State Cancels Eleven Energy’s Mombasa Gas Plant Over Flawed Public Consultation

Court upholds tribunal decision that revoked EIA license for 15,000-tonne LPG depot citing inadequate community engagement

A Mombasa court has dealt a decisive blow to Eleven Energy Ltd’s ambitious plan to establish a major liquefied petroleum gas (LPG) storage facility in the coastal city, upholding a tribunal decision that cancelled the project’s environmental license over inadequate public participation.

The Environment and Land Court in Mombasa dismissed the petrochemical company’s appeal on June 12, affirming the National Environment Tribunal’s earlier ruling that revoked the Environmental Impact Assessment (EIA) permit for the proposed 15,000-tonne LPG depot in Changamwe area.

Justice Stephen Kibunja ruled that the tribunal was correct in finding that Eleven Energy Ltd and the National Environment Management Authority (NEMA) had failed to conduct proper public consultation before issuing the environmental license, a requirement under Kenya’s constitution and environmental laws.

“There is no evidence of adequate public participation before the issuance of the EIA licence to Eleven Energy Ltd,” Justice Kibunja stated in his judgment. “It would thus follow that there is no merit in the appeal hence the appellant is not entitled to the reliefs sought.”

The controversy began when local residents from high-density areas including Kibarani, Kipevu, Bahati, Chaani, and Lilongwe villages challenged NEMA’s decision to grant the environmental license.

They argued that the company had failed to carry out meaningful public consultation and that NEMA had not ensured proper community engagement before approving the project.

The residents also raised concerns about safety, security, and environmental risks, particularly given the facility’s proximity to densely populated residential areas.

## Legal Framework Upheld

The case highlights Kenya’s strengthened environmental protection laws, which mandate extensive public participation in projects that could significantly impact communities and the environment. Under the Environmental Management and Coordination Act (EMCA), developers must demonstrate meaningful community engagement before receiving environmental approvals.

Justice Kibunja emphasized that the tribunal was “entitled to consider the appellant’s compliance with the entire applicable legal framework including the Environmental Management and Coordination Act and regulations made thereunder on public participation.”

The judge rejected Eleven Energy’s argument that it had been unfairly treated, noting that the company “could not have been taken by surprise at the hearing because the respondents’ notice of appeal was clear that lack of adequate public participation was one of the grounds of appeal.”

## Growing Scrutiny of Energy Projects

The Eleven Energy case reflects increasing scrutiny of major energy infrastructure projects in Kenya, where environmental courts have become more vigilant about ensuring proper procedures are followed. Kenya’s National Environmental Tribunal has previously set aside licenses for major projects, including the Lamu Coal-fired Power Plant, citing violations of Environmental Impact Assessment regulations through inadequate public participation.

Eleven Energy had initially sought NEMA approval in February 2023 to construct the gas storage facility, submitting an Environmental and Social Impact Assessment Study Report for the proposed LPG bulk import and storage facility.

The proposed facility would have been a significant addition to Kenya’s LPG infrastructure, capable of storing 15,000 tonnes of liquefied petroleum gas for distribution across the region. However, the project’s failure to meet constitutional requirements for community engagement ultimately proved fatal to its approval.

## Implications for Future Projects

Legal experts say the ruling sends a strong message to developers that environmental procedures, particularly public participation requirements, must be rigorously followed. The decision underscores the constitutional principle that communities have a right to participate in decisions affecting their environment and livelihoods.

The case also demonstrates the effectiveness of Kenya’s environmental justice system, where affected communities can successfully challenge government approvals through the National Environment Tribunal and higher courts.

For Eleven Energy Ltd, the court decision represents a significant setback that will likely require the company to restart the entire environmental approval process if it wishes to pursue the project. This would involve conducting comprehensive public consultation meetings and addressing community concerns before resubmitting an application to NEMA.

The ruling comes at a time when Kenya is seeking to expand its LPG infrastructure to meet growing demand for cleaner cooking fuels, but the Eleven Energy case shows that development must proceed within proper legal and constitutional frameworks that respect community rights and environmental protection.

*The Energy and Petroleum Regulatory Authority and NEMA were contacted for comment but had not responded by press time.*