Using technology to cut fuel costs for company fleet

Mobility is a critical part of the success of any business. However, most businesses that require mobility daily face an imminent high cost of fuel, too often, swallowing up to 60 per cent of the fleet's budget.

Today, many hotels, restaurants, clubs and other eateries have incorporated delivery packages in their business models, driving up the demand for fleet for their operations. The rise of e-commerce also plays a crucial part in increasing the demand for delivery services via vehicles or motorcycles, all of which take up fuel, costing the entities.

While the fluctuating global oil prices contribute largely to the spiralling fuel expenses for businesses, many companies are losing millions for a different reason: Waste, fraud and old-fashioned paperwork.

Due to a reliance on manual systems that are easy to manipulate and inefficient, many companies are losing money and time that could be spent on growth, through fuel theft and on data entry instead.

"The result is losses that quietly drain profits and fleet managers who spend more of their time chasing receipts than running operations," says Agosta Liko, Founder of Pesapal.

While it can be difficult to manage fuel expenses efficiently through manual systems, Agosta observes that technology is changing the game for business owners ‒ giving them real-time control over fleet activities.

Through digital fleet management tools, businesses are now able to optimise routes, track drivers, and identify potential issues in real-time, thus reducing losses occasioned by fuel pilferage by up to 24 per cent.

“Imagine setting custom rules for every vehicle, such as how much fuel it can get, at what time of the day and at which stations,” says Liko.

“When a driver pulls up to the pump, the system automatically verifies the vehicle, checks the rules and processes the payment. No more phone approvals. No more lost receipts. No more surprise bills at the end of the month,” he adds.

Connected directly to payment systems at fuel stations, digital tools such as Drive, developed by Pesapal, are enabling businesses to track every fueling transaction, set vehicle limits and monitor fuel usage in real time.

Businesses register their vehicles and drivers, then set custom fueling rules such as limits by vehicle, daily caps and approval requirements.

When a driver pulls up to any partner fuel station, the system instantly verifies the vehicle, checks the limits, processes the transaction and logs everything automatically. This reduces the need for phone approvals, lost receipts or surprise fuel bills at month-end.

All transactions are documented for audit and compliance purposes. Fleet managers get a live dashboard showing every fueling event, whereas finance teams get automated invoices and account statements.

“Over time, businesses have had to choose between blindly trusting or micromanaging manually. Drive removes that trade-off. As a business owner, you can now see exactly where your fuel money goes and stop losses before they happen,” said Liko.

According to Liko, as fuel costs continue to spiral, forcing companies to either absorb costs and squeeze profits, or pass them onto customers and hurt competitiveness, the only option remaining for businesses looking to save on fuel is to switch from manual to digital tools.

Integrating modern technology, however, introduces several obstacles that organisations must address to achieve successful implementation.

“New solutions bring the potential for increased efficiency, lower costs, and stronger market positioning, but without proper preparation, companies can face delays, inefficiencies, and unexpected complications,” says Liko.

Recognising these challenges early and taking proactive steps to resolve them could strengthen the adoption process and prevent disruptions to operations.

For instance, focusing on communication, resource allocation, and security planning strengthens implementation efforts, helping businesses maximise the benefits of technological advancements.

Continuous digital upskilling programmes can also help to equip organisations with the knowledge and skills required to effectively integrate tech into their operations.

Creating a culture that sees change as an opportunity, rather than a threat, could also enhance the adoption of emerging technologies.

This can be achieved by proactively sharing the reasons for the change and the benefits it will bring to organisations, such as increased productivity and reduced manual work.

From a policy perspective, incentives for organisations which adopt digital solutions could encourage more businesses to integrate technology into their operations.

New technology introduces potential risks like data breaches. For this reason, stakeholders such as the Office of the Data Protection Commissioner should conduct thorough data privacy sensitisation programs to promote a culture of responsible data stewardship.

While there has been some effort towards that, many businesses still lack clarity on compliance. Conducting thorough sensitisation on the importance of proper data management can enhance compliance.

In the recent past, bus companies, taxi drivers and even personal companies have been moving towards green mobility, as a way to cut fuel costs as well as contribute to cleaner energy for a better and sustainable environment.

Recent data shows that there were nearly 9,047 registered Electric Vehicles as of May 2025, marking a significant increase compared to the previous year. 

The National Transport and Safety Authority (NTSA) registered over 4,000 electric vehicles in 2023, and the government aims for EVs to constitute five per cent of all new vehicle registrations by 2025.

The EV market in Kenya is dominated by electric motorcycles, which make up about 90 per cent of registrations, but there is a growing number of electric cars.

Despite the growth, financing barriers have kept underserved communities and entrepreneurs locked out of the green transition.

Data by Kenya Power shows electricity use under the e-mobility tariff jumped from 1.26 GWh to over 5 GWh, marking a 300 per cent rise. Two- and three-wheelers dominate, accounting for nearly 90 per cent of all EVs, with around 300 charging points now available countrywide.