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Development and Commercialisation of Improved Stoves in Rural West Kenya - The Upesi Project
Duration: 1996 to 2003 [top] [end]1.0 project summary[top] [end]1.1 locationThe project has worked with pockets of communities in West Kenya and started in 1996 and was completed in 2003. The aim was to articulate and test the commercial dissemination of rural stoves. These have mainly been in five districts, Trans Nzoia, Mumias, Kisumu, Rachuonyo and Bondo. All the marketing work has been growing from the production centres.[top] [end]1.2 Key statisticsLocation: Five districts, Trans Nzoia, Mumias, Kisumu, Rachuonyo and BondoScale: Large No. of Beneficiaries -current (As at end of project): 15 active producers, 3 stockists, 4 retailers, 13 promoters -Projected (number of beneficiaries): 16 new producers, 15 active stockists, 50 active retailers [top] [end]1.3 Contact detailsIntermediate Technology Development Group Eastern Africa (ITDG-EA)P.O. Box 39493 - 00623, Nairobi, Kenya AAYMCA Building, Along State House Crescent, Off State House Avenue Tel: +254 20 2713540 / 2719313 / 2719413 Fax: +254 20 2710083 Web site: www.itdg.org [top] [end]1.4 Replication potentialThe project, which aimed at commercialising rural improved stoves, has high replication potential. The commercialisation of rural improved stoves has taken root in West Kenya with several women groups taking up the production and sale of rural improved stoves even after the project ended.According to the final project evaluation, 5 partner projects in the East African region had adopted the concept of commercialisation of rural improved stoves. 10 organisations had also embraced the concept. Examples of organisations that had taken up the commercialisation approach include KENGO, Amani Community Development Centre and the Dioceses of Maseno South. However, some organisation chose not to follow the commercialisation approach in the dissemination of improved stoves opting for a subsidised approach. In addition to this, requests for training on the commercialisation of rural improved stoves have been made from 5 countries including Tanzania, Ethiopia, Nigeria and Zimbabwe in Africa and as far of as Papua New Guinea. The project has already conducted training on stove production and kiln construction for two groups in Tanzania and one in Zimbabwe. Exchange visits have been conducted for community-based groups in the region. [top] [end]2.0 fundingThe European Union (EU), the Ashden Trust and the Department International Development -Civil Society Challenge Fund ((DFID -CSCF) provided for funding for the project.[top] [end]3.0 backgroundMore than two thirds of the population of Kenya rely on biomass (wood, charcoal and agricultural residue) for their energy needs. The majority of biomass energy users live in poor communities that are facing problems, such as health problems, associated with the continuous use of inefficient stoves or three-stone fires. Although improved stoves are not the only means of addressing this issue, they play a crucial role in reducing fuel consumption and contributing to improving overall family health and safety in the kitchen.The Rural Stoves West Kenya (RSWK) project which began in April 1990, had evolved from two earlier projects jointly implemented by Intermediate Technology Development Group (ITDG) and KENGO (Kenya Energy and Environment Organisation). These were:
In 1995, ITDG's Rural Stoves West Kenya Project ended and a new phase focusing on commercialisation was initiated as the Upesi Project. The new project launched an intensive campaign to improve the sustainability of stove-related income generating activities among women's groups. The intended outputs of the project were as follows:
The project had 4 objectives, which included:
[top] [end]4.0 project descriptionThe project involved the development and marketing of rural domestic stoves. The activities were chiefly aimed at commercialisation and involved working with individual community members (in the communities where stove production was taking place), as well as promotion, retailing, stocking and selling of stoves. The key intermediary of focus was the promoter who had to create awareness on the stove, sell and install the stoves at a profitable price.[top] [end]4.1 Planned activitiesThe project's activities were envisaged to be undertaken in two main phases as outlined below.Phase 1
Phase 2
Phase 2: Extension - Winding Up Activities This involved the consolidation and finishing of the Upesi Project All the Phase 1 activities were carried out. A consultancy firm was contracted to conduct a baseline study and a Stoves Marketing Consultancy report was prepared. Subsequently, a Stoves Marketing Strategy was also developed and adopted in the commercialisation of the stoves. Two new stove designs were developed and tested in the laboratory. Individuals and groups were trained on the production of each of the new designs. Following training needs assessments, training was also offered to the promoters and stockists who constituted the key-marketing intermediaries. Implementation of the planned activities of Phase 2 varied with most of the activities being fully implemented, and a few partially implemented. Promoters carried out demonstrations to market the products and bicycles for transporting end products were supplied on loan basis to the intermediaries. 3 out of the 7 women groups earmarked to receive bicycles received them. Radio advertisements however were not produced and aired. A total of 18 trainers/promoters were trained in kitchen improvements and use of fireless cookers. The users survey was not conducted but the exit strategy was developed, through the formation of a network of stove promoters known as West Kenya Network (WESTNET). Some of the activities planned for Phase 2: Extension - Winding Up Activities were not accomplished due to the lack of funds. The table below gives an indication of the progress towards the achievement of the expected outputs. Table 1: Objectives, indicators and progress of the Upesi project as of September 2000
[top] [end]4.2 Cost of serviceThe project intended for the producers and intermediaries to earn an income from the production and sale of the stoves. A total of eight producer-groups, or at least 50 women were trained directly by the project, and so were at least 23 promoters, eight retailers and five distributors.On average, stove producers devoted two to three hours a week to stove production. Every active group member could sell 510 stove liners and earn over US$ 200.00 in a year, or US $17.00 per month. If producers sold directly to the users, they could then make an extra US$. 1.00 per stove for installation. Stove promoters made an average US$ 200.00 per year. As a result of stove related activities, standards of living among these women have improved. The final price to the customer for the stoves varied according to the type of stove (Table 2). These were quoted at US$. 3.00 for the installed Upesi Stove, US$.7.00 for the Portable Upesi Stove (A ceramic stove liner fitted in a metal cladding and sold as a portable stove) and US$ 3.00 for the Upesi Lira Stove (An "upesi" stove made with a base, 3 small legs and 2 handles, and used without installation) . The following is the pricing structure upon which the overall cost of the products was based:
The table below is an indication of the price break down for the sale of the rural improved stoves. Table 2: Price Break Down for the Sale of Rural Improved Stoves (as at 2000)
Project Cost to Benefit Ratio (Overall Benefit from the Project in Relation to Cost) Total project investment at July 2000 was £St 295,140. The total benefits (to stove users, producers and intermediaries) calculated at present day values (2000) accruing from the 15,300 stoves directly attributable to Upesi Project were Ksh 55,241,900 equivalent to £St 502,200 (at an exchange rate of Ksh 110 to £St 1). This yielded a 'Benefit to Cost Ratio' of 1.7, and a return on investment of 28%. [The result is most sensitive to the shadow wage rate.] Assuming the benefits accruing from all the stoves produced and marketed during the project life (i.e 1996 to 2000) are Ksh 97,160,200 equivalent to £St 883, 275, the 'Benefit to Cost Ratio' is 3.0 (Abbott, 2000). This implies that the project was well worth investing in from a business perspective, giving the communities an excellent opportunity to earn some livelihood. [top] [end]4.3 Delivery structureThe improved stoves were delivered to final consumer through a chain of intermediaries. These include stove retailers responsible for selling the stoves directly to end-users. They also include the producers themselves and stockists. Stockists, who differed from the retailers on the basis of the large number of stoves stocked on their premises, sold their stoves either directly to the end-users or to retailers.Urban-based artisans were identified with the help of already active stove producers. They were responsible for metal cladding stoves and selling the cladded stoves either to wholesalers, stockist, and retailers or directly to the users. . Stove promoters were involved in the promotion of the rural stoves while stove producers were responsible for production of stoves. Each of the above intermediaries and producers received training on the commercialisation of the stoves based on their needs. Training thus varied for each of the different groups of intermediaries. The table below gives an illustration of the training offered to the various actors. Table 3: Training offered to actors in the production and marketing chain
Three distributional chains were proposed for the delivery of the stoves to the final end users. These are illustrated in Box 1 below. Box 1: Proposed distributional chains  Because rural stoves are locally produced and marketed in rural areas, their commercialisation is dependent on establishment distribution networks, hence the emphasis on intermediaries. The project adopted all three channels above, as applicable in different locations. Producers could either sell stoves directly to users particularly near production centres, or to promoters/installers who sold to users or to retailers in rural and urban areas. [top] [end]4.4 Implementation progressThe project was implemented between 1996 and 2001, though it was meant to have ended in 2000. It achieved 60% of the intended activities (Syagga, 2000). The availability of funds constrained the implementation of some of the activities that had been planned for the project. Particularly affected by this was Phase 2 Extension: Winding up activities.[top] [end]5.0 project managementITDG-EA was responsible for the overall management of the project[top] [end]5.1 Local project personnelWomen organised themselves into groups and were able to produce the stoves after training from ITDG-EA[top] [end]5.2 Project management team
[top] [end]6.0 lessons learnt[top] [end]6.1 socialEnd-user acceptability of project process The community has accepted the project. Women potters have embraced the production of the stoves and now produce them on a commercial basis.Empowerment of women A number of women have had their self-esteem and confidence enhanced through participation in the Upesi project and are now being co-opted into a number of development committees in their communities. The interactions they have had through the training sessions, seminars and visits to different places has widened their outlook and aspirations. Thus some women are now becoming extension workers and strong change agents in their communities. Participation in Community Development Knowledge obtained by the project beneficiaries can be used in other business activities. In addition to this, awareness created among actors and their associates can contribute positively to community development by encouraging the various actors to participate in project development committees as well as religious organizations. [top] [end]6.2 economicAffordability During field tests, the affordability of the stove was determined on the basis that "if an ordinary lady can sell bananas or a chicken to afford a stove, then the price is ok." The price was then pegged at KShs70 ($.95). However, the determination of price was revised and pegged upon the cost of production, transport and marketing activities. This prompted the price to increase from KShs. 70 ($.95) to KShs. 120 ($ 1.5) to cater for production costs.Income generation Commercialisation of stoves has an impact on community poverty alleviation. Those involved in the commercial activities related to stove production and marketing are able to earn some income to support their families and even pay their children's school fees, thus reducing the school drop out rate, caused by lack of school fees. It is estimated that in the 5 years that the project run, about Kshs 1,950,000 (£ 17,727) was generated for the families involved in the project. A total of 8 producer groups were trained directly by the project. An additional 23 promoters, 8 retailers and 5 stockists were also trained. These earned a profit of up to KShs 30 each for each stove sold. Table 4: Producer mark up, installation fees and seller mark up for various stoves
Employment creation Commercialisation does not only lead to increased incomes for producers, stockists, promoters and artisans, but also creates employment for people in rural areas. Producers and intermediaries employ casual labourers when needed to assist in production and transportation of stoves. Women producers have offered employment opportunities to others as labourers in procurement, processing or transporting of clay, liners and fuel wood for firing liners. [top] [end]Ecological / environmentalEnergy conservation The wood fuel crisis in Kenya cannot be over emphasised. The project introduced in the project districts, an awareness of the need to conserve energy not only to those households that bought the stoves but also to those that listened to promotional talks in public gathering and the show grounds. A cost benefit analysis of the project revealed that fuel savings if 90kgs per month for each household using Upesi stoves, representing a 40% saving in fuel use was a positive environmental effect of the project in terms of less felling of trees. Reforestation and reduced deforestation Equally important is the influence on tree planting from actors in their neighbourhoods. For instance, it is reported that in 1999 stove producers planted 2500 seedlings while the intermediaries planted another 3773 seedlings as part of the efforts to replace the wood they use for firing the stoves. Soil conservation issues. Unfortunately, however, while there were positive environmental outcomes, there were also negative environmental effects from the project. One such effect is the impact of clay harvesting on soils in the production areas. As noted by the Keyo Women Group, the clay along the river bank that they have been harvesting soil from is now exhausted and they are encroaching on people's agricultural land, which though they are paying for, may in the long run affect crop production. Thus the project needed to continuously teach simple forms of soil reclamation to the stove producers. This can be done with agricultural extension workers and soil conservationists in the affected areas. This risk will even increase if the stove production attracts investors and becomes formal with definite production schedules rather than present 'jua kali' (small skill informal sector) business operation, which is casual. [top] [end]6.4 Implementation lessons
Innovative ideas from stoves marketing
[top] [end]7.0 REFERENCES and DOCUMENTATIONSyagga P. M. 2000. "Upesi project Final Evaluation." Intermediate Technology Development Group. Nairobi, Kenya. September 2000.Abbott V. 2000. "Upesi Project: Cost benefit Analysis." Intermediate Technology Development Group. Nairobi, Kenya. July 2000. IT Kenya, 1997. "Upesi Project Proposal to the Tudor Trust." Intermediate Technology Development Group. Nairobi, Kenya. May 1997. Abbott V. and Omotto J. 1998. "Upesi Project: Internal Evaluation January 1996-March 1998." Intermediate Technology Development Group. Nairobi, Kenya. May 1998. Abbott V. and Owalla H. 1995. "Development and Marketing of the New Improved Stoves: The Upesi Project. Project Document 1995/6-1998/9." Intermediate Technology Development Group. Nairobi, Kenya. May 1998. Muchiri L., Gitonga S., Waudo A. 2003 "From Stoves to Wealth: The Role of Commercialisation of Rural Stoves in Development and Poverty Reduction, Intermediate Technology Development Group, Nairobi, Kenya. Upesi Project | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 Page created:
05 May 2005; Last edited:
05 May 2005; Version: 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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