Cost Analysis of Distributing Liquid Oxygen to Facilities in Western Kenya Using Portable Cryogenic Tanks

Villgro Africa was engaged to conduct an analysis that would provide insights on the cost implications of piloting liquid oxygen operations in 25 facilities in Western Kenya. The client was conducting a study in two facilities to collect key market insights on the consumption of liquid oxygen and was looking to better understand the cost implications of scaling the delivery to more facilities.

To begin, we reviewed documents shared by the client and highlighted outstanding questions to explore in more depth during stakeholder consultations. We then conducted consultations with key players in the sector, across the value chain, to understand the current operational model. Based on the data collected, we performed various analyses to generate insights on the cost implications of scaling operations. We consolidated our findings into a summarised report that we presented at a workshop with the client to get buy-in on our hypothesis and recommendations.

Our work culminated in a model that provided information on the cost implications of scaling liquid oxygen delivery to more facilities, as well as a report providing insights on the costs incurred, key players, and the regulatory framework for importation and clearance of cryogenic tanks that will be used for delivery of the liquid oxygen. We presented the final report at a workshop with the client to collect feedback on the insights and opportunities identified. Based on the feedback, we created a summarised report, which the client used to gain key stakeholder buy-in for launching a 24-month pilot for the distribution of liquid oxygen.