facility will have a total storage capacity of 15,000 metric tonnes.

It will consist of six mounded LPG spheres, each with a 2,500 metric tonne capacity.

The plant will sit on five acres of land near the Kenya Ports Authority premises and will include other infrastructure such as offices, truck loading bays, fire control systems, and utilities.

The firm has submitted its proposal to the National Environment Management Authority (Nema) for approval.

This move is part of the firm’s strategy to tap into Kenya’s growing LPG market, which has been expanding as more households shift from using charcoal and kerosene to cleaner cooking fuels.

Focus Container Freight Station Limited has submitted a proposal to the National Environment Management Authority (Nema) outlining its intention to develop a bulk LPG storage facility with a capacity of 15,000 metric tonnes.

The facility will feature six mounded spheres, each capable of holding 2,500 metric tonnes of LPG. The company said in a regulatory filing:

“The proposed project aims to build a 15,000 metric tonnes bulk LPG storage facility with six mounded LPG spheres, each with a capacity of 2,500 metric tonnes.”

The project is set to occupy five acres of land strategically located near the Kenya Ports Authority infrastructure in Kipevu. In addition to the storage spheres, the facility will comprise essential infrastructure including a loading gantry, hydrant location, internal piping systems, a weighbridge, an administration office, and other supporting infrastructure. The estimated investment for the project stands at KSh354.25 million.

READ ALSO: Kenya’s Government Sidelines State-Owned Company in the Construction of Mombasa’s Cooking Gas Plant

The company plans to make the facility a major player in Kenya’s LPG supply chain. It will use its strategic location at the port to speed up imports and distribution. This setup will ease pressure on inland depots and could help stabilise prices.

This venture comes at a time when Kenya’s LPG market is expanding rapidly, driven by rising demand for clean cooking energy alternatives. More households are adopting gas over traditional fuels like firewood, kerosene, and charcoal—especially in urban and peri-urban areas.

The government has also shown commitment to promoting cleaner energy use, scrapping some taxes on LPG to encourage adoption. This has opened up the market for new players and investments, particularly in infrastructure to support efficient storage and distribution.

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