Kenya has frozen plans by a Tanzanian billionaire to set up a gas plant and storage facilities at the Mombasa port, threatening a trade spat between the two neighbouring countries.
The Energy regulator has declined to clear the application by Taifa Gas, which is owned by tycoon Rostam Aziz, citing risks to the environment posed by the 30,000-ton gas handling facility.
The entry of the business magnate, who was ranked the first dollar billionaire in Tanzania by Forbes in 2013, promised a vicious battle for control of the Kenyan cooking gas market that remains under the tight leash of Mombasa-based tycoon, Mohamed Jaffer.
The entry of Taifa Gas into Kenya is part of a trade deal between the countries signed between Kenyan President Uhuru Kenyatta and Tanzania’s Samia Suluhu last year.
The regulatory licence freeze risks reigniting the trade spat between Kenya and Tanzania that saw Dar es Salaam block Kenyan goods from accessing its market.
The billionaires’ fight pitting Mr Jaffer and Mr Aziz, 57, was expected to cut the cost of handling and evacuating cooking gas from the ships to the mainland, allowing dealers to transfer the cost relief to consumers. BY DAILY NATION