Kenyans are set to benefit from a new initiative launched by the African Development Bank (AfDB). The Ksh1.3 billion programme aims to distribute 115,000 electric cookers to low-income households, reducing their dependence on charcoal.
The programme, known as the Burn Electric Cooking Expansion Programme (BEEP), is running in Uganda, Zambia and Kenya. It is set to transform the livelihoods of families who have electricity but still depend on charcoal, which poses a threat to the environment.
The project aims to elevate families while at the same time, protect the environment from the adverse effects of environmental deterioration brought about by cutting down trees.
The initiative is spearheaded by Burn Manufacturing, a Nairobi-based clean cookstove company operating in over 10 African countries.
Capitalised through a Special Purpose Vehicle (SPV), the project has brought about a blend of public and private investment.
It includes a Ksh650 million ($5 million) senior loan from the Spark+ Africa Fund, a Ksh520 million ($4 million) reimbursable grant from AfDB’s Sustainable Energy Fund for Africa (SEFA), and Ksh130 million ($1 million) in equity from Burn Manufacturing itself.
These households would not face affordability issues as the programme uses the pay-as-you-cook model. Households will pay small amounts via mobile money until they own the appliance outright.
“This milestone enables Burn to rapidly scale our IoT-enabled induction stove across Kenya, Uganda, and Zambia. We’re providing low-income households with a zero-emission, digitally monitored alternative to charcoal and wood,” said Peter Scott, Founder and CEO of Burn.
The SPV, which will manage the program, oversees sales, distribution, and servicing of the cookers. Carbon credits generated by the appliances will be owned by the SPV, while the revenue will be shared among investors to ensure long-term sustainability.
According to AfDB’s Director for Renewable Energy and Energy Efficiency, Daniel Schroth, this is the Bank’s first carbon finance transaction of its kind.
“SEFA is playing a critical role in mitigating carbon market risks and enhancing the program’s financial sustainability,” Schroth said.
In Kenya, over 15 million households still cook with charcoal, wood, or liquefied petroleum gas (LPG) despite having access to electricity.
Apart from the environmental benefits, the program is expected to stimulate job creation. Burn’s expansion is expected to include manufacturing, distribution, and after-sales services, creating employment opportunities across Kenya.
