Two new portfolio companies in Kenya scaling up access to clean cooking

The agreements have been signed with ACE Hybrid Energy Kenya Limited and Better Cooking Company Limited, which trades under the name EcoSafi. The companies started their operations in Kenya in 2019 and 2020 respectively. MCFA will provide up to EUR 1.3 million to ACE Hybrid Energy and up to EUR 1.5 million to EcoSafi in results-based financing. This is expected to mobilise additional co-financing, at least doubling the total capital invested in clean cooking solutions by both companies by the end of project implementation.

ACE Hybrid Energy Kenya will sell its own-designed ACE One gasifier stoves to customers on Kenya’s Eastern coast. With the results-based financing provided by MCFA, the company aims to sell 13,000 stoves, which will provide up to 65,000 people in Kenya with clean cooking solutions by the end of 2028.

“The MCFA programme has singularly changed the funding landscape for the clean cooking sector, and the specific focus on future-proof hardware and data-driven approaches is immensely welcome. ACE is delighted to be able to work together with the MCFA team, and we look forward to rewarding the confidence shown in us with results,” says Ruben Walker, founder and CEO at ACE Hybrid Energy Kenya.

Since 2019, ACE has been selling its ACE One gasifier stoves mainly in West Pokot, a rural district close to the Ugandan border, but with MCFA financing, the company is now planning to expand to the counties of Mombasa, Kwale and Kilifi and to establish an assembly plant in the area. ACE One is a solar/biomass hybrid energy system, a forced-draft gasifier stove that can burn any type of solid biomass cleanly. The stove also includes PAYGo functionality and internet of things usage monitoring. Stove usage is monitored through fan hours and USB usage data collection, which is periodically retrieved through data syncing.

“ACE Hybrid Energy Kenya is an innovative company offering clean cooking stoves that can be used in off-grid settings. We are looking forward to supporting the company to expand its business operations and, together with our three other portfolio companies in Kenya, accelerate access to modern energy cooking solutions across the country,” says Heli Sinkko, Programme Manager at Nefco.

Better Cooking Company Limited, trading as EcoSafi, will provide Kenyans with efficient cooking stoves of their own design and a regular supply of pellet fuel made from agricultural waste. The company also has operations in Malawi, Uganda and Zambia. With the results-based financing provided by MCFA, the company aims to establish 25,000 sustainable clean cooking services in Kenya. This will provide up to 125,000 people in Kenya with access to clean cooking solutions by the end of 2028.

“EcoSafi provides an integrated stove, fuel, and technology solution. We are very excited to expand our business in Kenya and provide more customers with clean and efficient biomass stoves with the support of MCFA. Consumers deserve a clean, affordable, and sustainable alternative to cooking with charcoal,” comments Tom Prices, CEO at EcoSafi in Kenya.

The new BetterStove, to be supported through MCFA, is a forced-draft pellet stove of the company’s own design. The pellets the company provides are manufactured from a sustainable raw material called bagasse, a dry, pulpy, fibrous material that remains after crushing sugarcane to extract its juice. The resulting fuel is around half the cost of charcoal, which is currently still widely used. The stove can be run for up to 2.5 hours on a single batch of fuel. The stove is also PayGo enabled, using Internet of Things technology to track and report usage, to enable accurate tracking of climate impacts.

“We are excited to be announcing our partnership with Better Cooking to support the company in its expansion and accelerate access to clean cooking solutions in the western part of the country,” comments Aliona Fomenco, Investment Manager at Nefco.