Safaricom PLC has announced a fresh capital injection of KSh 2.4 billion into Circle Gas Ltd, the UK-based parent company of Kenya’s pay-as-you-go (PAYG) cooking gas provider, M-Gas.
The move signals Safaricom’s continued confidence in the venture’s long-term strategic value, despite its current loss-making status.
The telco giant is betting big on technology-driven access to clean energy for underserved communities, positioning Circle Gas as a key component in its broader shift from a pure telecommunications provider to a digital services ecosystem player.
Safaricom first invested in Circle Gas in late 2019, acquiring an 18.96% stake for approximately KSh 384.6 million. The partnership granted Safaricom a non-executive board seat and opened the door for technological integration through Safaricom’s NB-IoT network and M-PESA mobile payment platform.
Since launching in 2020, M-Gas has connected over 360,000 households in Kenya to affordable, clean cooking gas. The smart meter–enabled model allows customers to purchase LPG in small increments, starting from as little as KSh 1, making it accessible to low-income urban and peri-urban populations.
Despite Circle Gas not yet turning a profit, Safaricom views the venture as a long-term infrastructure and impact play. The KSh 2.4 billion boost is expected to support regional expansion, deepen last-mile delivery, and improve smart meter and platform innovation. Reports indicate that the funds could also back cross-border expansion into other East African markets, including Uganda.
How the M-Gas Model Works
The service utilizes a proprietary smart meter fitted to an LPG cylinder, which dispenses gas based on payments made via M-PESA. This allows real-time monitoring of consumption, leak detection, and usage analytics for both the customer and M-Gas.
This flexible, pay-as-you-go approach has addressed one of the biggest barriers to LPG adoption such as high upfront refill costs and offers an alternative to harmful biomass fuels still widely used in many Kenyan households.
Aligning with Safaricom’s ESG and Tech4Good Strategy
M-Gas contributes to several of Safaricom’s environmental, social, and governance (ESG) priorities. Kenya’s reliance on charcoal and firewood for cooking contributes to widespread deforestation and poor air quality. The company sees its investment in clean cooking solutions as part of its mandate to drive sustainable development.
According to Safaricom’s 2023 Sustainability Report, the Circle Gas partnership aligns with multiple UN Sustainable Development Goals (SDGs), including:
SDG 3: Good Health and Well-being
SDG 7: Affordable and Clean Energy
SDG 13: Climate Action
The integration of M-PESA within the M-Gas payment system is not only a tool for financial inclusion,it also expands transaction volumes and customer engagement within the Safaricom ecosystem.
Industry analysts say the model could be replicated across other essential services, including water metering, electricity supply, and even healthcare financing.
“Safaricom is increasingly evolving into a digital utilities enabler,” said Dr. Joshua Kimani, a Nairobi-based technology economist. “The infrastructure powering M-Gas could easily support other sectors where affordability and micro-payments are key.”
Although profitability is still a distant goal, the venture mirrors the long-term investment trajectory of M-PESA, which took years to become profitable. Today, M-PESA accounts for nearly half of Safaricom’s total service revenue.
If Circle Gas can follow a similar path, the company could transform not only Kenya’s energy landscape but also Safaricom’s growth story.
By doubling down on a loss-making yet high-potential clean energy venture, Safaricom is sending a clear message: its future is as much about enabling digital services that improve lives as it is about growing shareholder value.
