Kenyan lawmakers are demanding answers over the government’s decision to award a Sh17.7 billion liquefied petroleum gas (LPG) storage and handling project in Mombasa to Asharami Synergy, a Nigerian firm and subsidiary of Sahara Group. The deal has drawn parallels to the controversial Adani agreement, with senators questioning why the project was removed from the Kenya Pipeline Company (KPC) and handed to a private foreign entity.
Initially, KPC had proposed the construction of a 30,000-metric-tonne LPG facility near the Kipevu Oil Terminal. Pakistani firms R&E Modern Technologies and Petrochem Engineering Services had been listed as consultants, and the estimated cost stood at Sh17.73 billion. However, the project’s control shifted to Kenya Petroleum Refineries Limited (KPRL), which then awarded the contract to Asharami Synergy under a 31-year lease.
Energy Cabinet Secretary Opiyo Wandayi, appearing before the Senate Energy Committee, defended the move, citing Cabinet approval and a strategic directive involving several government institutions, including KPC, the KPRL Board, the National Land Commission, and the National Treasury. Wandayi maintained that the leasing of the 23.19 acres of public land followed proper procedures under Section 114A of the Public Procurement and Asset Disposal Act and in accordance with Treasury Circular Number 1 of 2025.
Six companies were initially invited to bid, including Total Energies, Rubis Energy, Galana Energies, Gulf Energy, Vivo Energy, and Asharami Synergy. Only Asharami and Gulf Energy submitted proposals, with Asharami emerging as the preferred bidder after evaluation.
Despite government assurances, lawmakers remain unconvinced. Busia Senator Okiya Omtatah demanded full disclosure of all proposals and questioned the transparency of the procurement process and the rationale behind leasing public land for private operation.
The controversy comes at a time when the government is under pressure to reduce cooking gas prices for consumers. Notably, in 2023, another petrochemical company, Eleven Energy, had sought environmental approvals for a similar facility in Mombasa, raising further questions about consistency and fairness in project approvals.
