Kenya Blocks Docking For Unsafe Cooking Gas Cargo Linked To Tanzanian Tycoon

KEBS Rejects 12,000-Tonne LPG Shipment Over Missing Safety Chemical

Kilifi County – Kenya’s regulatory authorities have blocked the distribution of a massive cooking gas shipment imported by Lake Gas Limited, a company owned by Tanzanian billionaire Ally Awadh, after discovering critical safety deficiencies that could have exposed consumers to deadly risks.

The Kenya Bureau of Standards (KEBS) rejected the entire 12,000-metric-tonne liquefied petroleum gas (LPG) consignment following tests that revealed dangerously low levels of ethyl mercaptan, a crucial odorant that enables users to detect gas leaks and prevent potential explosions.

Safety crisis averted

In a letter dated June 12, 2025, KEBS Coast regional manager Hilda Keror declared the shipment unfit for consumer use, stating that “the ethyl mercaptan levels is still below the required limits specified in KS 91:2022 Kenya Standard Liquefied Petroleum Gas-Specification.”

The absence of adequate ethyl mercaptan—which produces the distinctive “rotten egg” smell associated with gas leaks—would have made it nearly impossible for consumers to detect dangerous leaks, potentially leading to fatal explosions and injuries from faulty containers.

“Consequently, the entire consignment stands rejected until and when it will be confirmed through independent testing by KEBS that the odorant level is within the limits specified in KSN 91:2022,” Keror’s letter emphasized.

Lake Gas Limited is owned by Ally Awadh, one of Tanzania’s most prominent businessmen and founder of the Lake Oil Group conglomerate.

The 36-year-old entrepreneur has built his company into what he claims is a $1 billion revenue enterprise, making him one of East Africa’s most influential energy sector players.

Awadh’s entrepreneurial journey began unconventionally—flipping burgers at McDonald’s in Canada while studying at Brock University.

After his father refused to provide him pocket money, he founded Lake Oil Group in 2006 at age 27, eventually building it into Tanzania’s largest petroleum products distributor with over 85 petrol stations and a fleet exceeding 700 trucks.

The rejected shipment represents Lake Gas’s maiden cargo to be handled at its newly completed 22,000-tonne facility in Kilifi County, marking Awadh’s ambitious attempt to penetrate Kenya’s lucrative cooking gas market.

Lake Gas’s entry into Kenya is strategically positioned to challenge the dominance of Africa Gas and Oil Limited (AGOL), owned by Mombasa-based tycoon Mohammed Jaffer, which currently handles nearly 90 percent of Kenya’s LPG imports through its 25,000-tonne Mombasa facility.

Kenya’s cooking gas consumption reached a record 413,960 tonnes in 2024—a 14.8 percent jump from 360,590 tonnes in 2023—as households, institutions, and businesses increasingly adopt LPG as their preferred cooking fuel.

The government has been encouraging new players like Lake Gas to help reduce handling fees and lower retail prices.

Mounting controversies

The safety rejection adds to growing controversies surrounding Lake Gas’s Kenyan operations.

The company faces an ongoing lawsuit over alleged inadequate public participation during the planning of its Kilifi facility, while its environmental permit was revoked by a tribunal in April following similar complaints about insufficient community consultations.

Senior marine pilots at Kenya Ports Authority had also questioned the timing of Lake Gas’s maiden shipment, warning about intense ocean currents between May and September that significantly hamper navigation and mooring safety for approaching vessels.

This incident echoes previous diplomatic tensions between Kenya and Tanzania over LPG safety.

In July 2017, Kenya banned cooking gas imports from Tanzania, citing safety concerns about adulterated products transported by road through bulk trucks. The dispute highlighted ongoing regional challenges in energy trade regulation and safety standards.

The KEBS rejection demonstrates Kenya’s commitment to maintaining strict safety standards in the energy sector, particularly as LPG adoption accelerates across the country.

The discovery of substandard gas could have had catastrophic consequences for Kenyan consumers, highlighting the critical importance of regulatory oversight in cross-border energy trade.