By Obiabin Onukwugha
The African Development Bank (AfDB) is set to launch a Ksh1.3 billion programme aimed at distributing about 115,000 electric cookers to low-income households, in Kenya, aimed at reducing their dependence on charcoal.
The programme, known as the Burn Electric Cooking Expansion Programme (BEEP), is currently running in Uganda, Zambia and Kenya.
According to the AfDB, the program will transform the livelihoods of families who have electricity but still depend on charcoal, which poses a threat to the environment.
The project also 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 and create jobs the people in Kenya.
AfDB’s Director for Renewable Energy and Energy Efficiency, Daniel Schroth, who commented on the initiative earlier, stated that 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.
The initiative is spearheaded by Burn Manufacturing, a Nairobi-based clean cookstove company operating in over 10 African countries.
It was gathered that 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.
“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,” Peter Scott, Founder and CEO of Burn said.
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.
kenyans.co.be reports that in Kenya, over 15 million households still cook with charcoal, wood, or liquefied petroleum gas (LPG) despite having access to electricity.
