Developing and Testing Innovative User-friendly LPG financing models to accelerate uptake among rural poor through mobile pay

Project Aim

To increase access and use of LPG as a cooking fuel among internally displaced low income rural households in Mbaruk and Mogotio areas of Nakuru County.

Project Objectives

  1. To conduct a baseline market survey to assess the consumers’ awareness, perceptions, knowledge of LPG as a cooking fuel, as well as costs of different fuels, to design the best financial and delivery model for target communities.
  2. To develop and test suitable LPG consumer financing models for LPG start-up equipment and refills, through mobile payments and a mobile Phone App for rural households
  3. To evaluate the effectiveness/suitability of the developed financing model to be replicated in other communities and across the national territories over time.  

Project Background

This study builds on a concept espoused by the Kenya Government which has over the last 5 years been concerned with the negative impacts arising from heavy dependence on traditional biomass energy resources especially at the household level. The government’s concept dubbed the ‘Mwananchi Gas Project’ was rolled out in 2018 and aimed at increasing LPG penetration through provision of one-off subsidised LPG cooking kits.

In addition to this, the project has developed a financing and distribution model that makes LPG kits and refills affordable and available within reach of clusters of low income rural households. The design and integration of an easy to use mobile application platform has significantly contributed to the ease of ordering, payment and delivery of the LPG kits and refills.

Interim results from this project show wide acceptance and use of LPG among the target communities and significant reduction in cost of energy for cooking as well as reduction in reliance upon traditional biomass fuels.

The project was implemented by Scode with funding from MECS project run by Loughborough University. Project findings are as detailed in the link below;

https://documentcloud.adobe.com/link/track?uri=urn%3Aaaid%3Ascds%3AUS%3A3e6fbff4-6b70-4638-b9e0-aa63b84d35ce