Nigerian energy tycoon Tope Shonubi’s firm wins Kenya’s LPG deal

Key Points

• Asharami Synergy secures a 31-year lease to build and operate a 30,000-tonne LPG facility in Mombasa, marking a strategic win in Kenya’s shifting energy landscape.
• KPC loses the project after investing $1.5 million, following government directives to prioritize private investment in energy logistics and infrastructure development.
• Shonubi’s entry disrupts regional competition, challenging Tanzanian and Kenyan players while extending Sahara Group’s reach across East Africa.

Asharami Synergy, the Nigerian downstream energy company under Sahara Group led by Tope Shonubi, has secured a major contract to build a liquefied petroleum gas (LPG) terminal in Mombasa, Kenya. This win pushes aside the state-owned Kenya Pipeline Company (KPC) and challenges the expansion plans of Tanzanian energy giant Lake Oil, owned by Ally Edha Awadh.

The 30,000-metric-tonne facility, set for development in Mombasa under a 31-year public-private partnership (PPP), will be constructed, operated, and maintained by Asharami Synergy on a 23.19-acre parcel leased from Kenya Petroleum Refineries Ltd (KPRL). Once operational, the terminal is expected to significantly lower LPG prices through large-scale imports and improve access to cleaner household energy.

Kenya reboots LPG strategy

The project was originally initiated by KPC as a state-driven effort to reduce dependency on wood fuel and stabilize LPG prices in the domestic market. By 2023, the company had acquired KPRL, completed feasibility studies, and finalized front-end engineering designs. However, in mid-2024, Kenya’s Ministry of Energy and the Treasury decided to pull KPC from the project, citing a policy shift towards private-sector involvement and a focus on fiscal efficiency.

This decision has left KPC with a $1.5 million loss in unrecoverable costs, as highlighted in the Auditor General’s latest financial review. The move also shifts the competitive landscape at the port of Mombasa. Tanzanian businessman Ally Edha Awadh, whose Lake Oil has long eyed Kenyan coastal infrastructure, now faces tougher entry barriers. At the same time, Mohamed Jaffer, whose Grain Bulk Handlers controls a significant portion of the LPG import market, may find the arrival of Asharami—backed by government support—a new challenge.

Beyond LPG: Shonubi’s strategic expansion

Asharami Synergy’s selection reflects Nairobi’s shift toward private-sector players with a strong track record in energy logistics. Already licensed under Kenya’s government-to-government procurement program, the company handles payments for major global suppliers like Saudi Aramco, ADNOC, and ENOC, making it a key partner in Kenya’s efforts to open up its fuel infrastructure.

Under Shonubi’s leadership, Sahara Group has expanded beyond fuel logistics into upstream oil, power generation, and commodities trading, creating a broad-based energy business. The Kenyan LPG terminal fits into the company’s strategy of investing in underused infrastructure across Africa and working with governments to scale up operations through public-private partnerships.

For Shonubi—whose Sahara Group operates in more than 40 countries—this move strengthens the company’s presence in East Africa, adding Kenya to an expanding footprint that already includes Ghana, Uganda, and Tanzania.