Developing and Testing Innovative User-Friendly LPG Financing Models to Accelerate Uptake among Rural Poor through Mobile Pay

Published Date 

6 Mar 2020

References

Instructor

Name

John Maina; Patrick Wamalwa; Benjamin Kisiangani; Fredrick Okinda; Anastacia Kamau; Mercy Kamau

About the publication

The aim of the project was 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. A baseline survey was conducted in the area to bring about a more detailed understanding of the supply and demand situation of cooking fuels in the project target areas. Building on the results from the baseline survey, the project team developed and tested a suitable financing model which was expected to ease the burden of the cost of purchasing of LPG cooking kit and refills among the target households. This model was tested against the following criteria: ease of payment in small and affordable amounts, effectiveness in supply of LPG and discipline instituted among user households for payment of energy consumed.

The results from this project show that majority of target households have been able to make regular payments for their LPG refills, the payments are made promptly, the LPG supply hubs have maintained regular and adequate stocks. Thus, the initial stages in the implementation of the model indicate great potential for supporting communities in the study area to start transitioning from solid biomass fuel to LPG for cooking. In spite of the seeming transitioning, it may be too early to project what is likely to happen to traditional biomass stocks.