Kenya’s Autogas market is targeting a doubling of converted vehicles to 40,000 as energy firms and banks move to make it easier for motorists and fleet operators to finance the shift from conventional fuels.

About 20,000 vehicles had been converted to Autogas in Kenya by the end of 2024, according to Proto Energy, which is now seeking to accelerate adoption through a new financing partnership with Equity Bank.

The partnership has introduced an Autogas Conversion Loan targeting motorists, taxi and ride-hailing operators, public service vehicles, small and medium-sized enterprises and corporate fleets seeking to convert eligible vehicles to dual-fuel systems.

Under the arrangement, Equity Bank will provide financing while Proto Energy, through its OTOGAS business, will provide technical expertise and conversion services.

Proto Energy managing director Joel Kamau said the company wants to double the number of vehicles running on Autogas, with financing expected to help address the upfront cost of conversion.

“Our ambition is clear: to double the number of Autogas-converted vehicles to 40,000,” Kamau said.

The financing arrangement comes as vehicle owners face pressure to manage fuel and operating costs, with the cost of converting a vehicle to a dual-fuel system potentially presenting a barrier to wider adoption.

The new loan is intended to spread the cost of conversion, allowing eligible vehicle owners to access credit rather than meeting the full cost of the equipment and installation upfront.

Equity Bank managing director Moses Nyabanda said financing could help customers overcome the initial investment required to adopt LPG-based solutions.

“Financing can play an important role in helping customers overcome the upfront costs associated with adopting LPG,” Nyabanda said.

The partnership also extends beyond transport, with Equity Bank and Proto Energy introducing a separate Institutional LPG Conversion Loan targeting schools, colleges, universities and other eligible institutions.

The institutional financing will cover LPG infrastructure, equipment, installation and related solutions, allowing institutions to spread the cost of switching to or expanding their use of LPG.

For Proto Energy, the financing model combines credit with the infrastructure and technical support needed to convert vehicles and institutions to LPG.

The company said the two partners will also explore additional financing and LPG solutions as they seek to expand the market.

The push comes as LPG adoption expands beyond household cooking into transport and institutional use, creating a potential new market for banks seeking to finance energy-related investments.