Stabex International, one of largest oil marketers in Uganda and a fast growing petroleum company in Kenya is rolling out its Liquefied Petroleum Gas (LPG) brand in the two markets, leveraging a distribution network of more than 70 retail petrol stations.
Stabex LPG will be available in major townships across the two countries with the company deploying additional investment in a network of distribution centres to enhance supply efficiency.
Stabex International now joins other major players in the petroleum industry that are positioning their LPG brands targeting the widely untapped regional market. The United Nations Sustainable Development Goals identified the adoption of LPG as important to mitigating adverse effects on climate change and to raising quality of life. Majority of households in both Kenya and Uganda presently depend on unclean energy such as firewood, charcoal and paraffin that are also linked to respiratory health problems.
“LPG usage has an untapped market size of about 83% and 89% in Kenya and Uganda respectively. At Stabex, we see this as a huge opportunity 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” said Head of Supply and Business Development, Mr. Benson Mwangi.
LPG for cooking purposes remains unaffordable to the masses due to the initial high cost of acquisition. The company is innovating affordability solutions to increase accessibility of Stabex Gas cylinders and accessories that are alleviating the consumer start-off burden. “Our strategic sales teams will focus on opening up new markets for LPG in rural areas through these affordability programs. A set of other strategies will help us compete with other gas brands for market share in existing urban markets,” Mr. Mwangi added.
The company projects that coordinated marketing efforts by Stabex will grow LPG usage by more than 10,000 metric tonnes in three years, resulting to a market expansion of 6%. According to Kenya National Bureau of Statistics Kenya has up to 300,000 metric tonnes of unrealized LPG demand, against annual supply of 170,000 metric tonnes.