Energy | Kenya | Pilot
The development problem: Kerosene and charcoal use has long been associated with adverse health and environmental risks including burns, poisoning, respiratory diseases and cataracts, and yet while liquefied petroleum gas (LPG) has been proven to be a cleaner alternative, low-income urban consumers are priced out of making this switch due to the upfront and recurring costs.
The innovation: PayGo Energy is a distribution service that harnesses the power of pay-as-you-go-technology to unlock clean energy for the next billion. PayGo is developing smart metering systems that enable customers to pre-pay for clean cooking gas. These smart meters monitor credit and gas consumption, to help predict usage and provide portions of gas. This allows PayGo to provide an uninterrupted supply of affordable gas to their customers.
GIF’s investment: A debt investment of $230,000 will help PayGo to finalise a field-ready product and test its product and service with 100 household customers.
Why we invested:
- Important health problem that disproportionally impacts low-income consumers who cannot afford clean cooking fuels
- Potentially cost-effective intervention in a sector with limited business model innovations
- Strong management team with experience running pilots