The planned 1,200MW Dongo Kundu LNG power plant in Mombasa is making headway as it readies for the viability testing phase. The scope of implementation entails the plans to launch the first 300MW phase before 2027. Moreover, further phases will follow with an aim of addressing the rising electricity demands. However, the project will start with an initial 600 megawatts by 2028 to stabilize the national grid.

The National Treasury’ Private Public Partnership (PPP) unit is currently conducting critical viability tests. The tests include a feasibility study to evaluate the project’s technical, economic and environmental sustainability. Once complete, the results will shape the commercialization of the planned project.

The government is also taking measures to advance the plant to reduce reliance on expensive diesel-powered plants. The facility will run on imported LNG as the nation currently does not have domestic gas reserves for large scale generation.

Outlook on the Dongo Kundu LNG Power Plant in Mombasa

State-owned KenGen is expected to play a crucial rule in the Dongo Kundu LNG power plant alongside private investors. The project’s initiative includes a 600km pipeline from Tanzania, a nearby 30,000 metric-ton LPG facility and a goal to lower power costs by 2030. By using LNG, the government hopes to phase out emergency thermal power plants (IPP-owned diesel generators) which are susceptible to high “take-or-pay” costs.

Moreover, situated at the Dongo Kundu Special Economic Zone will facilitate LNG imports as the nation lacks a commercial gas reserve. Other than the current plant, projects such as the Taifa gas LPG plant are also taking shape. Once complete, the facility will benefit from the Dongo Kundu LNG plant. These combined efforts aim to lower the cost of living by providing a cheaper source of energy.

It also enhances regional integration as Kenya will greatly rely on Tanzania to operate the plant. While initial plans rely on shipped LNG, the long-term plant to build the pipeline will shift the fuel source from global markets to regional, strengthening energy and economic ties.

Project Factsheet

Project Name: Dongo Kundu LNG Power Plant
Location: Dongo Kundu Special Economic Zone, Mombasa, Kenya
Estimated Investment Value: $2 Billion+
Project Type: LNG-fired power plant / Energy infrastructure

Timeline
2026: Viability testing and feasibility studies underway
Before 2027: Planned launch of first 300MW phase
2028: Initial 600MW targeted for grid stabilization
Future Phases: Full 1,200MW planned capacity

Site & Scale
Total Planned Capacity: 1,200MW
Initial Capacity: 600MW
First Phase: 300MW
Strategic Location: Near Mombasa Port and Dongo Kundu SEZ
Fuel Source: Imported liquefied natural gas (LNG)

Key Contractors/Developers
Lead Government Agency: National Treasury PPP Unit
Expected State Developer: Kenya Electricity Generating Company (KenGen)
Potential Partners: Private sector investors

Infrastructure Scope
LNG-fired power generation plant
Associated LNG import handling facilities
Planned 600km gas pipeline link from Tanzania
Nearby 30,000-metric-ton LPG storage facility
Grid connection and transmission systems

Strategic Objectives
Increase Kenya’s electricity generation capacity
Reduce dependence on costly diesel-powered plants
Lower long-term electricity costs
Support industrial growth in Mombasa and SEZ zones
Strengthen Kenya-Tanzania regional energy ties
Improve national grid reliability

Challenges
Heavy capital investment requirements
Also reliance on imported LNG in early stages
Need for successful PPP structuring and financing
Environmental and also technical approvals pending
Pipeline development required for long-term fuel security

Current Status
Government conducting technical, economic, and environmental viability tests
Commercial structure under review through PPP model
Positioned as one of Kenya’s key future power developments