The construction of East Africa’s first modern liquid oxygen manufacturing plant has begun at the Tatu Industrial Park in the Tatu City Special Economic Zone.
This follows the groundbreaking ceremony, which was held on Friday, graced by US Ambassador Meg Whitman and her Finland counterpart Pirkka Tapiola.
Once completed, the plant will address the rising demand for medical-grade liquid oxygen in healthcare facilities across the entire region.
The project is spearheaded by Hewatele and funded by development partners from the United States Development Finance Corporation, the government of Finland through Finnfund, Grand Challenges Canada, Soros Economic Development Fund and UBS Optimus Foundation of Switzerland with a total investment of $20 million (Sh2.5 billion).
Hewatele founder Bernard Olayo said the project will ensure high-quality oxygen is consistently accessible across different facilities in the region.
Significance of the East Africa’s Largest Oxygen Plant Project in Kenya
He said it will also contribute towards achieving universal healthcare and contributing towards the country’s economic growth.
“Access to quality emergency healthcare services is a fundamental human right that enhances quality of life, allowing citizens to focus on personal and business development.
Achieving universal healthcare requires global solidarity and resource mobilization,” Olayo said.
Ambassador Whitman mentioned that the project is a win for Kenya and the US is proud to partner with Hewatele to see the project successful.
“The United States is proud to partner with Hewatele on the opening of this important plant.
“This facility is a win-win for Kenya.
It will improve healthcare in the country and provide jobs in a growing industry,” she said.
Similar Mega Projects in Kenya
The government of Kenya has opened discussions with Sahara Group, an indigenous Nigerian energy firm, to co-build a 30,000-ton facility to handle and store liquefied petroleum gas, LPG, in that country.
According to sources familiar with the plans, the deal will see state-owned Kenya Pipeline Co. forming a joint venture with Asharami Synergy Plc, an arm of Sahara Group, to build the common user terminal set to be East Africa’s biggest LPG storage and bottling facility in the port city of Mombasa.
The facility estimated to take 24-months to build will be financed by Asharami while Kenya Pipeline Co. will provide land for the project located on the port-side.
Joe Sang, the managing director of Kenya Pipeline company told Bloomberg the process of on-boarding a private sector company for the cooking-gas facility is ongoing while a spokesperson for Lagos-based Asharami, which provides warehousing and logistics terminals in the downstream oil and gas sector across Nigeria and other regions in Africa, declined to comment.
East Africa to Achieve Clean Cooking Energy by 2030
The project is expected to help the East African nation achieve universal access to clean cooking energy by 2030.
More than 90 per cent of rural households in Kenya use biomass such as wood fuel and charcoal, according to the nation’s Energy Ministry. The fuels produce noxious gases like carbon monoxide, which are blamed for shortening the lives of more than 600,000 people annually on the continent, according to the World Bank.
The talks between Kenya and Sahara Group are still ongoing, and details regarding the project’s timeline and investment are yet to be finalised. However, this potential collaboration signifies Kenya’s commitment to improving its LPG infrastructure and promoting cleaner cooking solutions for its citizens.
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