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Commercialization of Improved Stoves: The Case of the Kenya Ceramic Jiko (KCJ) by Dominic Walubengo
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[top] [end]“No Money, No Stoves” - Marketing, subsidies, credits[top] [end]IntroductionSince 1982, the Kenya Energy and Environment Organizations (KENGO) have spearheaded the promotion of the Kenya Ceramic Jiko (KCJ), an improved charcoal-burning stove aimed at the urban market. The KCJ has two main components: metal and fired clay. Both these parts are made by entrepreneurs; the metal part (cladding) being made by small-scale enterprises or individual artisans, while the clay part (liner) is manufactured by slightly larger and more organized enterprises or women’s groups. The KCJ is sold by the artisans directly to their customers or through commercial outlets such as retail shops and supermarkets. The stove is promoted mainly by KENGO and the Kenyan Ministry of Energy, through the mass media (newspapers, radio, television); market demonstrations and trade fairs. Because of this sustained promotion, there are now more than 200 artisans and micro-enterprises manufacturing some 13,600 improved stoves every month. To date, it is estimated that there are some 700,000 such stoves in use in Kenyan households. This represents a penetration of 16.8% of all households in Kenya, and 56% of all urban households in the country. Whenever the success story of the KCJ is told, it is often forgotten that all was not plain sailing during its inception.[top] [end]Why improved stoves?The KCJ found another charcoal stove in use in Kenyan urban households: the Traditional Metal Stove (TMS), which had been in existence on the Kenyan scene since the 1890s, having been brought in by Indian railway builders. Thus by the 1980s, almost every urban home in Kenya, and many rural ones, had a TMS in their kitchen. What, then, made so many urban households switch to the KCJ? Economic considerations! The urban households were already paying for fuel (charcoal), the price of which seemed to be forever increasing. Therefore any effort to save money through the use of an efficient cooking device would be welcome.KENGO’s view was of course much wider than the user’s view. KENGO promoted stoves because they help improve the quality of life in several ways:
[top] [end]Commercialization issuesFrom the very early days of the KCJ, a decision was made not to subsidize the production and dissemination of the stove. The promoters agreed that the private sector would take a leading role in the production and marketing of the stoves. What they did not agree upon at first, was whether this private sector was to be formal or informal. Indeed, the early KCJ stoves were produced by a formal private-sector entrepreneur, Jerri International.However, a little later, a decision was made to separate liner production from that of the cladding. The artisans who at that time were producing traditional stoves were trained to produce KCJ claddings, and then to assemble the complete stove. These artisans subsequently used their established channels to market and disseminate the stoves. Initially the price of the KCJ was very high, in the region of US$ 15 each. This attracted more entrepreneurs and soon many artisans were manufacturing the stoves. This brought about competition, which in turn lowered the price to US$ 3.00 per stove. Thus the profit motive played a key role in disseminating the KCJ. However, the KCJ introduced a new dimension, the ceramic liner. This could only be made by people who were already producing clay products, i.e. potters, who are generally rural-based. Thus to date, the metal part of the stove is made by informal-sector artisans at their workshops in the urban areas while the ceramic liner is produced by factories in the rural areas. The entrepreneurs who produce these liners transport them to the urban areas and sell them to the metal artisans. Occasionally, some metal artisans go out to look for the liners, but this is the exception rather than the rule. [top] [end]Sustainability and subsidiesCommercially, looking at the KCJ as an example, the dissemination of stoves is sustainable. Indeed, it is the commercial interests that have kept the KCJ on the market. Institutionally, the dissemination of stoves is not sustainable, it must be subsidized, by donor or government funds. Thus those institutions which carried out the training of artisans, and conducted public education campaigns and demonstrations, depended on doner or government funds. It is important to stress that institutions like NGOs and government agencies are important in disseminating stoves. These institutions can advertise the stoves without any profit motive. As a rule KCJ manufacturers do not advertise the stove, because they fear that other entrepreneurs would benefit from the sales resulting from the advertising.[top] [end]Credit systemsThe whole area of credit was avoided by the stove promoters, expecially after a few entrepreneurs disappeared with their loans when the system was tried out on a pilot basis. To be sure, small scale informal sector manufacturers in Kenya do not have a culture of servicing loans on a regular basis. Some have been known to use their loans for other uses, for example obtaining another wife.[top] [end]BenefitsThe benefits of the dissemination approach used in Kenya depend on various points of view. Thus the government regards the KCJ dissemination strategy as a source of employment for the artisans and so it is beneficial in that sense. The artisans are happy, because they earn a living by making and selling the KCJ. The customers are happy because they can get the improved stove from the same place where they have traditionally bought stoves. NGOs like KENGO are happy because production of the KCJ is steady and sustainability is ensured. The donors and other international agencies who invested their money and other resources in the development of the KCJ are satisfied that their efforts have paid dividends.[top] [end]Quality controlThere are several weaknesses in the way the KCJ is disseminated, the major one being quality control. With so many liner manufacturers, and even more cladding producers, quality control is a nightmare. As a result, KCJs come in all sorts of shapes and sizes. In addition, some liners crack on first use. KENGO has attempted to solve the quality problem by providing the liner makers with a standard liner mould; but even this can be made and supplied by anybody. KENGO has also tried to educate liner makers on correct clay mixtures. Again, while this has to a large extent succeeded, the profit motive has encouraged some liner makers to use substandard materials.[top] [end]Profit motiveThe second drawback of the private-sector dissemination approach is also related to the profit motive. Because many artisans are now making the KCJs, the profit margin has been eroded continuously. The artisans have therefore resorted to using thinner metal sheets for making claddings, the result being that the stoves buckle at the waist after being in use for only a short period.[top] [end]Author profileDominic Walubengo is a mechanical engineer and has ten years’ experience with renewable energy projects in many African countries. He is the programme manager of the Regional Wood Energy Programme for Africa (RWEPA) and an associate Director at Kenya Energy and Environment Organization (KENGO). He has written widely on renewable energy technologies.[v][e]
[top] [end]Stove Profiles, Stories and Burning Issues
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Page created:
20 August 2009; Last edited:
29 June 2010; Version: 2 | |||
Pagename: StoveImages:CommercializationOfImprovedStoves-TheCaseOfTheKenyaCeramicJiko(KCJ) @HEDON: FURA | |||
