‘We aim to showcase LPG’s potential in combating climate change, offering a greener future for Kenyans and the broader continent’: Amanda Donahue, CEO of Proto Energy

In the heart of Kenya’s evolving energy landscape, Proto Energy (Proto) emerges as a guiding light of innovation and progress, aiming to transform the lives of households and businesses across the country. With a keen understanding of the prevailing energy dynamics, Proto Energy, a dynamic subsidiary of the esteemed Kenya Energy Group (KEG), has taken significant strides in the last five years to revolutionize the accessibility and affordability of liquefied petroleum gas (LPG).

As Proto Energy charts the course for a downstream distribution business, their vision becomes clear – to make LPG not just a fuel source but a transformative force, easily accessible and affordable for households and businesses alike.

Amanda Donahue, CEO of Proto Energy, spoke exclusively to CIO Bulletin about how her company is raising awareness about the benefits of LPG and making the cleaner energy source an affordable reality for a broader spectrum of Kenyan citizens and beyond.

Interview Highlights

Q. What was the initial vision and inspiration behind founding Proto Energy, particularly in the context of Bulk LPG and related services?

The vision for Proto Energy was to offer a high-quality gas cylinder readily available across Kenya at an affordable price. At the time, access to cylinders was primarily targeted towards the elite through the traditional petrol station pick-up model. Thus, Proto was founded with the mission to ensure that every household across the country could access a cylinder through a vast network of independent retail shops. Initially launched under the PRO Gas brand, our vibrant pink cylinders quickly became a sought-after commodity.

In its short lifespan, PRO Gas has risen to claim the leading market position in the downstream distribution of LPG throughout Kenya by making an aspirational and much-needed product attainable. Currently, Proto Energy boasts over 1700 employees, three filling facilities, one manufacturing plant, and 53 containers to service the entire country with both PRO Gas and SEA Gas.

Q. Can you provide a detailed overview of Proto Energy’s Bulk LPG product, highlighting its quality and suitability for various industrial and commercial applications?

Proto Energy operates through three distinct commercial channels for the distribution of LPG. The first is our cylinder business, branded as PRO Gas and SEA Gas, providing over 4 million households with access to high-quality and affordable LPG cylinders. The second channel involves bulk LPG, delivered through our closed ecosystem to ensure top-notch LPG quality. This supply is tailored for use in diverse settings such as educational institutions, hospitals, hotels, manufacturers, bakeries, and large residential complexes. Under the banner of OTO Gas, Proto Energy proudly pioneered the conversion of petrol cars to operate on LPG, allowing customers to enjoy up to an 80% savings on fuel costs.

Leveraging Proto Energy’s expertise in the LPG sector, we have established a robust and reliable supply chain throughout our entire value chain. This achievement is made possible through strategic investments in infrastructure, technology, logistics, and skilled personnel.

Q. Beyond Bulk LPG supply, what other services are included in Proto Energy’s LPG Services portfolio, and how do they complement the core product?

We innovate around our proprietary software solutions to distribute and control the movement of LPG throughout the region. Proto has dedicated the last 5 years to a focus on technology, developing products and services to enhance the quality and reduce the cost of our product while providing us with the data necessary for future innovations.

Beyond bulk and cylinder sales, Proto is engaged in two major initiatives that will continue to grow in 2024. The first is a goal to transition Kenyan schools from using firewood to LPG. We have refined a conversion kit that can be custom-made in-house, tailored to fit the size of the kitchen and the number of cooking stations. School conversions are crucial to shifting Kenya away from dependence on charcoal and firewood, which significantly contributes to deforestation. In conjunction with the program, we support students in planting trees around their campus and collaborate with teachers to educate students on the negative impacts of deforestation.

Another way in which we are positively disrupting the market and contributing to curbing climate change is by converting vehicles to run on LPG. OtoGas has successfully converted thousands of cars over the past three years and continues to grow. Both of these initiatives support the Proto Energy ecosystem and provide an avenue for us to make a positive impact on the environment.

Q. In what ways does Proto Energy tailor its solutions to meet the specific needs of different clients, and can you provide examples of bespoke LPG solutions developed by the company?

We genuinely comprehend the essential elements needed to enhance LPG penetration in this market and throughout the region. With our proprietary software solutions, we can provide subscription, “priority customer,” and Fintech products that align with the purchasing behaviors of our extensive customer base. Whether it’s households or schools, our focus is steadfast on increasing LPG penetration from 14% to 58% in the next 5 years.

Q. Considering the diverse industries served by Proto Energy, what sustainability initiatives are integrated into the company’s products and services?

Sustainability, within the context of our growth trajectory, is a multi-faceted approach that involves driving an increase in LPG consumption. Simultaneously, we are committed to educating the market and the next generation on clean cooking solutions. We strongly believe in cultivating robust partnerships, not only with retailers who sell our products but also with financial institutions that can assist our customers and business owners. Additionally, forging alliances with technology development partners and schools is integral as we advance in our conversion program. Through these collaborations, we ensure sustainability, agility, and the capacity to develop and grow.

Q. How does the company stay updated with the latest technological advancements in the LPG industry, and how is this knowledge applied in providing expert solutions?

By leveraging cutting-edge technology in our processes, we streamline order fulfillment, ensuring prompt and efficient service for our clientele. Our responsive call center and online chat support swiftly direct concerns to the appropriate departments. With technological advancements in cylinder tracking and usage, we can also gain deeper insights into our clients, utilize data to enhance our offerings, and assist customers in realizing cost savings while using our gas.

Technology development stands as a key pillar for the organization and is a focal point for me. With a small, in-house team that genuinely understands the needs of the company, we have introduced three new tech solutions in the last 12 months that have significantly increased our efficiency and laid the foundation for the next year of advancements.

Q. Looking ahead, what are Proto Energy’s plans for further innovation and growth in the coming years?

Utilizing data to further provide low-cost LPG solutions to households is our main objective, ensuring the long-term sustainability of LPG use. We place a high value on data, learning directly from our customers, and focusing innovations on how to better serve them.

Q. What message would you like to convey to the readers of CIO Bulletin and your current and future clients?

Our dedication to excellence and safety forms the true foundation of the company. Proto collaborates closely with regulatory bodies, ensuring stringent safety measures for our operations and delivering cylinders that set the highest standard in the market. This proactive approach has instilled trust in LPG, positioning our product as a dependable and secure energy solution.

According to estimates from the Kenya National Bureau of Statistics, as of 2021, it was estimated that approximately 74% of households in Kenya use traditional sources of energy, such as firewood and charcoal, for cooking, while only 26% use modern energy sources such as LPG gas. Given this, it is clear that there is still significant room for growth in the LPG industry in Kenya, and many more people could benefit from switching to LPG as a cleaner and more efficient source of energy.

Our vision extends beyond mere growth; we aim to showcase LPG’s potential in combating climate change, offering a greener future for Kenyans and the broader continent.

The Stalwart Leader at the Helm of Proto Energy

Amanda Donahue is the Chief Executive Officer of Proto Energy. She is a pioneer in the industry, pushing the boundaries in tech development and leading a young company that prioritizes diversity at all levels. Her career has spanned various leadership positions, from executive at Direct TV in the U.S. to creating a maternal health program in Kenya, as well as leading business development in Fintech in Africa. She brings a unique perspective to the role of group CEO, has grown the business year over year, and continues to create innovative programs to keep the business agile. Her motto, “failure is good, it is where we learn,” has helped develop the leadership team and allowed the company to thrive.