market segmentation study

1

Market Segmentation StudyPhase 1 Top Five Broad Segments

Top Three Segments

2

Overview• Project Approach• Macro Environment

– Climate and Environment– Counties and Provinces– Demographics– Employment– Income– Education– Economy– Political Structure– Technological Infrastructure

• Energy Demand– Fuel Use– Cooking Fuel

• Energy Stacking• Factors Influencing Energy Demand

– Biomass– Kerosene– LPG– Electricity

• Cook Stove Industry– Cook Stove Industry by Region

3

Overview• Cook stove Consumer• Net Socio Economic Benefits of ICS

– Improved Fuel Wood Stoves– Improved Charcoal Stoves– Improved Kerosene Stoves– Improved LPG stoves– Improves Electric Stoves

• ICS – Upfront Costs• Fuel Costs • Barriers to Improved Cook Stoves adoption• ICS Market Needs• Factors Influencing ICS adoption – Market Drivers• Segments of Energy and Cook Stove Consumers

– Broad Segments– Top Three Segments

4

AcronymsAGOL Africa Gas and Oil Limited

CBO Community Based Organization

ICS Improved Cook Stoves

KUSCCO Kenyan Union of Savings and Credit Co-operatives

KRC Kenya Railway Corporation

LPG Liquefied Petroleum Gas

MOU Memorandum of Understanding

MF Microfinance

MFI Microfinance Institution

NGO Non Governmental Organization

SACCO Saving and Credit Co-operative Society

5

Introduction• co2balance, in partnership with the Global Alliance for Clean Cookstoves, have identified the main

consumer segments in Kenya and closely examined those with the greatest potential to reach large scale improved cook stove and fuel adoption.

• The objective of this study was to assess the viability and successful uptake of improved cook stoves and fuels in different segments in Kenya at the local level. The information obtained will be used to enhance current efforts of improved cook stove adoption and determine where additional resources should be applied in order to have the greatest impact on the cook stove market.

• There were two parts of this study: Literature review of determinants for fuel use and improved cook stove purchase in Kenya – The

analysis considered 12 variables as a determinant of adoption. These variables influence purchase; age, gender, head of household, home ownership, family size, geographic location, fuel used in cooking, employment (Income Quintiles), fuel access, education level, fuel cost and willingness to pay.• We found that improved cook stove adoption and fuel choices are significantly influenced by socio-economic status and

demographic profile of households, energy choices and uses, energy cost and expenditure.

Survey Analysis - Segments across the Central, Coastal and Western regions were examined using these variables. • Surveys were conducted in the field to determine fuel and cook stove use and potential uptake of large scale improved

cook stove projects in the regions.

6

Project ApproachEnergy

Demand

Cook stove Consumer

Cook stove Industry

Macro-environment Market

barriers

Market needs Market

drivers

Strategy Development

Segments of Energy and Cook stove

Consumers

Top Three segments of Energy and Cook Stove

Consumers

Survey Analysis

Literature Review

7

Macro Environment – Climate and Environment

• Kenya is located on the East African coast, bordering the Indian Ocean, between Somalia and Tanzania. Border countries include Ethiopia (861 km), Somalia (682 km), South Sudan (232 km), Tanzania (769 km) and Uganda (933 km). The total area of the country is 580,370 sq km; land 569,140 sq km and water 11,227 sq km.

• The climate varies from tropical along coast to arid in interior. The climate is influenced by the inter-tropical convergence zone and relief and ranges from permanent snow above 4 600 metres on Mt. Kenya to true desert type in the Chalbi desert in the Marsabit district in the north of the country. About 80 percent of the country is arid and semiarid, while 17 percent is considered to be high potential agricultural land, sustaining 75 percent of the population. The forest cover is about 3 percent of the total land area.

• The average annual rainfall is 630 mm with a variation from less than 200 mm in Northern Kenya to over 1 800 mm on the slopes of Mt. Kenya. The rainfall distribution pattern is bimodal with long rains falling from March to June and short rains from October to November, for most parts of the country.

• Natural resources include limestone, soda ash, salt, gemstones, fluorspar, zinc, diatomite, gypsum, wildlife and hydropower. Agricultural land covers approximately 33% of the country. Land use includes arable land (9.48%), permanent crops (1.12%), other (89.4%). Recurring droughts and flooding during rainy seasons are the most significant hazards affecting Kenya.

• Kenya depends on its biodiversity and natural resources for much of its economy. Kenyans highly depend on the nation’s forests, rivers, lakes and soil for sustainable living. Environment issues include water pollution from urban and industrial wastes; degradation of water quality from increased use of pesticides and fertilizers; water hyacinth infestation in Lake Victoria; deforestation; soil erosion; desertification and poaching.

Source: CIA World fact book

8

Macro Environment - Counties and Provinces

Region Counties

Central - 11a-Nyandarua, 1b-Nyeri, 1c-Kirinyaga, 1d-Murang'a, 1e-Kiambu

Coastal - 22a-Mombasa (city), 2b-Kwale, 2c-Kilifi, 2d-Tana River, 2e-Lamu, 2f-Taita-Taveta

Eastern - 3

3a-Marsabit, 3b-Isiolo, 3c-Meru, 3d-Tharaka-Nithi, 3e-Embu, 3f-Kitui, 3g-Machakos, 3h-Makueni

Nairobi - 4 4a-Nairobi City

North Eastern - 5 5a-Garissa, 5b-Wajir, 5c-Mandera

Nyanza - 66a-Siaya, 6b-Kisumu, 6c-Homa Bay, 6d-Migori, 6e-Kisii, 6f-Nyamira

Rift Valley - 7

7a-Turkana, 7b-West Pokot, 7c-Samburu, 7d-Trans Nzoia, 7e-Uasin Gishu, 7f-Elgeyo-Marakwet, 7g-Nandi, 7h-Baringo, 7i-Laikipia, 7j-Nakuru, 7k-Narok, 7l-Kajiado, 7m-Kericho, 7n-Bomet

Western - 88a-Kakamega, 8b-Vihiga, 8c-Bungoma, 8d-Busia

Kenya is divided into 47 counties. These counties make up the former “Province” areas of Central, Coastal, Eastern, Nairobi, North Eastern, Nyanza, Rift Valley and Western regions.

For the purpose of this study, statistical data from the former 8 Provinces were used to find segments at the regional and local level.

9

Macro Environment - Demographics

Currently, Kenya's population is estimated to be 44,037,656

77.80% of the population lives in rural areas whilst 22.80% resides in urban areas. The current rate of urbanization is at 22%

Population growth rate – 2.444%

Main religious bodies - Christian 82.5% (Protestant 47.4%, Catholic 23.3%, other 11.8%), Muslim 11.1%, Traditionalists 1.6%, other 1.7%, none 2.4%, unspecified 0.7% .

Main Languages - English (official), Kiswahili (official), numerous indigenous languages.

Life expectancy at birth - 63.07 years Males - 61.62 years Females - 64.55 years

Main ethnic groups - Kikuyu 22%, Luhya 14%, Luo 13%, Kalenjin 12%, Kamba 11%, Kisii 6%, Meru 6%, other African 15%, non-African (Asian, European, and Arab) 1%


10

Macro Environment - Employment

Nairobi

Centra

lCoast

Easter

n

North Ea

stern

Nyanza

Rift Valley

Western

0

10

20

30

40

50

60

70

80

0

10

20

30

40

50

60

70

Spatial distribution of 15-64 employment sector

Working Not Working Female Male

Perc

enta

ge (%

)

Perc

enta

ge (%

)

Unemployment is very high in Kenya. Unemployment increased to 40% in 2011 from 12.70% in 2006. The unemployment rate measures the number of people actively looking for a job as a percentage of the labor force. Kenya also manifests considerable regional disparities in employment and human development. Consistent with the regional trends in wage employment, Nairobi has the highest number of informal sector employment while North Eastern has the lowest.

Women make up 47% of the labor force whilst males account for 53%.

Sources : Nyaga R.K., (2010), Omolo. J., (2012)

11

Income QuintilesIncome Bracket CategoryIncome Quintile 1 Households living below the urban poverty line Kshs. 2913 per month

Households living below the rural poverty line Kshs. 1562 per month

Rural households in extreme poverty Kshs. 988

Income Quintile 2 Households living above the urban poverty line Kshs. 2913 per month

Households living above the rural poverty line Kshs. 1562 per month

Ideal income level between Kshs. 6120 and Kshs. 9319

Income Quintile 3 Income levels between Kshs. 9320 and Kshs. 13015

Income Quintile 4 Income levels between Kshs. 13016 and Kshs. 20408

Income Quintile 5 Income levels above Kshs. 20409

Sources: KNBS (2007), KIPPRA (2010)

12

Macro Environment - Education

• Access to pre-school and primary education in Kenya is high; 70%. The gender parity at pre-primary and primary education stands at 51.2% and 48.8% (pre-school) and 51.3% and 48.7% (primary education) for boys and girls respectively. The parity deteriorates as they progress; at University level, it widens to 58% and 42% for boys and girls respectively.

• The expenditure on education is at 6.7 % of the total GDP. Adult literacy rates are higher in men than women; including urban and rural regions . Nairobi and Central regions have the highest literacy rates for women; 84.20% and 75.80% respectively. The North Eastern region has the lowest literacy rates for both men and women; 37.50% and 11.60% respectively.

Source: World bank

13

Macro Environment - Economy

GDP (purchasing power parity) $76.07 billion (2012 est.) $72.37 billion (2011 est.) $69.33 billion (2010 est.)

Exports - commodities Tea, horticultural products, coffee, petroleum products, fish, cement

GDP (official exchange rate) $41.84 billion (2012 est.) Exports - partners Uganda 9.9%, Tanzania 9.6%, Netherlands 8.4%, UK 8.1%, US 6.2%, Egypt 4.9%, Democratic Republic of the Congo 4.2% (2011)

GDP - real growth rate 5.1% (2012 est.) 4.4% (2011 est.) 5.8% (2010 est.)

Imports Machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics

GDP - per capita (PPP) $1,800 (2012 est.) $1,800 (2011 est.) $1,700 (2010 est.)

Imports - partners China 15.3%, India 13.8%, UAE 10.5%, Saudi Arabia 7.3%, South Africa 5.5%, Japan 4% (2011)

GDP - composition by sector agriculture: 24.2% industry: 14.8% services: 61% (2012 est.)

Kenya’s economy is relatively strong, however, it has been plagued by corruption and by reliance upon several primary goods whose prices have remained relatively low. As a result of high food and fuel import prices, Kenya has experienced chronic budget deficits, inflationary pressures, and sharp currency depreciation. The discovery of oil in March 2012 has provided an opportunity for Kenya to balance its growing trade deficit if the deposits are found to be commercially viable and Kenya is able to develop a port and pipeline to export its oil. Following the elections held on March 4th, Kenyan economic performance in 2013 is now proving to be highly dependent on the capacity of the country to attract foreign investment and tourism.


14

Economic Indicators – Food ItemsRegion Kenya Rural UrbanFood 1754 1453 2642

Cereals 359 360 355

Bread 72 43 156

Tubers 106 108 99

Poultry 38 33 53

Meat 158 110 301

Fish 39 28 72

Milk, Eggs 196 163 291

Oils 71 62 97

Fruits 89 68 150

Vegetables 160 130 249

Pulses 103 108 85

Sugar 111 106 125

Non-alcoholic beverages 68 47 130

Alcohol 58 37 120

Restaurants 113 37 335

Spices and condiments 15 12 22

Average food consumption per adult / month in Kshs.

Source: KNBS (2007)

15

Economic Indicators – Non Food ItemsRegion Kenya Rural Urban

Total Non- Food 1678 878 4032

Tobacco 28 24 40

Water 33 17 82

Fuels 177 113 366

Refuse, Sewage 2 0 6

Clothing & Footwear 304 232 517

Household, Personal 191 117 407

Furnishings & Maintenance 23 17 40

Domestic Services 45 22 112

Transportation 232 108 596

Communication 99 39 275

Recreation 56 16 174

House rent 238 - 937

Education 224 152 435

Health 27 22 43

Average non food consumption per adult / month in Kshs.

Source: KNBS (2007)

16

Macro Environment – Political Structure• Kenya has 47 counties. The country has a mixed legal system of English common law, Islamic law,

and customary law; judicial review in a new Supreme Court established pursuant to the new constitution.

• The Chief of state is President Uhuru KENYATTA (since 9 April 2013); Deputy President William RUTO (since 9 April 2013); the president is both the chief of state and head of government

• The head of government is President Uhuru KENYATTA (since 9 April 2013); Deputy William RUTO (since 9 April 2013); according to the 2008 power sharing agreement the role of prime minister was created though not well defined, following the new constitution the position was abolished after the March 2013 elections.

• The bicameral parliament consists of a Senate (67 seats) and a National Assembly (349 seats); members to serve five-year terms. Elections were last held on 4 March 2013 (next to be held in 2018). The President is elected by popular vote for a five-year term (eligible for a second term); in addition to receiving a simple majority of votes, the presidential candidate must also win 25% or more of the vote in at least five of Kenya's seven provinces and one area to avoid a runoff.


17

Macro Environment – Parties and Pressure Groups • Political parties and leaders:• Kenya African National Union or KANU [Gideon MOI]• The National Party Alliance or TNA [Uhuru KENYATTA]• National Rainbow Coalition-Kenya or NARC-Kenya [Martha KARUA]• Orange Democratic Movement-Kenya or ODM-K [Kalonzo MUSYOKA]• Party of National Unity or PNU [Mwai KIBAKI]• United Democratic Forum Party or UDF [Musalia MUDAVADI]• United Republican Party or URP [William RUTO]• Wiper Democratic Movement or WDM [Kalonzo MUSYOKA]

• Political pressure groups and leaders:• Council of Islamic Preachers of Kenya or CIPK [Sheikh Idris MOHAMMED]• Kenya Human Rights Commission [L. Muthoni WANYEKI]• Muslim Human Rights Forum [Ali-Amin KIMATHI]• National Muslim Leaders Forum or NAMLEF [Abdullahi ABDI]• Protestant National Council of Churches of Kenya or NCCK [Canon Peter Karanja MWANGI]• Roman Catholic and other Christian churches;• Supreme Council of Kenya Muslims or SUPKEM [Shaykh Abdul Gafur al-BUSAIDY]• Other: Labour unions, Kenya Association of Manufacturers, Kenya Private Sector Alliance


18

Macro-environment – Technological Infrastructure

Sector Successes ChallengesInformation and Communication Technology Institutional reforms in the power sector have

reduced the burden of subsidies on the public by about 1% GDP .

Modernized ICT sector now offers 90 percent of the population access to a GSM cell phone signal

Strengthen competition to bring down prices.

Ensure competitive international gateway.

Air Transport Leading regional airline

Major air hub for Africa

Relieve capacity constraints at Jomo Kenyatta International Airport.

Ports Major regional shipping hub. Substantial investment to reduce capacity issues

Institutional reforms to increase efficiency.

Energy Major institutional reforms

Cost-recovery pricing

Large efficiency gains by KPLC (Kenya Power)

Improve reliability through new investment.

1,000 megawatts generating plant will be needed over the next decade.

Bring down costs of power supply.

Railways Strategic regional rail corridor Revisit design of rail concession

19

Macro-environment – Technological Infrastructure

Sector Successes ChallengesRoads Sound road fund in place Major rehabilitation backlog

Improve quality of public investment

Urban infrastructure Low levels of access to services

High rates of tenancy and insecure tenure

Water Resources Water-resources-managementauthority in place.

Improved drinking water sourceUrban – 82% of populationRural – 52% of population

Increase water storage capacity

Increase irrigated area by 50%

Strengthen water resources management and river-basin institutions

Water and Sanitation Major institutional reforms

Improved Sanitation facility access;Urban – 32% of populationRural – 32% of population

Address under pricing of water

Cut distribution losses

Rural access

Source: Africa Infrastructure Country Diagnostic Country Report (2010)

20

Energy Demand• Firewood: Approximately 89% of rural and 7% of urban households regularly use firewood, giving a national average of about

70% of all households. The average annual per capita consumption is approximately 741 kg and 691 kg for rural and urban households, respectively.

• Charcoal: Use of charcoal is about 47% at the national level with use of over 82% and 34% of urban and rural households, respectively. Per capita consumption is 156 kg in urban areas and 152 kg in rural areas.

• Farm Residues: Farm residue is used as a source of cooking and lighting fuel in areas where energy demand exceeds supply and in certain seasons when wood supply is limited. The quantities of residues will depend on yields of a particular crop and are usually proportional to the area planted. Overall, about 21% of households use farm residues, but their use is mainly in rural areas with 29% households as compared to 0.5% in urban households.

• Wood Waste: There are two major sources of wood waste. Logging sites where branches and tops remain after felling, supply about 35% of fuel wood. The other source is sawmilling sites where sawdust, bark and small off-cuts are available for fuel wood. Only 2.5% of households use wood waste. Use is mainly in urban areas by 3.7% of households as compared to 2.1% in the rural areas.

• Kerosene: Kerosene is often regarded as a “poor man’s” fuel and is used by approximately 92% of all households (rural; 94% and urban; 89%). Kerosene is exempted from some taxes in comparison with other fuel products.

• LPG: Only 7.8% of the population (23% urban and 1.8% rural) use LPG. Average per capita consumption is only 3.6 kg and 9.7 kg for rural and urban areas respectively. LPG is used (cooking 3.5%) along with firewood in rural areas while in urban areas; it is used as a supplement for electricity.

• Electricity: Electricity in Kenya is expensive for the majority of the households, and only 46% of urban and 3.8% of rural households have access to electricity. Nationally, this translates to only 15% households with access to electricity.

• Biogas: There are over 6748 biogas plants in Kenya, however only about a quarter of these plants are believed to be operating by design. The Kenya National Domestic Biogas Program (KENDBIP) is currently funded through the Ministry of Energy and the Dutch Ministry of Foreign Affairs, has a goal of constructing 12,000 high quality, functioning plants by 2014.

Sources: SCODE, Kenya National Energy Policy (2012),

21

Percentage Use of Cooking Fuel- Urban/Rural Areas

Source: Ministry of Health (2007)

FirewoodCharcoalKerosene Gas Electricity Other Not Stated0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

RuralUrban Total Kenya

Fuel Used

Perc

enta

ge u

sed

in co

okin

g (%

)

Perc

enta

ge u

sed

in co

okin

g Ke

nya

(%)

22

Nairobi

Central

Coast

Eastern

North Eastern

Nyanza

Rift Valley

Western

Urban

Rural

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fuel wood

Charcoal

Kerosene

LPG

Electricity

Other

Biomass: Over 70% of the consumers in Kenya use biomass while 30% use other fuels. Biomass provides over 65% of energy requirements.

Rural households tend to use firewood for cooking ~86%, whilst the majority of urban households consume charcoal ~82%

Percentage Distribution of Cooking Fuel by Region

Source: Ministry of Health (2007)

23

Energy Stacking

Energy consumption patterns in Kenya portray more of fuel stacking than fuel switching, where households are observed to be using multiple fuels. Fuel switching is the main response to increasing incomes in urban areas while fuel stacking or multiple fuel use is seen to dominate in rural areas.

Fuel stacking occurs in 54% of Kenyan households; using two fuels with 2% using only one fuel type. Lower income households tend to not utilize LPG, Electricity and Solar Energy sources because of the high cost of installation.

Source: KIPRRA (2010), Schlad and Zuzarte (2008)

24

Factors Influencing Energy Demand – Biomass (Fuel Wood and Charcoal)• In rural areas, the lowest income households depend on firewood the most. This is in line with

previously documented consumption patterns for the country. Approximately 76% of households in Kenya obtain all their firewood for free through collection, 17% of households regularly purchase it while 7% supplement their free collection by purchasing some firewood. Firewood is mainly used for cooking and space heating.

• Firewood has the highest energy budget share on average for both rural (11.6%) and urban (9.34%) compared to other fuels.

• The budget share for charcoal is driven by factors such as socioeconomic status, prices, education and location of household.

• Key Determinants: Demand for charcoal is inversely related to its own price (as the price increases, less of it is demanded). Other important factors in the demand for charcoal includes, household size, price of LPG, as well as primary education which is inversely related to demand. Households in urban areas are more likely to use charcoal than those in rural areas; Eastern, Rift Valley and Western Provinces have a negative influence on demand for charcoal. Households in these regions experience reduction in budget share of charcoal due to certain climatic characteristics unique to these regions. There is a high use of kerosene in these regionsHousehold energy demand in Kenya: An application of the linear approximate almost ideal demand system

Sources: Sustainable Community and Development Services (2010), KIPPR (2010), Ngui. D., et al (2011)

25

Kerosene

• Urban households use around 90 litres of kerosene per year, rural at 41 litres per year. On average Kerosene prices ranges from Kshs. 81.03 – 83.83 per litre. Overall price per year of kerosene for urban households is around Kshs. 7293 – 7545 and rural households Kshs. 3322 – 3437.

• Some dealers have adulterated petroleum products in efforts to make higher profits at the expense of Government taxes. Current retailing practices lead to high mark-up prices (sometime as much as 300%) in remote areas even though tax exemption is aimed at lowering prices.

• Key Determinants: The determinants for kerosene use at the household are occupation, total energy expenditure, household size, fuel wood price, education level and price of LPG. As the household size increases, the budget share on kerosene declines. This could be explained by the fact that as the household size increases, the household switches to other fuel types such as charcoal, fuel wood and even LPG to meet increased demand for energy. This is an indication that most households use multiple fuels as a safety net to cushion themselves against the failure of one source.


26

Liquefied Petroleum Gas and Electricity• LPG - Key determinants: The share of budget for LPG in Kenya is mainly driven by, total

expenditure on LPG, kerosene prices, fuel wood price and its own price. As the price of charcoal increases, the budget share on LPG increases.

• As the price of LPG increases, the budget share also increases. Also as the price of charcoal increases, the budget share of LPG increases. This could be explained by the household opting to use more of LPG when prices of charcoal increase, since it is cleaner and faster in food preparation compared to the latter. In terms of gender, a household headed by female, is more likely to reduce demand for LPG than that headed by a male.

• Electricity - Connectivity to electricity in Kenya varies across provinces with Nairobi having the highest connection with 53.47 % of total households. Central province is second with 42.4 % and the North Eastern and Western Provinces has the least connection rates of 14.5% and 14.7 % respectively. The national connection rate is estimated to be around 28.9 %.


27

Cook Stove Industry

Kenya Rural Urban0

20

40

60

80

100

120

60.8%

78%

9.1%

8.4%

10.9%

1%

7.1%

4%

16.6%

6.5%

3.9%

14.3%

Improved Cookstove

Ordinary Stove

Improved Traditional 3 Stone Fire

Traditional 3 Stone Fire

~60% households use traditional three stove fires as primary cook stove. This is higher in rural areas ~75% than urban households ~10%.

KIHBS 2005/2006

28

Cook Stove Industry - Region

Nairobi Coast Eastern North Eastern Nyanza 0

20

40

60

80

100

120

1.5%

53.2%

79.4%89.2%

76%

4.8%

11.2%

4.5%3.2%

7.3%

5.2%

6%

2.9%4.7%

8.8%

65.3%

22.9%

3.6%0.2%

2.9%

19.6%

3% 0.8% 0.9%

OtherElectric CookerGas CookerKerosene StoveImproved CookstovesOrdinary Stove Improved Traditional 3 Stone FireTraditional 3 Stone Fire

Perc

enta

ge (%

)

KIHBS 2005/2006

29

Cook Stove Industry - Region

Central Rift Valley Western0

20

40

60

80

100

120

21.9%

9.6%

34.8%

16.%7 37.4%

10.3%12%

12.8%9.9%

20.7%8.6%

%

17.6%

7% 14.4%

3.4%

3.8%

%

7.7%

20.3%9.1%

OtherElectric CookerGas CookerKerosene StoveCharcoal MetalKenya Ceramic StoveImproved Cookstove (firewood)Traditional 3 Stone Fire

Perc

enta

ge (%

)

Three stone fires have lost its predominant position in three Provinces (Central, Rift Valley and Western).

The vast majority of improved cook stoves are found in rural areas (76%).

Lowest incomes possess the cheapest available improved cook stoves, the Jiko Kisasa one pot (56%).

The medium and better off households possess mainly two pot stoves (62% and 51% respectively). While one third of households have a Rocket Mud Stove two pot.

Poor households do not have expensive models of stoves and they tend to have fewer improved cook stoves than higher income households.

GTZ (2009)

30

Cook Stove Consumer – Purchase and Use

• There is little information on the uptake and use of improved cook stoves, but some empirical evidence suggests that high use cannot be assumed even when stoves are highly subsidized or given free of charge. However, improved cookstove use is directly correlated with socioeconomic benefits to consumers and these benefits are driven by stove type.

31

Net Socioeconomic Benefits of Improved Fuel wood Cook Stoves

For fuel wood stoves, the most important factors influencing the net benefits of the switch to this stove are the use of the stove and its relative time efficiency (compared to the traditional 3 stone fires). These parameters are important because a large proportion of the benefits of this stove come from time savings, but these are only captured if it is used often and efficiently. Inefficient stove use imposes a net time cost on users.

Source: Jeuland. A.M., Pattanayak. S (2012)

32

Net Socioeconomic Benefits of Improved Charcoal Cook Stoves


33

Net Socioeconomic Benefits of Improved Charcoal Cook Stoves

For charcoal stoves, the most important drivers tend to be in parameters that affect the relative cost of fuel: the market price of charcoal, and the amount of baseline fuel needed and baseline energy efficiency, which influence the relative gains obtained from the new stove. Also important are the use rates, the market wage (income quintile) and baseline cooking time, the latter two of which determine the value of collection and cooking time savings.


34

Net Socioeconomic Benefits of Kerosene and LPG Cook Stoves

For kerosene and LPG stoves, the incidence and cost-of-illness, which determine some of the health gains, figure much more prominently. Also important are the value of time savings (determined by relative time efficiency, market wage, and shadow value of time savings).


35

Net Socioeconomic Benefits of Electric Cook Stoves

Net benefits of the electric stove are most strongly affected by its relative efficiency and electricity prices.


36

ICS Current Market– Upfront Costs

Envir

ofit G-3300 Stove

Philips N

atural D

raft St

ove HD4008

Stove

Tec G

reenfire

Wood Stove

Upesi Porta

ble Stove

KCJ (Ken

ya Ceramic J

iko) S

tandard Stove

Jiko Poa

Jiko Kisa

sa

Kuni Mbili

Brick R

ocket s

tove

kerosene s

tove

LPG St

ove

Save

80

Uhai stove

01020304050607080

31 31

9 9.5 616

410

20

6

20

72

11

Cost - USD

Cost

in U

SD

37

Cook Stove Consumer - Fuel Costs• Urban households use around 90 litres of kerosene per year, rural at 41 litres per year. On average

Kerosene prices ranges from Kshs. 81.03 – 83.83 per litre. Overall price per year of kerosene for urban households is around Kshs. 7293 – 7545 and rural households Kshs. 3322 – 3437.

• Charcoal is a preferred household energy source due to its affordability. It is the cheapest urban household cooking fuel currently costing about Kenya shillings Kshs. 12,000 per household per year. Charcoal is usually purchased in small quantities of 1.5 kilogrammes costing between Kshs. 30-50, hence; low income households and businesses find it affordable to buy charcoal every day in small quantities.

• Average LPG cost per household in Kenya is around Kshs. 31,760 per year. The current (June 2011) price of LPG is Kshs. 2,500 for a 13 kilogramme cylinder or Kshs. 1,000 for a 6 kilogramme cylinder.

• Per capita electricity household consumption averages 844 kwh in urban and 544 kwh in rural areas. Higher income urban households consume the largest amount of electricity (1,352 kwh) compared to 606 kwh by the lowest income group. Average Electricity cost per household in Kenya is around Kshs. 59,200 per year.

38

Cook Stove Consumer - Fuel Costs

Fuel Costs (Kshs)Kerosene price(Kshs/l) 81.03 - 83.83Fuel wood price(Kshs/bundle) 70LPG price(Kshs/kg) 217.27Electricity price(Kshs/Kwh) 11.62Charcoal price(Kshs/4kg tin) 61.4Motor Spirit Premium price(Kshs/l) 119.23Automotive Gas Oil price(Kshs/litre) 66.13Lubricant price(Kshs/ l) 382.657

39

Cook Stove Consumer - Fuel cost per household

Fuel w

ood

Charcoal

Electr

icity

Kerosen

eLP

G

Lubric

ants

Motor Spirit

Premium price

Automotive Gas

Oil pric

eBiogas

0

1000

2000

3000

4000

5000

6000

7001000

4933

277

2647

1254.8

3509.34

2243.52

3000

Total expenditure on fuel (Kshs/month)

Kshs/Month

Fuel

Cost

per

mon

th (K

shs)

40

Cookstove Consumer - Fuel Perception Map

High Price

Low Price

Low ValueHigh Value

KeroseneQuintile 1, 2 and 3Rural, Urban and Peri-Urban

Fuel woodQuintile 1, 2 and 3 Rural and Peri-Urban

CharcoalQuintile 1, 2 and 3Rural, Urban and Peri-Urban

LPGElectricityQuintile 4 and 5Urban and Peri-Urban

41

Barriers to ICS adoptionBarriers

Market Approach Despite the benefits of improved cook stove adoption, several projects have struggled to make an impact over decades of effort . Despite high awareness of improved cook stoves by rural households, adoption rate is quite low. Even though people are aware of ICS technology, they are unaware of its benefits.

Improved cook stove programs are more successful when the cook stove is physically seen by prospective customers. This provides concrete and observable benefits to the implementer and is best done through stakeholder meetings. In urban areas, where fuel is often purchased, users are motivated by stoves that save money . The same can be said about rural areas; people are generally motivated by saving money on fuel efficient stoves

Health - IAP While there is an abundance of literature on improved cook stoves to mitigate household air pollution, results prove to be statistically insignificant in cook stove adoption. The type of fuel used seems to produce a positive correlation with improved health benefits, for example, improved fuel wood stoves substantially reduce exposure however; they give fewer health benefits than improved charcoal stoves, which can reduce exposure to very low levels. Improvement of health through reducing indoor air pollution (usually ranked high by cook stove developers) rarely ranks highly amongst improved cook stove users .

Marketing stoves based on the improved health indicators has so far been ineffective. This is due to lack of proper education and users do not seem to value health benefits highly enough to overcome traditional cooking methods. Research has shown that marketing the value of the stoves as a whole increases uptake, e.g., an improved stove can be seen as contributing to a cleaner kitchen, adding new cooking functionality, or providing a status symbol associated with modernity. Commercial players who are the most innovative in creating observable value for their customers will more than likely increase uptake of improve cook stoves and run a successful project.

Source: Slaski . X and Thurber, M., (2009), Mtsami. P.T., (2012)

42

Barriers to ICS adoption

BarriersGender, Age and Education The use of improved cook stoves is normally associated with a woman’s role in the household ; hence women have a

significant influence on their adoption rate.

In lower income households, males are often the head of the household; however women still have valuable input in financial decisions of the household

Women, who bear the brunt of the costs associated with cooking, can have a significant input in fuel choice. The education level of the wife can influence the adoption rate of improved cook stoves. i.e., higher the education level of the wife in a household the more likely the household will adopt improved cook stove technologies. Education level of the woman works in conjunction with age to fully influence the uptake of improved cook stoves.

Studies have shown that uptake of improved cook stoves are higher in households in the quartile of age 25-54.

Sources: Silk. B.J., et al (2012), P. MO and Fraser GCG., (2006 ), Mtsami. P.T., (2012)

43

Barriers to ICS adoption – Fuel Costs and Affordability

Barriers

Fuel cost and affordability The price competitiveness of fuel is a significant barrier to improved cook stove adoption.

In rural districts where wood fuel is collected for free, households are less inclined to use improved cook stoves. As in the case of Wundanyi, Mwatate and Voi Districts, 79% of rural households who got their fuel wood free of charge were not using improved cook stoves and that 62% of households who bought their fuel wood were using improved cook stoves. In rural areas the implementation of improved cook stoves should target areas where majority of the households buy their fuel. This can help promote adoption rates because such communities are motivated to adopt the new technologies by the fact that they will save on fuel costs. In rural areas where literacy levels are low (below primary level education), implementation of improved cook stoves should work alongside adult education programs targeting women.

Source: Mtsami. P.T., (2012)

44

Barriers to ICS Adoption – Fuel Costs and AffordabilityBarriers

Charcoal and Firewood

Charcoal and firewood costs are generally low and there is a dominance of charcoal stoves in urban regions . The low price of charcoal and firewood results can be attributed to the fact that both are obtained from a natural resource that can be tapped with little or no direct cost to producers or consumers. Charcoal and firewood are the cheapest form of cooking fuel for urban and rural areas respectively.

Charcoal production is still considered an illegal activity in rural Kenya. However, recent legislation has supported the production of sustainable charcoal.

Charcoal is normally considered low cost and affordable. But due to the fact that it is repeatedly bought in small quantities it ends up being more expensive in the long run compared to other energy sources e.g. LPG gas

Kerosene Cost-effective alternatives, like kerosene, have had a massive uptake in Kenya (when compared to traditional fuel) because the Kenyan Government has removed all taxes on kerosene. Though not classified as a clean fuel, it is seen as a general improvement from using wood fuel. Therefore, many consumers in urban areas switched to kerosene, which is now used in a significant majority (over 85%) of urban households .

Given the importance of kerosene in meeting urban poor household energy needs, targeted and time-limited subsidies for kerosene stoves and lamps could expand the kerosene market, widen access among the urban poor, lead to local investment in kerosene stove and lamp manufacture and reduce overall energy costs.

However, the use of kerosene is expected to decrease significantly by 2030. The Government of Kenya has announced plans to phase out the use of kerosene (Kerosene free initiative) for lighting and cooking, and replace it with clean energy products such as solar lighting kits. 1 million solar lighting kits are expected to be disseminated into Kenyan households by 2030. This will have significant impacts on the kerosene cook stove market.

Sources: EEDNA (2008), EAC (2008), World bank (2011)

45

Barriers to ICS adoption - Fuel Costs and AffordabilityBarriers

LPG Policies have retarded a further shift towards clean cooking fuels by maintaining high levels of taxation on some products like LPG. The use of LPG as a household cooking fuel is minimal in rural Kenya.

LPG has a very high upfront cost which is normally beyond the reach of the majority of the urban poor. About 11.9% of urban households cooking using LPG gas compared with rural households where only 0.7% uses it. This is attributed to a number of reasons. Where LPG is marketed by petroleum companies, it is still yet to have a wide coverage in many areas. For many years, the country has had only a small LPG handling facility in Nairobi. The Kenya Pipeline Company plans to build a 2000 tonne storage and cylinder filling facility in Nairobi, as well as storage and distribution facilities in Nakuru, Eldoret, Sagana and Kisumu.

Consumers are also held captive by the few out letting companies through limited out letting and customized cylinders and valves. The Government sought to address this by standardizing cylinders and valves. Another major challenge with LPG is that being a petroleum product, it is vulnerable to the escalating international oil prices. Income levels and cost of other fuels and several factors determine LPG cook stove uptake, these are: availability, reliability of LPG supply, fears about safety, unfamiliarity with cooking with LPG, lack of knowledge about the harm caused by smoke from solid fuels burned in traditional stoves, and cultural preferences.

Sources: EEDNA (2008), EAC (2008), World bank (2011)

46


Barriers

Political Stability Political and institutional risks in Kenya can negatively impact on the enabling environment which can have detrimental impacts on the development and implementation of improved cook stove projects.

The key concern relates to the uncertainty of the regulatory process and the likelihood that it can be affected by political regime changes.

Private and public sector cook stove projects are currently encouraged by the government but certain changes under consideration in Kenya (e.g. taxation on fuels and revenue share on carbon market streams) may result in increased administrative burden and costs, and lower returns for CDM developers and buyers.

47


Barriers

Project developers Project developers face a variety of challenges when implementing ICS projects. The following issues can hinder purchase by end user if not addressed at an early stage in the ICS implementation process;

•Poor feasibility / Lack of technical expertise – ICS projects may fail if the technical expertise is not fully aware of the requirements of a successful project from the onset.•Bad product / Lack of understanding of community needs – product design and functionality does not meet the needs of end user. •Lack of investment. •Lack of ICS maintenance and proper monitoring •Bad reputation – End users knowledge of failed projects in other areas may hinder ICS adoption or purchase.•Lack of understanding from DNAs.

48

Improved cook stoves

Rural / Urban Women (Head of

household)

Affordable cook stoves

Willingness to payRural / Urban Men

(Head of household)

Age 15-64 (Working age)

Income quintile 1 Heavily subsidized ICS / microfinance Fuel wood, charcoal

Income quintile 2 Subsidized ICS / microfinance Fuel wood, charcoal

Income quintile 3 - 5

Higher willingness to pay for ICS/fuel than lower income groups

Fuel wood, charcoal,

LPG, electricity

Cleaner fuel LPG, Electricity

Education level up to

secondary / tertiary

Willingness to pay

ICS Market NeedsMarket needs Groups of

consumers

Market requirements

49

Factors Influencing ICS adoption – Market Drivers• Age• Gender• Head of household• Home Ownership• Family size• Education level• Geographic Location – including urban and rural• Employment (Income Quintiles)• Fuel Type (used in cooking)• Fuel Availability• Fuel Cost (Affordability)• Willingness to Pay


50

Factors Influencing ICS adoption – Market Drivers Rank

Home Ownership Age

Gender

Education Level Fuel cost

1 2 3 4 5Fuel access Fuel type (used in

cooking)Stove cost

Head of household Geographic location Level of income

Willingness to pay

Importance

Ranking

1 – Lowest Rank, 5 – Highest Rank

51

Segments of Energy and Cook Stove Consumers

Broad Segments

Socio-economic and demographic

profile of the household

Energy Choices and Uses

Energy cost and expenditure

52

Broad Segments

• The combination of ranked market drivers can be grouped into similar broad segments that exhibit similar characteristics. These broad segments are grouped into the following

Socio-economic and demographic profile of the household

Gender, age, head of household, decision making regarding household energy issues, home ownership, family size, highest level of education reached in the household, employment

Energy Choices and Uses Energy sources, energy choice determinants in cooking, problems associated with the use of energy, fuel availability

Energy cost and expenditure Level of income, cost/unit for each of the energy consumed.


53

Segment 1 – Low income householdsIncome and Household Characteristics• Households living below the urban poverty line Kshs. 2913 per month• Households living below the rural poverty line Kshs. 1562 per month• Rural households in extreme poverty below Kshs. 988• Households predominantly found in rural areas• Household usually living in temporary structure and there is no ownership of the dwelling unit. • No disposable income and generally do not have money for upfront investment• Luxury goods usually purchased through savings or other subsidized schemesGender• Women primarily users of cook stoves• Men/women makes financial decisions on fuel choice • Men/women makes financial decisions on household appliances Education • Level of education of head of household – up to primary• Awareness of the benefits of improved cook stoves minimal.Fuel Choice and Affordability• Main fuel used is fuel wood and other biomass such as dung, and agricultural wastes• Fuel usually collected for free.Cook Stoves• Usually use traditional 3 stone fire and the cheapest type of stove Jiko Kisasa (one pot)

54

Segment 2 – Low/Middle income households Income and Household Characteristics• Households living above the urban poverty line Kshs. 2913 per month• Households living below the rural poverty line Kshs. 1562 per month• Ideal income level between Kshs. 6120 and Kshs. 9319• Household usually living in temporary structures. • Predominantly found in poor urban areas• Limited disposable income, products need to be subsidized through financial schemes• Moderate willingness to pay for technology without subsidies• Luxury goods usually purchased through savings or other subsidized schemesGender• Women primarily users of cook stoves• Men/women makes financial decisions on fuel choice • Men/women makes financial decisions on household appliances Education• Level of education of head of household – primary• Moderate awareness of the benefits of improved cook stoves.Fuel Choice and Affordability• Typical fuel choices are firewood, charcoal and agricultural residues• Access to electricity in urban households but affordability prohibits adoption rate.• Poor urban households may use urban residues as fuel; such as cardboard residues from building construction.Cook Stoves• Uses three stone fire, cheapest type of stove Jiko Kisasa (one pot) and kerosene wick stoves

55

Segment 3 – Middle income householdsIncome and Household Characteristics• Income levels between Kshs. 9320 and Kshs. 13015 per month• Found in both rural and urban areas• Households usually living in temporary and rented dwelling units• Moderate disposable incomeGender• Women primarily users of cook stoves• Men/women makes financial decisions on fuel choice • Men/women makes financial decisions on household appliances Education• Level of education of head of household– primary and secondary• Moderate awareness of the benefits of improved cook stoves.• Substantial awareness of stoves using cleaner fuel like LPG and electricityFuel Choice and Affordability• Kerosene stoves in urban areas used to boil water or tea and charcoal used for cooking (for better taste). • Usually purchase fuel for cooking and lightingCook stoves• Moderate willingness to pay for LPG and Electric Stoves• Typically uses kerosene wick and charcoal stoves.

56

Segment 4 – Middle/High income householdsIncome and Household Characteristics• Income levels between Kshs. 13016 and Kshs. 20408 per month• Household usually living in rented (permanent structures) and owned dwelling units• Found in both rural and urban areas• Exceptional awareness of improved cook stoves• Luxury items usually purchased through savings• Income sources are usually fragmented in rural districtsGender• Women primarily users of cook stoves• Men/women makes financial decisions on fuel choice • Men/women makes financial decisions on household appliances Education• Level of education of head of household – primary; secondary; some tertiary• Moderate awareness of the benefits of improved cook stoves.Fuel Choice and Affordability• Typically uses firewood, charcoal, kerosene and/or LPG stoves. • Easier access to fuels• Fuels in both urban and rural areas are purchased. • Higher willingness to pay for LPG and electric stoves in urban areas than in rural areas; may be hindered due to high taxation

on LPG and constant shifts in gas and tariff prices.• Moderate disposable income

57

Segment 5 - High income householdsIncome and Household Characteristics• Income levels above Kshs. 20409 per month• Predominantly found in rural/urban regions• Household usually living in rented and owned dwelling units. • Luxury items usually purchased through savingsGender• Women primarily users of cook stoves• Men/women makes financial decisions on fuel choice • Men/women makes financial decisions on household appliances Education• Level of education of head of household – primary, secondary and tertiary• Exceptional awareness of improved cook stoves• Moderate awareness of the benefits of improved cook stoves.Fuel Choice and Affordability• Households predominantly use firewood, charcoal, kerosene and LPG stoves.• Higher willingness to pay for LPG and electric stoves in urban areas than in rural areas; may be

hindered due to shifting taxation on LPG and constant shifts in gas and tariff prices.

58

Segment Matrix Segments ranked 0 to 5 with 0 being lowest score and 5 the highest

Age 0 - 14 15-24 25 - 54 55 - 64 65 and over 1 4 5 3 1

Family Size Nairobi Central Coastal Eastern North Eastern Nyanza Rift Valley Western2 4 4 5 5 5 4 5

Fuel type (used in cooking) Nairobi Central Coast Eastern North Eastern Nyanza Rift Valley WesternFirewood 1 5 4 4 4 4 3 5Charcoal 4 4 4 2 2 2 3 3Kerosene 4 2 3 2 1 2 1 1LPG 4 1 1 1 0 0 0 0Electricity 1 0 0 0 0 0 0 0

Nairobi Central Coastal Eastern North Eastern Nyanza Rift Valley WesternHome Ownership 4 4 4 3 2 3 3 4

Segment MatrixThe segment matrix ranks market drivers by region. Market drivers are ranked 0 to 5 with 0 being the least likely option to increase cook stove adoption and 5 the most likely.

Eastern and North Eastern Regions are high risk security areas.

59

Gender Male Female 4 5

Head of household - Female Nairobi Central Coastal Eastern

North Eastern Nyanza Rift Valley Western

2 4 4 3 4 4 3 4

Employment Income

Quintile 1Income

Quintile 2Income

Quintile 3Income

Quintile 4Income

Quintile 5

0 3 5 5 5

Fuel Access Nairobi Central Coastal EasternUrban Rural Urban Rural Urban Rural Urban Rural

Fuel wood 1 3 2 5 4 4 3 3Charcoal 4 4 5 3 4 3 2 3Kerosene 4 3 3 3 3 3 4 4LPG 4 3 3 2 3 2 2 2Electricity 3 3 3 2 3 2 2 2

Fuel Access North Eastern Nyanza Rift Valley WesternUrban Rural Urban Rural Urban Rural Urban Rural

Fuel wood 3 3 2 2 3 3 3 4Charcoal 2 3 3 2 3 2 3 3Kerosene 4 4 4 3 3 3 4 4LPG 2 2 2 2 1 1 3 3

Segment Matrix

60

Fuel Cost (Affordability) Nairobi Central Coastal Eastern(Appendix III) Urban Rural Urban Rural Urban Rural Urban RuralFuel wood 4* 3 4 4 4 4 3 2Charcoal 4 4 5 4 4 4 3 2Kerosene 4 3 4 4 4 4 3 3LPG 4 3 3 2 3 2 2 2Electricity 4 2 3 2 3 2 2 1

Fuel Cost (Affordability) North Eastern Nyanza Rift Valley Western(Appendix III) Urban Rural Urban Rural Urban Rural Urban RuralFuel wood 3 2 3 2 3 3 4 4Charcoal 3 2 3 2 3 3 3 3Kerosene 3 3 3 3 3 3 3 3LPG 2 2 2 2 2 1 3 2Electricity 2 1 2 1 2 1 2 2

Nairobi Central Coast Eastern North Eastern Nyanza Rift Valley Western

Level of Education (up to secondary - females) 3 5 4 4 3 3 4 4

Willingness to pay Urban Rural

Firewood 1 4 Charcoal 4 3 Kerosene 3 4 LPG 4 3 Electricity 4 2

Segment Matrix

61

Segments• Broad categories of factors that influenced improved cook stove adoption were identified

and several targeted segments were discovered within each category. The targeted segments are based on a collation of drivers from the segment matrix. All scores ranked 4-5 are preferable indicators for a character profile. These character profiles represent the ideal target market for large scale improved cook stove adoption; based on a market profitability approach.

• 12 variables were considered as a determinant of adoption. These were age, gender, head of household, home ownership, family size, geographic location, fuel used in cooking, employment (income quintiles), fuel availability, education level and willingness to pay.

• Improved cook stove adoption and fuel choices are significantly influenced by socio-economic status and demographic profile of households, energy choices and uses, energy cost and expenditure.

• Using the segment matrix, we based the top characteristics on variables that were significant in a review of fuel and improved cook stove adoption. These were age, employment (level of income), gender, level of education, head of the household, household size and geographic location.

62

Segments – Top 3

• Demographic– – Working women; – Women who are the head of the household; age 25 – 54; – Education up to secondary level; – Firewood and Charcoal stove users.

• Economic – – Low income bracket - Kshs 2913 to Kshs 9319 per month; for subsidized stoves– Middle income - bracket Kshs 9320 to Kshs 13015 per month; – High Income - Kshs. 13016 to Kshs. 20408 per month; – High Income - > Kshs. 20409;

• Regional– – Central (Rural household size > 3, Urban household size ~4); – Western (Rural household size ~4);– Coastal (Urban household size ~4).

For upfront purchase

63

Segments - Character ProfilesSegments Education Age Gender /

Head of household

Formal/ Informal

Employment

Income Quintile / month

Household Size

Rural/Urban

Main stove type used in

cooking

District Region Households for adoption

1

Up to Secondary (Primary,

Secondary)25-54

Female Both LowKshs 2913

to Kshs 9319

>3 Rural Fuel wood Murang’a Central

200,000

Female Both High

Kshs. 13016 to

Kshs. 20408;

>Kshs. 20409;

~3 Urban Charcoal Nyeri Central

2


Secondary)

25-54

Female Both MiddleKshs 9320

to Kshs 13015

~4 Rural Fuel wood Kakamega Western 185,000

3


Secondary)25-54

Female Both MiddleKshs 9320

to Kshs 13015

~4 Urban Charcoal Kilifi Coastal

135,000Female Both High

Kshs. 13016 to

Kshs. 20408

>Kshs. 20409;

~4 Rural Fuel Wood Kilifi Coastal

64

References• Africa Infrastructure Country Diagnostic Country Report (2010): Kenya’s Infrastructure, A Continental

Perspective• CIA world fact book. Kenya, https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html [Last

Accessed: May 2013]• Energy Environment and Development Network for Africa (2008)• GTZ (2009), Survey on Impacts of the Stove Project in Transmara, Western and Central Cluster of Kenya• Jeuland. A.M., Pattanayak. S., (2012): Benefits and Costs of Improved Cook stoves: Assessing the Implications of

Variability in Health, Forest and Climate Impacts• Kenya National Bureau of Statistics (2007): Basic Report on Well Being• Kenya National Bureau of Statistics (2005/2006): Kenya Integrated Household Budget Survey• Kenya Institute for Public Policy Research and Analysis (2010): A comprehensive study and analysis on Energy

consumption patterns in Kenya• Nyaga. R.K., (2010): Earnings and Employment Sector Choice in Kenya• Omolo. J., (2012): Regional Disparities in Employment and Human Development in Kenya Vol. 1 Issue 1. (pp. 1-

17)• SCODE (2010): Gender, Improved Cook Stoves and Development in Kenya+• Slaski . X and Thurber, M., (2009): Cookstoves and Obstacles to Technology Adoption by the Poor• The East African Community (EAC) Strategy on Scaling-up Access to Modern Energy Services (2008)• Worldbank (2011): The role of liquefied petroleum gas in reducing energy poverty

65

Market Segmentation Study – Survey Analysis

66

Overview• Market Size• Household Purchasing Power• Fuels and Cook Stoves Being Used / Purchased by Segments

– Primary Fuel Used in Cooking– Fuel Collection– Cook Stoves Being Used by Customers– Primary Cooking Devices

• Actions Taken to Purchase ICS / Ongoing Fuel Costs– Current ICS use – Savings and Purchase– Money Spent on Cooking Fuel per Month

• Willingness to Purchase– Reasons for wanting to purchase a new ICS– Reasons for not yet purchasing a new ICS– Willingness to Pay

67

Overview

• Access to Luxury Devices, Motivation and Micro-finance– Interest in Purchasing Luxury Devices– Motivation and Microfinance– Purchasing Schemes

• Active Fuel and Cook Stove Stakeholders in Each Segment• Fuel and Cook stove Value Chains / Distribution Channels– Charcoal Value Chain– Fuel Wood Value Chain– LPG Value Chain– Value Chain – Improved Cook Stoves– Value Chain – Energy Related Products – Current Specs of Market Products

68

AcronymsAGOL Africa Gas and Oil Limited

CBO Community Based Organization

ICS Improved Cook Stoves

KUSCCO Kenyan Union of Savings and Credit Co-operatives

KRC Kenya Railway Corporation

LPG Liquefied Petroleum Gas

MOU Memorandum of Understanding

MF Microfinance

MFI Microfinance Institution

NGO Non Governmental Organization

SACCO Saving and Credit Co-operative Society

69

Market SizeSegments

Region Sample District Female education – up to secondary level

Rural / Urban Stove Type Income

Central Region Murang’a 67,574 Rural Fuel wood Low income

Central Region Nyeri 61,194 Urban Charcoal High Income

Western Region Kakamega 83,461 Rural Firewood Middle Income

Coastal Region Kilifi

15,077

Rural Firewood High Income

Coastal Region Kilifi Urban Charcoal Middle Income

n = 100 unless otherwise stated

70

Market SizeSample district Region Female head of

householdHouseholds for adoption

Sample Size (n)Confidence Level – 95%Confidence Interval - +/-10%

Murang’a

Central 0.3 200,000

100

Nyeri 100

KakamegaWestern 0.2 185,000

100

Kilifi

Coastal 0.2 135,000

100

Kilifi 100

n = 100 unless otherwise stated

71

Households – Purchasing Power Average household size 4.5Household head PercentMale 25%Female 75%

None; 5%

Primary; 36%Secondary;

55%

Tertiary; 4%Education of household head

76.47%

22.35%

1.18%

Factors taken into before purchasing a product

How much item costs

Savings to purchase them

Recommendation from community leader

Other people in the vil-lage using product

Female HH head belonging to women's group n = 60 Yes 88%No 12%

General women's group in areaKopep Women’s groupGaba Women’s GroupKagumoini ChamaUwezo Self help GroupRurie GroupGabo and Gaitho GroupRiato Women’s GroupFaulu KenyaKenya Women ZediKagumoini

Segment 1a - Central region- rural fuel wood cook stove users (Murang’a) – Low income

72

Households – Purchasing Power

Segment 1b – Central region- Urban charcoal cook stove users (Nyeri) – High income

How much the item costs

76%

Savings to purchase the

item28%

Factors taken before purchasing a product

1%

5%

93%

1%

Education of household head

None

Primary

Secondary

University

Household size 4.5Household head PercentMale 55%Female 45%

Female HH head belong to women's group n = 45 Yes 35%No 65%

General women's group in area Metumi Women Group Kenya Women Finance trustSkuta Women group Mungano Women GroupMerry go round Mwendwa GroupWendani Group Young ladies Kangaruu W Group Kingongo Merry Go roundSuper Sales Women S.H Ngumbacho GroupGithima Women Group Pamoja Women GroupNganciarithi Women Group Women FinancePamoja Women Group

73


Segment 2 –Western Region – Rural fuel wood cook stove users (Kakamega) – Middle Income

Average household size 5.5Household head PercentMale 40%Female 60%

Female HH head in women's group n = 40

Yes 44%No 56%

General women's group in area

Faith Women Group Equiry GroupWomen Enterprise Ilesi Potery Women GroupHope group Machina TurnsCabda Chajikoni Women GroupLuamba Women's group Basanji Women GroupPamoja Tufaulu Ilala Women GroupECLOF Tupendane Women GroupMerry Go Round Sitochi women groupLeso Group Muyanzi Women GroupIsuda Women Group Faith Women Group

Primary19%

Secondary80%

University1%



97%

Savings to purchase the item3%

Factors taken into account before purchasing a product

74


Segment 3a Coastal – Urban charcoal cook stove users (Kilifi)– High Income


96%

Savings to purchase the item4%


None3%

Primary25%

Secondary65%

Tertiary7%


Average Household size 6Household head Male 26%Female 74%

Female HH head belong to women's group n = 74

Yes 14%No 86%

General Women's GroupsFaraja Women groupTuwezeshe St Matia MulumbaNkonkanyaMerry go round

75


Segment 3b Coastal – Urban charcoal cook stove users (Kilifi)– Middle Income

None8%

Primary29%

Secondary52%

Tertiary11%



71%

Savings to purchase the

item27%

Recommendation from community leader

2%


Average household size 4.7Household head Male 26%Female 74%

Female HH head in women's group n = 74

Yes 40%No 60%

General Women's Group in areaPeacock Merry Go roundKichuku women's group KCBNkonkanya MaremboW.GBig family KWFTSisters with Vision TuunganeTuungane MICROFINANCE GROUPMaendeleo SELF HELP GROUPMudzini MABROCK WOMEN GROUPPeleleza KEDET WOMEN GROUP

76

Purchasing Power – Level of Income

Income Bracket




Segment 3a Coastal– Rural fuel wood cook stove users – High Income


600 - 1199 5.10% 1% 0.00% 0% 0%

1200 - 2499 13.27% 0% 2.02% 1% 0%

2500 - 3999 26.53% 0% 4.04% 13% 5%

4000-6499 26.53% 3% 3.03% 2% 5%

6500-8999 10.20% 12% 27.27% 3% 13%

9000-11999 7.14% 11% 23.23% 5% 32%

12000-14999 2.04% 19% 20.20% 20% 30%

15000-19999 5.10% 27% 7.07% 30% 7%

20000-24999 1.02% 15% 8.08% 22% 4%

>25000 3.06% 12% 5.05% 4% 4%

Highest income earners. Income in Kilifi is highly fragmented. Many respondents indicated their income were from various sources such as farming, fuel selling and trading

77

Household Occupation and Main Source of Income

Farm

ing

Small S

cale B

usiness

Laborer

Unemploye

d

Manager

Office Worke

r

Other Secre

tary

0%10%20%30%40%50%60%70%80%90%


Head of household occupation Main source of income

Head

of h

ouse

hold

occ

upati

on (%

)

Total Non agricultural activity - 95%

Farm

ing

Small S

cale B

usiness

Laborer

Unemploye

dOther

Office Worke

r0%

10%20%30%40%50%60%70%80%90%



Head

of h

ouse

hold

occ

upati

on (%

)

Total Non agricultural activity – 23%

78


Farming Small Scale Business Laborer Unemployed0%5%

10%15%20%25%30%35%40%45%50%



Total non-agricultural activity – 53%

79


Farm

er

Small B

usiness

Owner

Laborer

Other-

Hotel W

orker

Manager

Office Worke

r

Unemploye

d0%

10%

20%

30%

40%

50%

60%

70%

Segment 3a Coastal – Rural charcoal cook stove users (Kilifi)– High Income

Occupation Main source of Income

Head

of h

ouse

hold

occ

upati

on (%

)

Farm

er

Small B

usiness

Owner

Laborer

Manager

Office Worke

r

Other - teach

er0%

10%20%30%40%50%60%


Occupation Main source of income

Head

of h

ouse

hold

occ

upati

on

Total Non agricultural activity 82%

Total Non agricultural activity 98%

80

Summary• We initially excluded households that were not headed by females. This was to stay true to the original

segments found. Due to time constraints we had to include households that were also headed by males.• Secondary education for all households was over 50%. Kakamega, Nyeri and Rural Kilifi had the highest

levels of secondary education. • Factors taken into account before purchasing an item were generally; savings to purchase the item; the

cost of the item and whether or not it was recommended by a family/friend.• In all segments where there was a male head of household, they indicated that their wife was in charge

of controlling the finances even though the men were the bread winners. There was a distinct level in the division of household roles. The male heads indicated that even though they were the bread winners; wives were the ones who made everyday financial decisions on what is needed in the home or what needs putting money into such as food, clothing, fuel and school fees. Men on the other hand, would make financial decisions on more intensive things like buying land or building/extending the home.

• Polygamous households indicated that the first wife was generally in charge of making financial decisions.

• It was difficult to quantify levels of income. All respondents indicated fragmented and informal sources of income. This was particularly high in Kilifi rural and urban areas. Some of these fragmented sources of income included selling fuel and trading farming produce.

81

Fuels and Cook Stoves being Used / Purchased by Segments

82

Primary Fuel Used in Cooking

0%

20%

40%

60%

80%

100%

85%

2%

85%71%

5%

8%

96%

11%22%

76%

4% 1% 2% 4%13%

3% 1% 2% 3% 6%

KeroseneLPGCharcoalFuel wood

83

Fuel Collection

0%

20%

40%

60%

80%

100%

52.00%

98.00%

45.00%29.00%

97.00%

32.00%

2.00%

48.00%

47.00%

1.00%16.00% 7.00%24.00%

2.00%

Both Collect for Free Purchase

84

Fuel CollectionLocation Average Time to

collect fuel wood / mins

Average Distance to collect fuel wood

Means on transport General sources of fuel


30-90 100 m to 1 km On foot Free from nearby woodlandsLocal village vendors


30-60 100-500m On foot Convenience StoreMarket VendorRoadside vendor


0-30 100m-500m On foot Free from nearby woodlandsLocal village vendorsRoad side vendors

85

Fuel CollectionLocation Average Time to

collect fuel wood / mins

Average Distance to collect fuel wood

Means on transport General sources of fuel

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi) – High Income.

30-90 500m-1km On foot Free from nearby woodlands/grasslandsRoad side vendors

Segment 3 Coastal – Urban charcoal cook stove users (Kilifi)– Middle Income / Charcoal fuel

0-30 100m-500m On foot/bicycle Convenience StoreMarket Vendor

Segment 3a Coastal – Urban charcoal cook stove users (Kilifi)– Middle Income / LPG Fuel

0-30 1m-3km Car – Respondents indicated long distances required vehicle transport

Bicycle

Convenience storePetrol station

Segment 3b Coastal – Urban charcoal cook stove users (Kilifi)– Middle Income / Kerosene Fuel

0-30 100m – 1km On foot/bicycle Convenience storeRoadside vendorPetrol station

86

Percentage Distribution of Cooking Devices Used in Households

Segment 1a - Central region- rural fuel wood cook stove

users (Murang’a) – Low income

Segment 1b – Central region- Urban

charcoal cook stove users (Nyeri) – High

income

Segment 2 –Western Region – Rural fuel

wood cook stove users (Kakamega) –

Middle Income

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi) –

High Income.

Segment 3b Coastal – Urban charcoal cook stove users (Kilifi)–

Middle Income Three stone fire 25% 8% 37% 34% 10%Firewood Jiko Kisasa – one pot

10% - 4% 1% 1%Firewood Jiko Kisasa - two pot

1% - 2% 8% -Rocket Mud Stove - one pot

16 % - - - -Rocket Mud Stove - two pots

11% 1% 1 % - -Charcoal stove 7% 50% 21% 20% 57%Upesi Stove 5% 2% 11% 6% -Other ICS 8% 5% 11% -Kerosene wick 14% 26% 14% 12% 16%Kerosene pressure stove - 1% - 4% -LPG stove 3% 12% 4% 4% 15%Electric stove – 2 ring - - 1% - 1%Total 100% 100% 100% 100% 100%

These figures represent cooking devices found in households, they do not reflect primary fuel used for cooking.

87

Percentage of Multiple Stoves Found in Households

Segment 1a - Central region- rural fuel wood

cook stove users (Murang’a) – Low

incomen=47

Segment 1b – Central region- Urban charcoal

cook stove users (Nyeri) – High

incomen = 66

Segment 2 –Western Region – Rural fuel wood

cook stove users (Kakamega) – Middle

Incomen = 70

Segment 3a Coastal– Rural fuel wood cook

stove users (Kilifi) – High Income.

users n = 56

Segment 3 Coastal – Urban charcoal cook stove users (Kilifi)–

Middle Income users n=60

Multiple Stove Use 47% 66% 70% 56% 61%

Reasons for multiple stove use To cook bigger meals 6% 18% 5.71% 17.24% 3.33%To save time in cooking 33% 77% 91.43% 10.34% 33.33%Fuel is cheaper for some stoves 59% 5% 2.86% 68.97% 61.67%Food tastes better 2% 0.00% 0.00% 3.45% 1.67%Less accidents / burns 0.00% 0.00% 0.00% 0.00% 0.00%

Main reasons for multiple stove use.

88

Stove Use – Primary Cooking Device

Stove typePrimary Stove Use

Average purchasing price of stove (kshs)

Three stone fire 62% FreeFirewood Jiko Kisasa - two pot 2% 250-500Rocket Mud Stove - one pot 7% 250-350 Rocket Mud Stove - two pots 2% 300-400Charcoal stove 9% 250-500Other – ICS 10% 500-1000kerosene wick 3% 350-750LPG stove 5% 3500-7000



Three stone fire 1% FreeRocket Mud Stove - two pots 1% 300Charcoal stove 96% 500-1000kerosene wick 1% 300-700

LPG stove 1% 3500-7000





Three stone fire 44% FreeFirewood jiko Kisasa - one pot 5% 250-500Other - ICS 9% 250-1000Rocket mud Stove - two pot 2% 250-500Charcoal stove 15% 500-1000Upesi Stove 20% 100-250Kerosene wick stove 2 % 500-1000LPG stove 3% 3500-7000


89

Stove Use – Primary Cooking Device



Three stone fire 40% FreeFirewood Jiko Kisasa - one pot 4% 250-500Other ICS

23% 250-1000Charcoal stove26% 500-1000kerosene wick 3% 350-700kerosene pressure stove1% 250-600LPG stove 3% 4000-6000

Stove type

Primary Stove Use


Three stone fire 5% FreeCharcoal stove 60% 500-1000kerosene wick 20% 350-750LPG stove 15% 4000-7000

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi) – High Income.


90

Stove Use and Fuel CombinationStove General reasons for use Source of stove / General responses

Three stone fire Fuel more readily availableFood tastes better (when compared against kerosene stove)Cooking large meals are easier

Made by householders

Firewood Jiko Kisasa – one pot

Less smoke in the home if cooking indoors during rainGood for cooking smaller meals.Many respondents indicated that they needed bigger pot plates to cook some meals to they revert to using three stone fires.Good fuel wood savings

Householders make themselves or pay someone to make it for them

Firewood Jiko Kisasa - two pot

Easy to useGood fuel wood savings


Rocket Mud Stove - one pot

Faster cookingEasy to useGood fuel wood savings


Rocket Mud Stove - two pots

Less smoke in the homeFaster cooking


Charcoal stove Charcoal more readily availableFuel is cheap

Purchased from NGO Subsidized vendor or road side vendor

91

Stove Use and Fuel Combination

Stove / type fuel General reasons for use Source of stove

Upesi Stove / fuel wood Stove is easy to useFuel is easy to access / buySaves money and frequent trips to collect/purchase fuel

Purchased from NGO subsidized vendor or householders pay someone to make it for them

Kerosene wick Fuel is cheap to purchase if wood / charcoal runs out – Respondents also indicated that they do not like to use kerosene to cook because they do not like the taste it produces in foods

Purchased from Convenience Store or Local village vendor

Kerosene pressure stove Fuel is cheap to purchase if wood / charcoal runs out Purchased from Convenience Store or Local village vendor

LPG stove Many respondents indicated that LPG was expensive to purchase on a continuous basisFuel lasts longer but only used sparingly

Purchased from Convenience Store or Local village vendor

Electric stove – 2 ring Stove is easy to use Purchased from Convenience Store or Local village vendor

92

Stove Use• A survey on the impacts of stove projects in Transmara, Western and

Central Kenya conducted by GTZ in 2009, indicated that three stone fires had lost it’s predominant position in the Central region, however, in Murang’a district, this is not the case.

• Multiple stove use were common in all households surveyed, however, respondents indicated that some stoves are used only on occasion. Three stone fires were still predominantly used in rural areas; respondents indicated that they didn’t like some of the models being sold in the ICS market. They also indicated that some models were not fitted to their cooking needs, specifically in Western Kenya (Kakamega). For example. respondents indicated that their ICS was not large enough to cook their main food, Ugali, so they reverted to using three stone fires.

93

Actions Taken to Purchase ICS / Ongoing Fuel Costs

94

Current ICS use – Savings and Purchase

The majority of respondents did not want to disclose who they borrowed money from to purchase ICS

0%10%20%30%40%50%60%70%80%90%

100%

8%30%

12%

45%

15%20%

40%54%

50%

70%

72%

30% 44%

5% 15%

Did not answerBought stoves through own savingsBorrowed money to purchase/ install ICS

95

Money spent on cooking fuel per month

<200 Ksh

s

201 - 500 Ksh

s

500-799 Kshs

800-1199 Kshs

1200-1599 Kshs

1600-1999 Kshs

2000 - 2499 Ksh

s

2500 - 2999 Ksh

s

3000 - 3499 Ksh

s

3500 - 4000 Ksh

s

>4000 Ksh

s0%

5%

10%

15%

20%

25%

30%

Segment 1a - Central Region: Rural fuel wood stove users (Murang’a)

Money spent on fuel / month (Kshs)

Resp

onde

nts (

%)

<200 Ksh

s

201 - 500 Ksh

s

500-799 Kshs

800-1199 Kshs

1200-1599 Kshs

1600-1999 Kshs

2000- 2499 Ksh

s

2500 - 2999 Ksh

s

3000 - 3499 Ksh

s

3500 - 4000 Ksh

s

>4000 Ksh

s0%

5%

10%

15%

20%

25%

30%

35%

Segment 1b - Central Region: Urban charcoal stove users (Nyeri)

Money spent on cooking fuel / month (Kshs)

Resp

onde

nts (

%)

96

Money spent of cooking fuel per month

<200 Kshs

201 - 500 Kshs

500-799 Kshs

800-1199 Kshs

1200-1599 Kshs

1600-1999 Kshs

2000 - 2499 Kshs

2500 - 2999 Kshs

3000 - 3499 Kshs

3500 - 4000 Kshs

>4000 Kshs

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%


Cost of cooking fuel /month (Kshs)

Resp

onde

nts (

%)

97

Money spent of cooking fuel per month

<200 Ksh

s

201 - 500 Ksh

s

500-799 Kshs

800-1199 Kshs

1200-1599 Kshs

1600-1999 Kshs

2000 - 2499 Ksh

s

2500 - 2999 Ksh

s

3000 - 3499 Ksh

s

3500 - 4000 Ksh

s

>4000 Ksh

s0%

5%

10%

15%

20%

25%

Segment 3b Coastal– Urban Charcoal cook stove users (Kilifi) – Middle Income

Money spent on cooking fuel / month (Kshs)

Resp

onde

nts (

%)

<200 Ksh

s

201 - 500 Ksh

s

500-799 Kshs

800-1199 Kshs

1200-1599 Kshs

1600-1999 Kshs

2000 - 2499 Ksh

s

2500 - 2999 Ksh

s

3000 - 3499 Ksh

s

3500 - 4000 Ksh

s

>4000 Ksh

s0%5%

10%15%20%25%30%35%40%

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi) – High Income

Money spent on fuel / month (Kshs)

Resp

onde

nts (

%)

98

Willingness to Purchase

99

Willingness to Purchase New ICSLocation Willingness to pay


98%


93%


94%

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi)– High Income

96%


99%

Even though the majority of households were using more than one cooking device, there was a strong willingness to pay for even more ICS technologies in all segments. Upon further investigation we found that when households were offered an opportunity to purchase a new ICS that could further lower the use of any fuel, they would wanted to purchase the ICS on the strength of the perceived benefit of using far less firewood/fuel.

100

Reasons for Wanting to Purchase New ICS

0%

20%

40%

60%

80%

100%

120%

5% 2% 1%35%

1%5% 18% 28%

1%

14%30%

37%37% 34%

2%

60%43% 34% 30%

83%

To save money spent on fuelTo reduce time collecting fuelIt is an advanced technologyTo reduce smoke in the home

In Kakamega, respondents indicated that their ICS was not large enough to cook their main food, Ugali, so they reverted to using three stone fires.

101

Reasons for not yet Purchasing New ICS

0%

20%

40%

60%

80%

100%

120%

37%7% 7%

29%8%

4%

29% 29%14% 54%

7% 25% 12%28%

13%9%

39% 52%20% 25%

0.43

0.09

Other ICS unavailable in the areaDo not like the models being sold in the areaDo not have the upfront moneyICS is too expensiveCurrently saving to purchase

102

ICS purchase – Willingness to Pay

Willing to pay upfront cost

33%

Willing to pay monthly in-stallments

67%

Purchasing power

0-50 50-100 100-150 150-200 200-250 >2500%5%

10%15%20%25%30%35%40%45%

Willingness to pay per month (Kshs)

Resp

onde

nts (

%)


103


Willing to pay up

font cost59%


41%

Purchasing power

0-50 50-100 100-150 150-200 200-250 >2500%5%

10%15%20%25%30%35%40%

Willingness to pay per month (Kshs)

Resp

onde

nts (

%)


104


Willing to pay upfront

cost64%


36%

Purchasing power

0-50 50-100 100-150 150-200 200-250 >2500%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Willingness to pay / month (Kshs)

Resp

onde

nts (

%)


105


Willing to pay upfront cost

49%

Willing to pay

monthly install-ments51%

Purchasing power

0-50 50-100 100-150 150-200 200-250 >2500%5%

10%15%20%25%30%35%40%45%50%

Willingness to pay / month (Kshs)

Resp

onde

nts (

%)

Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi)– High Income

106


0-50 50-100 100-150 150-200 200-250 >2500%

10%

20%

30%

40%

50%

60%

70%

Willing to pay / month (Kshs)

Repo

nden

ts (%

)


34%

Willing to pay up-

front cost66%

Purchasing power


107

Access to Luxury Devices, Motivation and Micro-finance

108

Access to devices

0%10%20%30%40%50%60%70%80%90%

100%

Mobile Phones Television Radio Desktop Computers Laptops

109

Interest in purchasing new products

Devices Segment 1a - Central region- rural fuel wood cook stove users (Murang’a) – Low income



Interested Not interested

Did not say

Interested Notinterested

Did not say


Did not say

Mobile Phones

5% 88% 7% 5% 80% 15% 6% 94% -

Television 39% 48% 13% 20% 50% 30% 20% 80% -

Radio 10% 80% 10% 4% 90% 6% 15% 84% 1%

Desktop Computers

5% 75% 20% 10% 80% 10% 7% 80% -

Laptops 2% 28% 70% 5% 10% 85% 8% 92%

110

Interest in purchasing new products

Devices Segment 3a Coastal– Rural fuel wood cook stove users (Kilifi)– High Income



Did not say Interested Not interested

Did not say

Mobile Phones 35% 30% 35% 4% 96% -

Television 15% 60% 25% 23% 77% -

Radio 3% 97% - 8% 90% 2%

Desktop Computers

17% 83% - 5% 95% -

Laptops 4% 96% - 25% 75% -

111

Motivation and Microfinance• Cooking on improved cook stoves comprises a variety of cultural and lifestyle changes. Some of these

changes include fuel switching, frequency of wood collection (an activity with a strong social component) as well as general cooking (an activity heavily influenced by tradition).

• Changes in lifestyle may bring significant benefits such as the ability to replace wood gathering with productive economic activities; but they are not undertaken lightly.

• Products like improved cook stoves that are more complicated than traditional technologies may require training and ongoing correct use to reap their benefits.

• What has made rural cook stove programs particularly difficult is that they are expensive, imply a significant change in user habits, and, are usually not highly valued by potential users at the offset. For developers to fully succeed in the cook stove market, they will need to be creative in addressing all three of these obstacles, in addition to the difficult challenges of developing cost-effective supply chains to remote rural areas.

• Most important of all are efforts to create compelling perceived value for consumers which goes beyond outsiders’ perceptions of the value that should already exist, such as for health.

• There is a significant lifestyle change presented by a change in cooking methods therefore deep motivation on the part of consumers is required. Skilful design can be a key part of making the stoves as easy to use, robust, and highly valued as possible.

• The extent to which project developers can profitably provide products to those on lower incomes will then depend on how creatively they can apply tools of financing where possible and make subsidies available where necessary through partnerships with governments and NGOs.

Slaski.X., Thurber. M., (2009), FSD 2009

112

Motivation and Microfinance

• In urban areas, where fuel is often purchased, users are motivated by improved cook stoves that saves money.

• In rural areas where fuel is scarce people similarly see the value of fuel-saving stoves. Motivated customers will overcome many obstacles to purchase a product, but real barriers can still remain, the most important of which is affordability.

• For most low-income consumers (Income Quintile 1 and 2), stoves are still not affordable and projects may have to adopt a microfinance scheme.

Slaski.X., Thurber. M., (2009), FSD 2009

113

Microfinance• 33% percent of Kenya has no access of micro financing schemes or financial services, whilst there is a strong business

opportunity to introduce the new technologies under a micro-finance scheme to low-income households and businesses in Kenya, there are a small percentage of people that are unwilling to take out loans for products. The reason was not related to the actual products but purely not wishing to take on any debt.

• Over 40% of Kenyans are unaware of how microfinance works. Education programs, targeting low income families on Income Quintile 1 and 2, especially in rural areas of Nyanza, Eastern, and North Eastern Provinces, can significantly increase the uptake of microfinance projects in Kenya.

• co2balance has conducted household, business and community enterprise surveys in three different locations across Kenya (Kisumu, Aberdares and the Coastal Region). The objective of the surveys was to determine the potential market for clean technologies distributed through a micro-finance scheme in Kenya as a whole.

• The surveys revealed a large potential market for solar lamps, small solar panels, solar light and mobile charging technologies, efficient cook stoves and water filters. Results highlighted a variance in affordability of monthly loan payments, up to a maximum of £3.70 ($5.60). The surveys showed that households are willing and able to pay the highest monthly loan payments for the solar lamps, and the combined lighting and charging devices, suggesting that these products are seen as having the most benefits.

• There is strong interest from community enterprises already experienced with micro-finance to lead small distribution programmes, and MPESA mobile money transfers have been identified as a particularly suitable means to collect payments.

114

Project technologies under micro finance schemes

Project Technologies Market Size / households

Target loan repayment / month

Solar Lamps (one solar lamp)

334,944 £3.70 ($5.60)

Solar Panel 320,988 £0.75-1.10 ($1.10-1.70)

Combined Light and Phone Charger

327,966 £0.75-1.50 ($1.10-2.20).

Efficient Cook Stove – Fuel wood*

- £0.40 ($0.60)

Water Filter 282,609 £0.40 ($0.60)

*In order for the distribution of cook stoves to be viable, the monthly loan payment would have to be higher than the £0.40 ($0.60) households identified as affordable. Alternatively, the cost would have to be supported through the use of carbon finance.

115

Purchasing Schemes – “Merry go round”

• Rural respondents willing to purchase products through financing schemes indicated that they usually do so through women groups.

• The majority of women groups are informal and operate a “merry go round” savings scheme. This works by members making weekly/monthly contributions which are pooled for members to take loans from.

• Alternatively smaller groups pool money and the lump sum is given to a single member of the group each month. The small amounts they contribute when pooled and given to a single member, makes the member have enough money to finance large purchases. For example, if a group has 5 members and each member contributes 1000 every month, then every month a member will have 5,000 to spend.

116

Purchasing Schemes – Hire Purchase

• For formal workers, such as office workers, hotel staff, managers and teachers (SACCO members), hire purchase has become a standard way of paying for household items.

• Most of the hire purchase companies in Kenya are locally owned, with central offices (Nairobi) and rural shops scattered around the country.

• Products sold by Hire Purchase firms include a wide range of household goods ranging from sewing machines to TV’s and stereos to fridges or sofa sets.

• Energy items include cooking appliances and solar home system kits. Goods are sourced centrally on a wholesale basis. Hire purchase contract terms typically last one to two years, and are directly debited from the paycheck of the consumer. The quoted purchase price includes interest on the item, which is often over 40% per annum

References: The Shell Foundation

117

Energy Lending• The Kenyan Union of Savings and Credit Co-operatives (KUSCCO) functions as a national umbrella organization for

Saving and Credit Co-operative Society (SACCO), which account for 40% of Kenya’s national savings.

• KUSCCO is a micro finance institution and has largely focused on the promotion of LPG for cooking purposes. They have also focused on several solar projects.

Energy Lending Model• Market Development: KUSCCO conducts market research to identify needs and feasibility of energy loans. The

energy company develops and markets the technology and trains KUSCCO staff in the technical details of its products.

• Appraisal and Processing SACCOs serve as the primary level micro financing institution to finance energy services through direct loans to clients.

• Disbursement: SACCO loans from KUSCCO for energy on- lending if necessary. KUSCCO issues check to energy companies on behalf of SACCOs to purchase energy equipment

• Installation and Training: For solar loans KUSCCO appoints and trains regional sub-contractors who install the systems as well as arrange basic user training under the supervision of KUSCCO. In case of LPG systems KUSCCO takes up a distribution function where in it collects information on energy needs from the SACCOs and purchases energy systems in bulk directly from the energy companies, distributes them to the SACCOs, which deliver the units to the clients.

• Repayment: SACCO recovers the loans on behalf of KUSCCO and KUSCCO monitors the repayment

Administrator

this is on a very limited scale as many Saccos want to manage the process on their own and avoid the bureacracy within the organisation

118

Active Fuel and Cook Stove Stakeholders in Each Segment

119

Active Cook Stove and Fuel Stakeholders

Client / Partners Scale Marketing ApproachMonitoring Effectiveness of ICS Project Challenges Project Success

Practical Action / GIZ, GVEP, Ministry of Agriculture, Solar Cookers international, Edinburg University, EnDEV

Large Scale

Market mapping for legal charcoal chain.

Focused extensively on women groups to aid in the marketing of alternative fuels and ceramic stoves.

Participatory Market Systems Development.

Participatory Market Mapping.

Working with CBOs and engaging local media (Radios adverts)

Monitoring of IAP

Transportation of ceramic stove products to market is a major constraint

Financing to ensure growth

Competition with substandard products which affects the market negatively

Producer groups trained on production and marketing of ICS (ceramic wood and charcoal burning stoves)

Promoters, retailers and distributor networks established

Scaling up of smoke removal interventions based on IAP monitoring

120



My climate

Large Scale (100,000+ stoves)

Use of women groups to disseminate stoves.

Microfinance scheme through community savings and learning groups.

Sustainable development indicators - Quarterly Monitoring of all indicators

Most effective: Ongoing quarterly surveys to ensure users are happy with stove functionality and use.

Investment for training monitoring and ongoing maintenance

Groups have been trained with installation skills and are marketing stoves as an income generating activity.

Networks and partnerships established to support stove activities.

Setting up microfinance scheme through Kasadimba Women's Group

121



Paradigm project / World Vision, Food for the Hungry, Compassion International, World Food Program, Impact Carbon, Blue Source, Envirofit, Fine Engineering, Chujio Ceramics

Large Scale (250,000+ stoves)

Subsidized two tier, variable priced, open market perspective.

Commercial Tier 1 - Market defined pricing, Retail vendor network, Supported by direct sales people.

NGO Tier 2 - Subsidized pricing strategy, Sold via CBO, Supported by NGO

Ongoing water boiling tests at manufacturing facility

Most effective: Quarterly monitoring of new project households and existing customers

Most effective: Annual follow up surveys of existing users

Biennial field testing to assess any changes to baseline. Reassessing performance of aging stoves

Most effective: Warranty system informs ongoing monitoring and allows for real-time response to any stove usage or performance issues.

High investment

Sold over 36,000 stoves

Carbon financing – Revenue subsidizes the price of the stoves by around 25-30%

122



co2balance

Micro scale – 2000+ stoves

Small Scale – 15, 000+ stoves

Large Scale > 15,000+stoves

Stakeholder meeting before product dissemination to engage local communities in the project process.

Trusted community based organisations aid in marketing of stoves.

Most effective: ICS quarterly monitoring - All damaged stoves replaced, stakeholders are interviewed to ensure they are happy with their stove's functionality

Sustainable development indicators - Quarterly Monitoring of all indicators.

Most effective: Biennial monitoring of stove use

Ongoing investment for new projects

Distributing networks established.

Effective monitoring procedure for damaged stoves.

Groups have been trained with installation skills and are marketing stoves as an income generating activity.

123

Active cook stove and fuel stakeholders


HIVOS / SCODE

Large scale

Awareness campaigns directed at low income target groups to inform them about benefits and availability of ICS and fuel wood production.

Targeting rural women through women's groups to effectively participate in the project both as entrepreneurs and beneficiaries.

Use of gender responsive approach in the implementation, monitoring and evaluating stages along the project

Difficult to develop local fuel wood supply in fuel scarce areas.

Technical support to entrepreneurs in installing ICS and planting trees at buyer’s place.

Training buyers on operation and maintenance of ICS.Training households and institutions on production, management and utilization of trees for fuel wood production.

Sharing information and knowledge on ICS, fuel wood and gender related issues.

124

Active cook stove and fuel stakeholders

Client / Partners Scale Challenges Project Success

Major LPG suppliers

Shifting LPG prices

Rising import costs and weaker domestic currency

Inaccessibility to rural communities

Oryx Energies - Over 150,000 LPG cylinders in Western Kenya

Established distribution networks with local shops and supermarkets

Hashi Gas - Installed two bulk LPG storage tanks at its Nairobi LPG plant

Oryx Energies

Marketed 100,00 + MT hydrocarbons.

Large Scale - Over 150,000 LPG cylinders in Western Kenya

TotalGaz Large Scale - Nationwide

Hashi Gas Large Scale - Nationwide

Total Kenya LtdLPG filling station in Thika Central Kenya

Unknown

125

Fuel and Cook stove Value Chains / Distribution Channels

126

Charcoal Value ChainWood production

Wood harvesting

Charcoal production

Charcoal transport

Large Scale Selling

Small Scale Selling

Charcoal consumption

Women Men Men

Men –

Large scale. Women – Small scale

Men and

Women

Women

Women

and Men

Low Skill

Tree seeding

Tree planting

Tree cutters / loggers

Charcoal packaging

Collectors

Local and national distribution through individual transport or SMEs

Large scale retailers

Small shop owners.

Road side vendors

Town and village vendors

Seasonal

Seasonal / Full

Time

Seasonal / Full time

Full Time

Full Time

Full Time

Full Time

Job split by gender

Job type

Full time / part time

Charcoalers

Kiln construction

127

Charcoal Value Chain

Average Age 39 35 34

Share of Women 16% 14% 57%

Owning business

95% 88% 67%

Formal Education

Primary 58%; Secondary 30%; Tertiary 3.8%

Primary 50%; Secondary 36%Tertiary 4%

Av. gross income per month

Kshs. 4,496 Kshs. 11,298 Kshs. 7,503

Full time business

51% 43% 74%

Wood production/Harvesting

Charcoal transport

Vendors

Source: National Charcoal Survey

128

Charcoal Distribution• Women are primarily involved with tree seedling planting, watering, tending and selling. They

also care for the tree as it grows on the land. Men also partake at this level; however they are much more heavily involved in tree cutting and tree burning.

• Wood harvesting is done by the Tree Cutters/Charcoalers, who cut the wood and stack it systematically in a pile into an earth mound kiln. The kiln is then fired and left for between 7 and 14 days.

• After cooling, the charcoal is offloaded from the kiln and packed into bags which range from 28 to 42 kilograms with 35kg being the average. The charcoaling process generally takes between ten to twenty one days.

• Women and men both take part in charcoal packaging. Packed charcoal is sold to the transporters at the charcoaling site or transported to the roadside, mostly using human labour; awaiting customers who are either transporters to the urban centres or consumers who directly get their charcoal from the charcoalers.

• Transporting the charcoal to markets/end users can be challenging. Pick ups and LGVS are the most commonly used means of transport. Some rural areas still view charcoal production as illegal, even though there has been recent legislation to support sustainable charcoal production. May rural areas still pay bribes to law enforcement along transport routes.

Sources: PISCES (2010), Cologne University of Applied Sciences Institute for Technology and Resources Management in the Tropics and Subtropics (2010)

129

Fuel Wood Value ChainWood production

Wood

harvesting

Fuel

wood transport

Large Scale retailing

Small Scale retailing

Fuelconsumption

Women MenMen and

Women

Men and

WomenWomen

Women and Men

Low Skill

Tree seeding

Tree planting

Tree cutters / loggers Wood

packaging

Collectors

Local and national distribution through individual transport or SMEs

Large scale retailers

Small shop owners.

Road side vendors

Village vendors

Seasonal

Seasonal / Full

Time

Full Time

Full Time

Full Time

Full Time

Job split by gender

Job type

Full time / part time

130

Fuel Wood Value Chain• Fuel value chain is characterized by a marked fragmentation

of operators (producers, transporters and retailers) who tend to work in isolation on an individual or informal basis.

• Fuel wood and other biomass resources generate at least 20 times more local employment within the national economy of Kenya than other forms of energy, per unit consumed (UNEP 2012). This is due to the huge amount of manpower (unskilled labor) required for harvesting, processing, transporting and trading of the fuels.

Cologne University of Applied Sciences Institute for Technology and Resources Management in the Tropics and Subtropics (2010)

UNEP The Role and Contribution of Montane Forests and Related Ecosystem Services to the Kenyan Economy (2012)

131

Producti

on Platform

Gas

Processing Plant Refinery

Pri

mary Storage

Bulk transport

Distri

buti

on depot

Consumer

LPG Value Chain

LPG import Import terminal

Highly Skilled

Highly Skilled

Highly Skilled

Low skilled

Low skilled

Skill type

132

LPG Value Chain

There are two state-owned enterprises relevant to the LPG industry in Kenya:• Kenya Petroleum Refineries Limited, a joint venture owned on a 50/50 basis by the state and

Essar Energy Overseas Limited, owns and operates a hydroskimming refinery with a throughput capacity of approximately 4.5 million tonnes per year. There’s an imbalance between refinery production and domestic market requirements for black oils (residual fuels such as heavy fuel oils and industrial diesel). This results in a maximum refinery production yield of LPG in the range of 28,000 to 30,000 tonnes per year. Demand for LPG in Kenya has increased in the last five years from 49,400 tonnes in 2005 to 87,800 tonnes in 2010, an increase of about 78 per cent.

• Kenya Railway Corporation (KRC) transports LPG in rail tankers from the Mombasa storage depots owned by the four LPG supply/distribution companies to their storage and bottling installations in Nairobi. The private industry operators in the LPG supply and distribution business are Caltex, Libya Oil Kenya Limited (branded OiLibya), Shell (a joint venture with BP), TOTAL (TotalFinaElf), Kenol/Kobil and some relatively new participants—Hashi Energy (Hashi Gas), BOC (Handigas) and Hunkar Gas. The National Oil Corporation of Kenya Limited also indicates that it has entered into LPG distribution. Source: Houston International Business Corp

(2011)KNBS (2011)

Production Platform

Gas Processing Plant Refinery

Bulk transport

133

LPG Value Chain

• The LPG companies import in a joint procurement operation. The joint cargoes are normally in the range of 1,200 to 1,300 tonnes each.

• Typical import sources are Aden (Yemen), South Africa (seasonal availability), and from as far away as.

• LPG terminal at Shimanzi in Mombasa has a storage capacity of just 1,400 MT. Tankers carrying 2,500 tonnes of gas have to off-load subject to availability of storage space.

• Africa Gas and Oil Ltd (AGOL) has completed building a bulk import handling and storage terminal at Mombasa to ease the quick offloading of sea tankers ferrying over 5,000 tonnes of LPG from the Middle East. The depot has a storage capacity of 14,000MT

Sources: Houston International Business Corp (2011). Ministry of Energy, KNBS 2011

LPG Import

ImportTerminal

Primary Storage

134

LPG Value Chain – Distribution Depots

• In Kenya, companies have between 75 and 220 service station outlets. Over two thirds of these outlets are located in major urban centres such as Nairobi, Mombasa, Kisumu or Nakuru. Stations are either owned by the company or franchised to local dealers with strict relationship rules.

• Caltex, OiLibya, Shell and TOTAL each have small bottling plants in Mombasa as well as larger plants in Nairobi.

• BOC also has a bottling plant in Nairobi which provides hospitality to Kenol/Kobil. In addition OiLibya has a small plant in Eldoret, which also bottles TOTAL cylinders under a hospitality arrangement.

• Hashi Energy (Hashi Gas), BOC (Handigas) and Hunkar Gas also have filling facilities. • The LPG cylinder sizes have been regulated and harmonized by The Energy (Liquefied Petroleum Gas)

Regulations, 2009, to four allowable sizes for household use: 1 kg, 3 kg, 6 kg and 13 kg. The valves and regulators have also been standardized (unified) to facilitate market competition and ensure safe practices.

• The operators also have larger cylinder sizes such as 22.5 kg, 35 kg and 50 kg to serve commercial and light industrial consumers, as well as bulk distribution operations serving stationary bulk tanks installed at industrial/commercial sites.

Source: Houston International Business Corp (2011)

135

LPG Value Chain – End Users

• The distribution companies in Kenya are owners of their entire cylinder stocks. The end users use them on the basis of having paid an initial deposit and the companies are readily disposed to returning the original deposit to any end-user who wishes to return cylinders belonging to their respective companies.

• The Energy (Liquefied Petroleum Gas) Regulations, 2009 established minimum cylinder ownership provisions of the companies in order to be licensed as well as provisions for an LPG Cylinder Exchange Pool which restricts the filling of cylinders owned by others to members of the Pool.

• The Kenyan government wants to encourage the use of LPG as a measure to counter deforestation, and to this end the government has laid out several policy initiatives that it hopes will reduce the price of LPG for consumers.– One important measure is the standardization of LPG cylinders and valves which allow

consumers to choose their LPG supplier based on the cost alone. This measure will encourage cost competition among the LPG suppliers thus reducing the consumer LPG prices.

136

Value Chain – Improved cook stoves

Artisanal Assemblers

Local Manufacturer / Assemblers

Overseas Manufacturer/ Assemblers

Transport of components/Materials

Intermediary Broker

Stockists, Vendors,

Retail

Organisations Promoting

Stoves

End Users

Onsite Material/

Component Producers

Shipping

Storage / Warehousing

Local Distribution

(CBOs, NGOs)

In bound Logistics

Operations Outbound Logistics

Marketing, Sales, Service

137

Distribution ChannelsValue chain Distribution

Onsite Material/Component Producers

Coastal - Local materials available - New steel sheet, Recycled steel sheet (oil drums etc.), Wire mesh, Bricks, Pottery clay, Stone, Cement.

Central and Western – High availability of potter clay in both regions. Clay required for stove liners is sourced locally . Therefore, all components are sourced, made, and distributed locally.

Raw material collection is generally contracted by large scale distributors or purchased from fragmented sources by small scale contractors.

Myclimate and Practical action Upesi stoves generally produced by locally available material in Central and Western regions.

ChallengesClay as a raw material is in decline following introduction of concrete.Obtaining environmental licence can be vulnerable to corruptionQuality control on materials can increase administrative costs.

Transport of components / raw materials

Usually contracted out to local businesses. Transported by locally/nationally hired LGVs/HGVs.

Dilapidated road networks and seasonality of material supply can cause delays. Access to materials dictated by location (rural areas can be difficult to access).

Road infrastructure in Western Kenya better than Central and Coastal.

138

Value chain Distribution

Overseas manufacturers / Assemblers

High administration costs for overseas manufactures. Raw materials for stove production may not be locally available. Income and general business of small scale local operators can be adversely affected by overseas companies.

Paradigm project imports Envirofit stoves from the USA and distributes them through retail or NGO partners. Envirofit also has a manufacturing plant in Nairobi

Local Manufacturers / Artisanal Assemblers

Done by men/women through NGO/CBO groups. Women are mainly involve in liners production and stove assembly whereas metal work is dominated by men.

Logistics Stoves that are manufactured on site are transported to warehouses via hired HGVs, LGVs.

co2balance’s stoves are manufactured at Coast Clay and transported stoves from the main Mombasa factory to warehouses at the project location.

Storage ICS are stored in warehouses in close proximity to or in project area. This can be up to one week before distribution

co2balance negotiates short term renting contracts with community businesses to generate local employment in project area.

Distribution Channels

139

Value chain Distribution

Local distribution CBOs, NGOs Poor infrastructure and road networks can cause delays. Distribution costs can be high depending on location.

Carbon offset practitioners may choose areas with high baseline consumption (which tends to be areas of lesser need for ICS projects).

Micro finance schemes may be needed in low income rural areas.

Organisations promoting stoves

My climate, Practical Action and Scode work closely with women groups. Radio and news paper adverts most effective in reaching large scale target market.

Vendors/ Retail Groups sell at open markets and to big and small retailers on demand. Most retailers arrange for their own transportation.

Retailers and Govt/ NGOs arrange for their own transportation to pick up the finished products and distribute them appropriately.

GVEP scheduled to work with Women Enterprise Development Institute (WEDI) - fund manager with a portfolio of 800 women’s savings and credit groups operating in the larger Central Province of Kenya.

End Users Purchase ICS from retail or NGO/CBO group; through savings or microfinance scheme.

Purchase liners, raw materials from local small scale businesses to manufacture stoves (Firewood jiko, upesi stove, Rocket mud stoves).

Usually sign carbon transfer forms from project developers in carbon financing projects - subsidized ICS.

Distribution Channels

140

Distribution Channels – Jiko Poa / EnvirofitLocal Production

Jikopoa

Import

Envirofit3rd Party Warehousing

3rd Party Logistics

Distribution and Wholesale

NGO Partner

Consumer

RetailCommunity Based Organisation

Imported from overseas (USA), Manufacture locally (Nairobi)

Sourced from local materials.

Women’s groups / distribution through microfinance schemes

Made locally by fine engineering through mechanised process. Liner made locally in Limuru

141

Value Chain – Energy related products

Factories

Suppliers / International and Local

Urban head office

Retail distribution network

Households& Rural Market

Companies either manufacture their own products or handles a line of imported products and has its own fully owned distributors in strategic parts of Kenya. Typically, the company has a head office (Nairobi) with strategic outlets in major towns around the country.

Companies operate through their distributors but often sets up strategic relationships with independent dealers, NGOs or CBOs. Companies in the PV, consumer electronics and auto parts market are often set up this way. This type of business may be locally owned or owned in partnership by local and international groups. Most goods are sold strictly on a cash basis. Credit for customers is “out-sourced” by offering the goods through established credit systems (i.e. in SACCOs) or by offering products through separate hire purchase dealers.

Source: The Shell Foundation

142

Distribution Channels – Solar technology

Central DistributorImport/distribute durable and affordable quality productsTrain rural distributorsQuality control and technical backup

Rural distributorProvide financial services to end users.Ensure availability of productProvide after sales services

End users

Main distributors: SNV, ENDEV, GIZ. SNV has partnered with ENDEV through GIZ Kenya in implementing a solar PV Project in ten counties in Kenya; Central and Western regions.

In the current distribution model , SNV has signed partnership MOUs with 7 of the Lighting Africa Associates based in Kenya. SNV collaborates with both Lighting Africa and rural distributors to create awareness about the availability and benefits of using solar technology to replace kerosene lamps.

Awareness creation is done through road shows, media and local stakeholder forums. SNV is also involved in the capacity building of both the rural distributors as well as Last Mile Entrepreneurs who are responsible to develop innovative financing mechanisms. These include check off systems, micro finance and lay away payments.

Visionary Empowerment Programme is a leading rural distributor in Central Province (Thika) and has a successful microcredit programme for over 7,000 of their women groups members.

Source: SNV

143

Current market products in Segments – Specs

Products Design Weight /kilograms Specs: width X height

Envirofit G3300 6 29cm x 29cm

Envirofit CH-5200 Charcoal 3.4 35cm x 16.2

Envirofit CH-2200 2.3 31.3cm x 15.4cm

144

Current market products in Segments – SpecsProducts Design Weight /kilograms Specs: width X height

Envirofit M5000 HH Wood Stove7

4.2 32cm x 28cm

Jikopoa Unskirted HH Wood Stove

- -

LifeStove (EzyCharcoal) / Metalrax HH Charcoal Stove

- -

145

Current market products in Segments – SpecsProducts Design Weight /kilograms Specs: width X height

EcoZoom- Zoom Jet Charcoal Only Stove

8.5 28cm x 26cm

co2balance / CZK 3 35 36cm x 21cm,

146

Products Design Weight /kgs Spec width X height

Ezystove 2.8 33 cm x 30.5cm

Fireless cooker 9 – 20 -

ICS - Ceramic liner, Kuni Mbili, Upesi, Rocket stove, Jiko Kisasa

- 25cm X 16cm


147



D.light S250 (Solar lanterns – combined lighter and mobile charger)

0.350 (lantern only) 12.7 cm X 13.7cm

D-Light S10 0.3 3.5cm X 7.9cm

LifeStraw Portable Water Filter 0.095 2.9cm X 23.3

148



Barefoot firefly 12 mobile weight – LED Lamp

0.5 -

Powapack junior 2.5 matrix and Powapack 5w – Solar lantern

1.9 6.5cm x 10.5cm

Trony Solar Sundial TSL-01 – Solar Desk Lamp

0.39 -

Permanet 3.0 – Insect net

-

Insecticide (deltamethrin) 4.0 g/kg

Synergist (PBO) 25 g/kg160x180x150cm190x180x150cm

149

Current market products in Segments – SpecsProducts Design Weight /kgs Spec width X height

Silver lined ceramic water filter 20-30 kgs Ceramic pot ~30cm x 25cm

Safi solutions ceramic water filter

Unknown unknown

150

References• Delahunty-Pike, A., (2012) Gender Equity, Charcoal and the Value Chain

in Western Kenya. Policy Innovation Systems Clean Energy Security Policy• Matthews, W.G., Zeissig, (2010) H.R, Residential Market for LPG: A

Review of Experience of 20 Developing Countries. Houston International Business Corp

• Slaski . X and Thurber, M., (2009) Cookstoves and Obstacles to Technology Adoption by the Poor

• SNV, Solar Energy - Access to Clean and Affordable Off-Grid Lighting Solutions for the BOP http://www.snvworld.org/sites/www.snvworld.org/files/publications/snv_kenya_solar_fact_sheet.pdf [Last Accessed: June 2013]

• The Shell Foundation Sustainable Energy Programme, Kenya Country Report