Tanzanian tycoon Ally Edha Awadh hit by regulatory hurdle in Kilifi LPG project

Key Points

• Tanzania’s Ally Edha Awadh faces a setback as Kenya’s tribunal revokes an environmental permit for his firm’s Kilifi import terminal project.
• Kenya’s 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 Oil’s push into Kenya’s LPG market now faces uncertainty amid tightening regulatory scrutiny.

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

Regulatory setback delays Lake Oil’s expansion

Lake Oil, a subsidiary of the Lake Group—one of East and Central Africa’s leading trading and transportation conglomerates—had positioned itself to challenge Kenya’s dominant LPG players with a 22,000-tonne import terminal, which would have been the country’s third-largest. The project, however, now faces regulatory uncertainty following the tribunal’s decision.

Citing procedural failures, the tribunal ruled that the National Environment Management Authority (NEMA) had not conducted adequate public consultations or subjected the project’s 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.

Lake Group’s regional influence and expansion strategy

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 Africa’s energy sector.

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

While the Kilifi project faces regulatory headwinds, Awadh remains focused on expanding his LPG footprint in East Africa. The ruling underscores the challenges foreign investors encounter in navigating Kenya’s complex regulatory environment, particularly in high-risk sectors like energy. However, with an established regional presence and ambitious growth plans, Lake Oil is likely to pursue alternative avenues to strengthen its foothold in the market.