We are witnessing the dawn of a new era in the industry globally defined by a more conscious consumer. In Kenya and the larger East Africa’s fueling supply chain—liquefied petroleum gas, compressed natural gas, biofuels and electricity— are increasingly taking their share of the mobility space.
The traditional petroleum sector, which has grown impressively since the mid-20th century, now finds itself at a pivotal juncture.
The change is driven by a new type of customer. One who is more conscious of existential issues like climate change and the impact of our collective actions and behaviours to the environment.
Sustainability has also moved to the heart of every conversation with every well-meaning person concerned with how they use resources and whether they shall leave a better world for the next generation or one depleted and uninhabitable.
The traditional fuelling industry has for all intents and purposes served reliably.
For instance, since the first fuel station after Kenya’s independence opened in 1966, the sector has grown to a documented 4,800 plus stations in 59 years. During this time, the supporting infrastructure has been built and improved to meet new demand of a growing economy.
Growth that once used to be powered by only multinationals has morphed to include more indigenous firms. Kenya now has a healthy mix of multinational, regional, and national brands serving across the region.
However, winds of change have been blowing on all sectors of the economy driven by environmental, social, geopolitical and technological factors and the fueling sector has not been spared. For example, during COP 21 in 2015, Kenya committed to cut 32 percent of greenhouse emissions by 2030.
This was followed by a raft of policy changes and plans like the National Adaptation Plan 2015 and Energy Transition & Investment Plan 2023. The plans look at how to substitute fossil fuels with alternatives that are sustainable and preserve our environment.
This has opened a door for e-mobility and the possibility of LPG as a transport fuel. These alternatives have been tested here in Kenya and neighbouring East Africa countries.
All these changes demand that new technologies are adopted by the fueling supply chain. From new equipment, to new thinking in engineering, design and construction. We will see the rise of hybrid stations, which sell molecules on one side and electrons on the other.
In addition, the health, safety, environment and quality standards (HSEQ) will need to become more prominent and inform on the innovations required to driving the fuelling sector forward.
For example, the public transport services piloted the use of EV buses in commuter routes and it has been a resounding success. The Matatu Owners Association (MOA) who are partners at the Afrifueling Expo 2025 are driving this adoption with a further demand of electrifying 5 percent their fleet which translates to a total of 10,000 units in 5 - 7 years.
The 2 wheeler and 3 wheeler segment is also one that is undergoing a rapid transformation. With breakthroughs in battery swapping technologies, we have seen a surge in adoption and one can see swapping stations units in different service stations. The Tuk Tuk Network Association are also partners at the expo and are supporting their members to acquire EV bikes and rickshaws.
Kenya adopted Liquid Petroleum Gas (LPG) as a transition fuel primarily for clean cooking but it soon found a solid user base in the transport sector. Due to its pocket friendly prices, fleet users such as taxi services quickly adopted it.
With over 20 Autogas stations in Nairobi alone, the demand for it is growing and new technologies are supporting 3 wheelers (Tuk Tuks) to upgrade their engines to use LPG as well. This is also the case in Tanzania, where the country has abundant Compressed Natural Gas (CNG) and now has put policies in place to create a transport ecosystem that is powered by the gas.
This is the whole essence of the AfriFueling Expo - to create a platform where the industry can launch the next phase of fueling in Africa.
It is more than an event, but a convergence of supply and demand ,and the technologies that power it. On May 6 – 8 at Sarit Center Nairobi, we shall connect, engage and discover so that we can face the future more boldly as an industry.
The writer is the CEO, Petroleum Outlets Association of Kenya & also the Convener, AfriFueling Expo 2025. Email; [email protected]
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