News

K-Gas wallet takes clean fuel to rural homes

keno

KenolKobil managing director David Ohana (left) shakes hands with Nation Media Group acting CEO Stephen Gitagama during the signing ceremony for a newspapers and K-Gas cylinders distribution deal on May 22, 2018. Looking on are KenolKobil general manager (Kenya) Martin Kimani (second left), Nation Newspaper Division MD Francis Munywoki and Nation MD broadcast division Alex Kobia. PHOTO | DIANA NGILA | NMG

There is need to widen the existing market share of liquid petroleum gas (LPG) to reach needy segments, including rural areas that still rely heavily on wood and charcoal, KenolKobil #ticker:KENO has said.

To achieve this, the firm launched the K-Card mobile wallet application early this year.

It allows seamless online transactions for rural populations, especially with poor road network, to buy K-Gas from authorised dealers — using their mobile phones — to be delivered at their doorsteps.

Initially launched to serve motorists, the K-Card can also be used to buy other non-fuel products including lubricants, airtime, drinking water and car-wash services and will now help devolve K-Gas’ clean and safe fuel to rural areas. 

“Given that rural areas have remained unexploited and cooking methods still pose huge challenges, we want to make sure that we get the bulk of the population on board to benefit from cleaner fuel that’s environmentally sustainable,” KenolKobil general manager Martin Kimani said.  

Up to 81 per cent of Kenyan households still use primitive fuels mostly firewood (64 per cent) as the main source of cooking fuel, followed by charcoal (17 per cent). Only six per cent of households use LPG, according to the latest report by the Kenya National Bureau of Statistics (KNBS), which Mr Kimani said poses a huge potential for growth.

He emphasised the need to use the K-Card application to raise awareness on benefits of using cooking gas.

“The market also needs initiatives for campaign awareness to educate the masses on dangers of using charcoal and wood fuels which pose risks to health and are also hazardous to the environment,” he said.

Mr Kimani said that storage facilities are necessary to take K-Gas closer to the people.

“Apart from Nairobi warehousing facilities, we are building more storage facilities across the country to make distribution easy,” he said.

ALSO READ: Kobil sets record with Sh707m CEO exit pay