Tanzanian Tycoon Ally Edha Awadh Hit By Regulatory Hurdle In Kilifi Lpg Project

Tanzanias Ally Edha Awadh faces a setback as Kenyas tribunal revokes an environmental permit for his firms Kilifi import terminal project.

Kenyas tribunal cites procedural failures and fines Lake Oil Ksh2 million 0.155 million for defying a halt order on its LPG terminal.

Despite its billion-dollar regional dominance, Lake Oils push into Kenyas LPG market now faces uncertainty amid tightening regulatory scrutiny.

Tanzanian tycoon Ally Edha Awadhs push to enter Kenyas liquefied petroleum gas LPG market has hit a snag after the National Environment Tribunal revoked the Environmental Impact Assessment EIA permit for his firms planned import terminal in Kilifi County. The ruling is the latest in Kenyas tightening regulatory oversight on LPG projects, following past crackdowns by the Energy and Petroleum Regulatory Authority EPRA on non-compliant firms.

Lake Oil, a subsidiary of the Lake Group one of East and Central Africas leading trading and transportation conglomerateshad positioned itself to challenge Kenyas dominant LPG players with a 22,000-tonne import terminal, which would have been the countrys third-largest. The project, however, now faces regulatory uncertainty following the tribunals decision.

Citing procedural failures, the tribunal ruled that the National Environment Management Authority NEMA had not conducted adequate public consultations or subjected the projects downsized version to a fresh EIA review. Additionally, on Mar. 10, 2025, the tribunal fined Lake Oil and its partner Vipingo Development Limited Ksh2 million 0.155 million for defying an earlier construction halt order. EPRA will now decide the project's fate.

Since founding Lake Group in 2006, Awadh , the 45-year-old founder, has grown it from a Tanzanian fuel distributor into a billion-dollar energy conglomerate operating across Uganda, Zambia, the Democratic Republic of Congo DRC, Rwanda, and Burundi. With over 400 fuel tankers and strategically located storage terminals, the company is a dominant force in East and Central Africas energy sector.

Beyond fuel, Awadh has tapped into the transition toward cleaner energy with Lake Gas, now one of East Africas largest LPG suppliers, serving both urban and rural markets across Tanzania, Uganda, Zambia, DRC, and Rwanda.