In the heart of Kenya's development lies a challenge that echoes across many developing nations - the pervasive impact of traditional biomass cooking methods and inefficient space heating practices. According to the Kenya Demographic and Health Survey report of 2022, conducted by the Kenya National Bureau of Statistics (KNBS), about 76% of Kenyan households grapple with the adverse effects of traditional cooking practices, contributing not only to indoor air pollution but also exacerbating deforestation and fostering a landscape for health-related concerns. The prevalence of open fires and traditional cookstoves adds a layer of complexity to the situation, as communities extensively rely on wood and other biomass for fuel. Despite strides in electrification where circa 90% of urban households are connected to the national grid, a significant divide persists as only 36% of rural households have access to electric power. The urban-rural disparity in clean cooking solutions is stark, standing at 59% in urban areas and a mere 6% in rural regions. These challenges underscore the urgent need for transformation in household energy practices.
The absence of clean culinary facilities is not exclusive to Kenya; rather, it is a significant issue in Sub-Saharan Africa (SSA), where a mere 17% of the populace presently possesses access to such solutions, and the detrimental consequences are particularly pronounced. From 2000 to 2020, there was a significant increase in the number of people in SSA who lack access to clean cooking. This increase outpaced the growth in access during the same period. This not only highlights the magnitude of the challenge but also situates it in the global context. The situation is symptomatic of a larger fight, echoing the global aspiration expressed in the United Nations Sustainable Development Goal 7 (SDG 7) - ensuring access to affordable and clean energy for all. The interlinkages between clean cooking, deforestation, health, and the overarching SDGs weave a story of both a challenge and opportunity that requires inventive and concerted approaches.
Government of Kenya interventions
The Government of Kenya (GOK), in recognition of the significant challenges posed by traditional cooking methods, has undertaken substantial initiatives such as awareness campaigns to promote clean cooking. The GOK is aligned with SDG 7 goals and aims to ensure universal access to modern energy cooking services by 2028. In addition, the comprehensive Kenya National Clean Cooking Strategy (KNCCS), is a manifestation of this commitment and delineates goals, including a 60% increase in awareness and adoption of clean cooking stoves within three years (2023 - 2025). We note that the objective of KNCCS is to lay out the pathways that will enable the achievement of the Ministry of Energy and Petroleum's ambitious goal of "Universal Access to Clean Cooking by 2028" and aims to abate the emission of 2.8 MtCO2eq in 2030, a target that seems quite ambitious given the prevalence of traditional cooking methods in the rural parts of the country. While past efforts have been made, the development of this novel strategy emphasises the government's dedication to accelerating the adoption of improved cooking solutions. Through the KNCCS and collaborations with key stakeholders like the Clean Cooking Alliance, the Kenyan government is actively shaping a cleaner and more sustainable future for its citizens, especially in peri-urban and rural areas. Green finance emerges as a pivotal option for promoting clean cooking initiatives, as it not only addresses environmental concerns but also aids in achieving developmental goals and overcoming financial challenges.
Green Finance initiatives
Green finance, an innovative financial approach aligned with environmental sustainability, serves as a crucial option for governments and corporations in Kenya aiming to champion clean cooking and heating solutions. By leveraging green finance mechanisms such as green bonds, both public and private entities can secure funding for initiatives that mitigate environmental impact and promote the adoption of eco-friendly technologies.
In June 2019, the Government of Kenya took a decisive step to bridge the financing gap for clean cooking initiatives through the launch of a USD 47 million Result-Based Financing (RBF) and Debt facilities under the Kenya-Off-Grid Solar Access Project (KOSAP). The RBF and debt facilities aim to encourage the private sector to provide solar and clean cooking solutions to 1.1 million people in marginalized regions. The Clean Cooking Solutions Challenge Fund, part of the KOSAP, encourages the adoption of clean cooking stoves in environmentally sensitive areas, addressing economic and health concerns.
In a pioneering move, Burn Manufacturing Company (Burn), based in Kenya, which specialises in producing clean cookstoves, issued a USD 10 million green bond, the first of its kind in SSA, in October 2023 dedicated to clean cooking financing. This transformative step supports the expansion of Burn's clean cooking solutions with establishment of a new manufacturing facility in Lagos, Nigeria and scaling up production of clean cookstoves from 400,000 to 600,000 units per month. Burn's Kuniokoa and Jikokoa stoves have International Workshop Agreement (ISO/IWA) Tier 4 thermal efficiency ratings, which means they consume 71% and 81% less wood and charcoal than open fires, respectively. Furthermore, a unit of Jikokoa saves about 0.56 kg of charcoal/day, translating into 204 kg of charcoal savings per year and reducing greenhouse gas emissions by up to 4.46 tons of CO2 per annum. The funds from the Green Bond aim to extend these advantages to an additional 2 million households by 2024. Verified by esteemed institutions, including the University of Pennsylvania and the University of Chicago, Burn's stoves deliver significant health, financial and climate benefits and these credentials were independently assessed through a Second Party Opinion (SPO) provided by Agusto & Co., a Green Bond Verifier.
In addition, Koko Networks, a company based in Nairobi, Kenya, specialises in ethanol-based clean cooking solutions. Over the course of four years (2020-2023), the company leveraged over $100 million in carbon finance to introduce clean cooking fuel to more than one million households in Kenya by tapping into international carbon markets. The ethanol-based smart cookers redefine clean cooking, offering precision, convenience, and environmental sustainability. By subsidising clean energy cooking, Koko Networks reduces the costs of stoves by 85% and cuts fuel costs by 25% to 40%, making this innovative solution affordable for a broader spectrum of households. By transferring significant carbon value into the purses of Kenyan citizens, this strategy effectively transforms the energy provision landscape in the nation.
Burn Manufacturing and Koko Networks are enhancing the economic welfare of households in Kenya while also transforming the clean cookery sector by means of their endeavours and astute application of green finance. The issuance of green bonds and the creative utilisation of carbon finance not only propel their manufacturing and distribution capacities but also drive down costs for end-users, bringing the benefits of clean cooking to a broader demographic. These success stories underscore the pivotal role of innovative financial mechanisms in the transformative journey towards sustainable and affordable clean energy solutions.
Conclusion
As Kenya endeavors to transform household energy, the narratives of Burn Manufacturing and Koko Networks illuminate the way forward. Nevertheless, the urgency of this transformation extends beyond individual households; it's a collective responsibility critical for achieving global climate goals. Initiatives like the KOSAP project, which allocated USD 47 million to provide solar and clean cooking solutions to around 1.1 million people in marginalized regions in Kenya, emphasize the scale and commitment needed. Agusto & Co. notes that without further decisive actions such as the Kenyan government's ambitious targets of reducing 2.8 MtCO2eq carbon emissions by 2030, the goal of attaining the 1.5°C global warming limit by 2030 and achieving net zero by 2050 may slip beyond reach. In our view, through partnerships, innovation, and a shared commitment to change, clean cooking isn't just a necessity; it's a beacon of hope for a sustainable and thriving future for Kenyan households.