M-Gas

What M-Gas does

M-Gas Limited is a Kenyan last-mile provider of clean cooking LPG fuel, operating as a wholly-owned subsidiary of UK-incorporated Circle Gas. Founded in 2018 with consumer operations launched in 2020 from Mukuru Kwa Njenga, Nairobi, the company serves over 350,000 low-income urban and peri-urban households across nine Kenyan counties, including Mombasa, Kisumu, Nakuru, Eldoret, Kakamega, Kisii, Bungoma, Meru and Migori. The company's core offering is a Pay-As-You-Cook service that combines proprietary IoT smart meters installed on 13KG LPG cylinders, enabling customers to purchase gas in increments as small as KSh 10 via Safaricom's M-PESA mobile money platform (USSD *479#, PayBill 804040). NB-IoT connectivity from Safaricom powers real-time gas-level monitoring and triggers proactive doorstep cylinder replacement before depletion.

M-Gas monetises through three primary streams: (i) recurring usage-based LPG gas sales priced at KSh 102 per 300 grams (0% VAT), (ii) hardware revenue from 2-burner stoves sold or rented via weekly instalments (KSh 25-42 per week depending on customer category), and (iii) carbon credit sales generated by displacing biomass fuels, which contributed $15.6 million in presales in 2024 and underpinned the company's first positive operating cash flow of $1.7 million. The company holds a Kenyan government Letter of Approval for its clean cooking carbon project, with a pending Paris Agreement Letter of Authorisation projected to add approximately $9 million in incremental value. Strategic distribution is anchored by partnerships with TotalEnergies Marketing Kenya (cylinder supply, targeting over 1 million households annually) and Safaricom (NB-IoT, M-PESA), complemented by ecosystem support from the Clean Cooking Alliance, Climate Impact Partners, AECF, and the Middle East Green Initiative.

The business is funded through a combination of bank debt (I&M Bank, with facilities of $5.99 million in February 2023 and $30 million in July 2023, priced above 20 percent) and carbon credit presales, with directors projecting an additional $20 million in third-party funding needs. M-Gas employs over 2,000 people across 13+ departments, holds GDPR-equivalent data protection compliance under Kenya's Data Protection Act 2019, and was awarded the Clean Cooking Award in August 2025. The company operates in a large addressable market — approximately 94% of Kenyan households still rely on traditional biomass fuels, contributing to an estimated 19.6 million annual respiratory illness cases nationally.

Name

M-Gas

Legal name

M-Gas Limited

Website

https://mgas.ke

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

M-Gas is a Kenyan last-mile LPG cooking fuel provider that uses IoT smart meters and M-PESA micropayments to deliver pay-as-you-cook service to over 350,000 low-income households across nine counties, monetising through gas sales, hardware, and carbon credits.

Ownership category

akta.pro rank

Product category

Clean Cooking Solutions

NAICS

Natural Gas Distribution (22121), Natural Gas Distribution (2212), Natural Gas Distribution (221210)

SIC

Natural Gas Distribution (4924), Oil & Gas Field Machinery & Equipment (3533)

akta.pro primary industry

NGL/LPG Distribution / Local Delivery Pipelines (Terminal-to-Market) (TLAGAEAJ)

akta.pro secondary industry

Industrial CNG/LNG Supply & Distribution (Virtual Pipelines, Trucking, Satellite Storage) (EUALALAA)

Keywords

• Clean cooking solutions
• LPG distribution
• Pay-as-you-go gas
• Smart meter technology
• Carbon credit sales

Headquarters

HQ city

Nairobi

HQ country

Kenya

HQ region

Africa

Offices10 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Supply Chain, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. LPG Gas Sales (Pay-As-You-Cook): Core recurring revenue from selling LPG gas to customers through a consumption-based model. Customers pay per 300 grams of LPG at KSh 102. Revenue is earned as customers top up via M-PESA and consume gas. The company retains ownership of the cylinder and monitors consumption remotely.
2. Smart Meter and Stove Hardware: Revenue from sale of 2-burner stoves with various payment options including outright purchase (KSh 1,975-KSh 3,950 depending on customer category) or weekly instalments. Smart meter is provided as part of the service but stove ownership transfers upon full payment.
3. Carbon Credit Sales: Revenue from sale of carbon credits generated by displacing biomass fuels with clean LPG cooking. In 2024, $15.6 million in carbon credit presales supported operations. The company secured Letter of Approval from Kenyan government and projects $9 million in additional value from Paris Agreement Letter of Authorisation.
4. Transaction Processing: Minor transaction fee revenue from M-PESA payment processing where customers pay for gas through mobile money.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels7 records

Core offering

M-Gas is a last-mile clean cooking fuel provider in Kenya that delivers LPG cooking gas through a Pay-As-You-Cook model powered by proprietary IoT smart meters installed on 13KG cylinders. Customers pay for gas in small daily amounts (as little as KSh 10) via M-PESA mobile money, receive free doorstep delivery and proactive cylinder replacement, and can optionally purchase 2-burner stoves through outright or installment plans. The offering eliminates the prohibitive upfront cost of LPG cylinders and replaces harmful biomass fuels for low-income households.

Product overview

M-Gas operates as a last-mile clean cooking fuel provider in Kenya, powered by a modern scalable IoT (Internet of Things) platform. The core offering is the Pay-As-You-Cook Solution, which combines proprietary LPG smart meters installed on 13KG cylinders, enabling customers to pay for gas in small daily amounts via M-PESA mobile payments. The ecosystem includes optional 2-burner stoves available through purchase plans, time-based Cooking Minutes tariffs, and a mobile app. The company serves over 350,000 households across Kenya, leveraging NB-IoT connectivity from Safaricom for smart meter functionality.

Differentiator

Problem solved

Functional benefit

Products and services

• Pay-As-You-Cook LPG Service A pay-as-you-go LPG cooking service for Kenyan households that eliminates the upfront cost of cylinders. Customers receive a 13KG LPG cylinder equipped with an IoT smart meter free of charge and pay for gas consumption in small daily amounts (as little as KSh 10) via M-PESA mobile money at KSh 102 per 300 grams. The company retains ownership of the cylinder and meter, monitors consumption remotely, and proactively delivers replacements before depletion.
• 2-Burner Stove An optional two-burner cooking stove sold to M-Gas customers alongside the LPG service. Available through outright purchase (KSh 1,975 to KSh 3,950 depending on customer category) or weekly installment payments (KSh 25 to KSh 42 per week). Stove ownership transfers to the customer upon full payment.
• M-Gas Mobile App A mobile application available on the Google Play Store enabling M-Gas customers to manage their LPG account, view gas usage, receive notifications, and access customer services.

Quantifiable outcome

• 70% of customers appreciate ability to pay as they cook
• +3 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature4 records

Partnerships

Six partnerships are on record, tiered core, flagship and supporting.

• SafaricomcoreTechnology or IntegrationStrategic collaboration for NB-IoT technology powering smart meter connectivity and M-PESA platform facilitating mobile money payments for pay-as-you-cook gas purchases. Extended in 2020 to include technology and infrastructure.
• TotalEnergies Marketing KenyaflagshipOEM/ Whitelabel/ Licensing PartnerPartnership to scale M-Gas affordable pay-as-you-cook technology installed on TotalEnergies LPG cylinders, targeting over one million households annually in Kenya.
• Clean Cooking AlliancecoreStrategic or Co-development PartnerStrategic partner providing support, resources, and credibility for clean cooking initiatives and market development.
• Climate Impact PartnerscoreStrategic or Co-development PartnerPartner for carbon credit development and sales, supporting the company's carbon credit revenue stream and climate impact measurement.
• African Management InstitutesupportingStrategic or Co-development PartnerPartner for organizational capacity building, management training, and operational excellence programs.
• University of LiverpoolsupportingStrategic or Co-development PartnerAcademic partnership for research, innovation, and knowledge development in clean cooking technology.

Scale indicators10 records

Recent moves1 record

Expansion highlights7 records

Others

• Safaricom: Kenya's leading mobile network operator providing M-PESA mobile money and NB-IoT connectivity to M-Gas. Technology/infrastructure enabler rather than competitor, but M-PESA is mission-critical to M-Gas's PAYG business model.
• Circle Gas: UK-incorporated parent company of M-Gas, formed in 2018 by investors to scale PAYG LPG clean cooking across Africa. Operates as strategic holding company for the M-Gas subsidiary.

Emerging players

• d.light: PAYG solar energy provider serving off-grid households across Africa and Asia. Comparable last-mile PAYG distribution model and low-income customer segment, though focused on solar lighting/energy rather than clean cooking.
• Ecozen Solutions: India-based IoT platform company serving clean energy and agricultural cold chain with smart metering and PAYG controls. Comparable IoT/PAYG tech stack and last-mile energy distribution play, though in different end markets.

Direct peers

• ATEC*: Cambodia-based PAYG clean cooking company producing IoT-enabled biomass and biogas cookstoves. Comparable IoT-enabled PAYG clean cooking model with similar mission-driven, carbon-credit-supported economics.
• BURN Manufacturing: Kenya-based manufacturer and distributor of clean cookstoves targeting low-income households. Closely comparable customer base and clean cooking mission, although BURN focuses on biomass/ethanol stoves rather than LPG.
• PayGo Energy: PAY-as-you-go LPG provider in East Africa offering smart-metered cooking gas to off-grid households. Highly comparable business model and customer segment to M-Gas's PAYG LPG cylinder offering.
• Sistema.bio: Mexico-headquartered clean cooking biogas company with IoT-enabled biodigesters serving smallholder farmers across Latin America, Africa and Asia. Comparable PAYG/IoT clean cooking model with carbon credit revenue stream.
• Koko Networks: Kenya-based PAYG clean cooking network that deployed smart-metered fuel dispensers in retail kiosks. Direct competitor to M-Gas in the Kenyan PAYG clean cooking space; notably shut down after failing to secure a carbon credit Letter of Approval, validating M-Gas's regulatory positioning.

Broad incumbents

• TotalEnergies Marketing Kenya: Major global oil major and incumbent LPG distributor in Kenya. Direct LPG distribution competitor and flagship partnership counterparty for M-Gas's smart meter deployment on TotalEnergies cylinders.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/mgaskenya
• Facebookfacebook.com/MGasKenya
• LinkedInlinkedin.com/company/m-gas

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about M-Gas