Stabex says it will focus on opening up new markets for LPG in rural areas through affordability programmes.
Oil and gas marketing company Stabex International Limited is tapping into the liquefied petroleum gas (LPG) business in East Africa as demand for clean sources of cooking fuels sours.
The company’s Head of Supply and Business Development Benson Mwangi said Kenya and Uganda have an untapped LPG usage market share of about 83 per cent and 89 per cent in respectively.
“We see this as a huge opportunity in both countries and are aligning our penetration strategy with the ‘UN Sustainable Energy for All Initiative’ whose goal is to have one billion more people cooking cleanly with LPG energy by 2030,” Mr Mwangi said.
“Our strategic sales teams will now focus on opening up new markets for LPG in rural areas through affordability programmes. A set of other strategies will help us compete for footfall in urban markets with other gas brands to grow market share.”
The company enters a market that is dominated by big brands such as K-Gas, Total, Pro Gas, among others.
The investment follows growing demand for LPG in the past five years with a 40.4 per cent increase recorded last year at 312,100 tonnes compared to 222,300 tonnes used in 2018.
The rise follows the subsistence of a logging moratorium now in its third year that outlawed logging and charcoal burning in public forests thereby creating demand for alternative fuel energy sources, especially for urban dwellers.
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