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Kenya Becomes First Country to Launch Pay-As-You-Go LPG Service

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This technology allows the customer to pay for gas the same way they buy electricity tokens. www.businesstoday.co.ke
This technology allows the customer to pay for gas the same way they buy electricity tokens. Photo/ Safari Supa Gas
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Local gas distributor and retailer, Safari Supa Gas, has partnered with PayGo Energy to launch Kenya’s first pay-as-you-go LPG gas. Thanks to the partnership, Kenyans do not have to worry about their gas running out ever again.

 PayGo has launched a Cylinder Smart Meter which provides real-time data on household gas consumption. Each meter has a unique ID that customers use to pay for gas through MPesa. The customer is only ever charged for the gas they use – much the same as paying for electricity tokens.

Many consider LPG to be cleaner, safer, more efficient and more environmentally friendly when compared with traditional cooking fuels. This energy type has grown popular with Kenyans living in urban and even rural areas embracing it.

The challenge, however, is that until now gas has only been available for purchase by the cylinder. Every person who uses LPG has a funny story to tell about how their gas ran out at a very unexpected time. The new smart meter works to avoid this situation.

The concept of pay-as-you-go is not new. It’s how most Kenyan households pay for their electricity. What’s new is taking that same experience, and replicating it for cooking gas.

“When the customer runs out of credit, the gas automatically shuts off. When they add additional credit, their account is instantly credited and the gas service resumes. Customers can top up as little as 1 KES at a time,” Ash Berman, Head of Corporate Development at PayGo Energy explains.

The Cylinder Smart Meter is an IoT device that attaches to the top of an LPG cylinder. To get a customer started, Safari Supa Gas delivers a full cylinder and attaches a Cylinder Smart Meter. Customers then pay in whatever amounts they feel comfortable, all through MPesa. The customer never has to worry about how much gas is in the cylinder. As long as they have credit in their account, they will always have gas available for cooking.

“Safari Supa Gas staff use the PayGo digital platform to monitor consumption in real-time. Our staff always know how much gas is left in each customer’s cylinder. When the gas is about to run out, we send an agent to the customer’s home to replace their cylinder with a full one,” noted Safari Supa Head of Business Development, Flora Njagi.

“Safari Supa Gas brings a growing distribution network and the operational expertise required to scale across Kenya. PayGo brings a commercially ready smart meter and software platform, and a focus on continuing to innovate to drive the industry forward. Together, we’re the perfect team to revolutionize the cooking experience for all Kenyans.” Njagi added

The technology has already been tested in Nairobi’s Mukuru Kwa Reuben.

We have over 400 customers using our pay-as-you-go cooking service, with around 90% customer retention. Feedback has been tremendously positive,” noted Berman.

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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