- Organisation profiles

Development and Commercialisation of Improved Stoves in Rural West Kenya - The Upesi Project

Prepared by Intermediate Technology Development Group, October 2003 by Albert Waudo and Lydia Muchiri for Sparknet

Duration: 1996 to 2003

1.0 project summary

1.1 location

The 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.

1.2 Key statistics

Location: Five districts, Trans Nzoia, Mumias, Kisumu, Rachuonyo and Bondo
Scale: 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

1.3 Contact details

Intermediate 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

1.4 Replication potential

The 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.

2.0 funding

The European Union (EU), the Ashden Trust and the Department International Development -Civil Society Challenge Fund ((DFID -CSCF) provided for funding for the project.

3.0 background

More 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:

A Wood Burning Stoves Field Test Project aimed at testing five existing stove designs in five different zones of Kenya and providing guidelines for choosing an appropriate stove design for dissemination in rural areas of Kenya. One clear result of the project was that the GTZ/Maendeleo ya Wanawake's Maendeleo One-pot Stove was deemed by the users in all areas to be an acceptable and affordable stove, which met most of their criteria for an improved stove.
A Women Potter Training Project aimed at assisting women potters to increase the profitability of their business through improved product quality and diversification. This included introducing ceramic stoves and stove components as possible products. The Keyo Women Group were trained to produce Maendeleo stoves (also known as Upesi stoves), and their early signs of success became the pilot project for the Rural Stoves West Kenya Project.

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:

Adaptation and production of good quality Upesi stoves by the women's producer groups and local institutions.
Strengthening of the capacity of women's producer groups and distributors in the marketing of stoves.
Development of concrete commercialisation strategies to expand consumers' stove choices and increase incomes.
Establishment of a network of key actors in the energy saving technologies and marketing.
Broad dissemination of stove production and commercialisation techniques throughout East Africa and internationally.

The project had 4 objectives, which included:

To increase the number of good quality Upesi stoves in use in West Kenya
To articulate and test the sustainability of new approaches to the commercialisation of rural improved stoves
To improve the incomes for rural stove producers in West Kenya
To share project experiences within Kenya and East Africa.

4.0 project description

The 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.

4.1 Planned activities

The project's activities were envisaged to be undertaken in two main phases as outlined below.

Phase 1

Baseline data collection
Literature review on stove commercialisation
Identification of potential collaborators in West Kenya
Product development
Training of producers
Development of a marketing strategy
Identifying training needs for stockists (intermediaries)

Phase 2

Brand name marketing
Production of marketing material
Training of stockists and retailers
Test marketing approaches
Marketing and promotional activities including;

Demonstrations
Radio advertisement
Development of distribution channels
Facilitating linkages between intermediaries and producers

Promotion of kitchen improvements
User survey to establish end user perceptions of benefits and disadvantages of the Upesi stove, establish the lifespan of the stove and also to advise the next phase of the project, which addressed the commercialisation of the rural stoves.
Production of a manual on new stoves
Preparation of articles for publication
Development and implementation of an exit strategy

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

Objectives	Verifiable Indicators	Progress by Sept 2000
Increased number of quality stoves	Annual stove sales >25,000 end of 1998; and >25,000 in 2000.	About 16,000 stoves sold at an average of 4,000 annually
Commercialisation of stoves	2 new Upesi models designed and tested for commercialisation 80% of stoves sold through commercial channels by the year 2000 16 new individual producers of different models 20 stockists, 50 retailers, 50 promoters, 5 artisans and 1 distributor identified for commercialisation work by 2001.	Upesi Lira and Upesi Portable stoves are in production in addition to Upesi Liner 97% of stoves are sold commercially with 39.5% sold directly and 57.5% sold through the intermediaries There are 15 active producers out of 32 already trained. There are 3 stockists, 4 retailers, 13 promoters and no distributor
Marketing of stoves	10% of the people in each project district aware of Upesi stoves >50,000 stoves sold by 2001 70% of trained producers and promoters establish marketing strategies	Some 1.4% of rural households have bought stoves. A further 3% are aware of the stoves, but have not yet purchased. 15,862 Upesi stoves sold to rural households Previously all producers and intermediaries carried out promotional activities using ITDG promotional materials. In 1999 the intermediaries started designing and producing their own local promotion materials including paintings and signs boards
Improved living/working conditions to producers, intermediaries and users	20% reduction in use of fuelwood Daily time savings of 20 minutes/day available for other tasks 20% of stove users with improved kitchens	Fuelwood savings of up to 40% enabling households to cook 66% more food using the same quantity Savings of 20 minutes per day or 8 hours per month. Although the saving was found to be minimal, more time is available for other activities. Some 8% of kitchens had improvements by year 2000 (2000 Annual Review Report)
Networking and dissemination	2 district and regional associations active in stove production and marketing Increased inter-institutional collaboration in training, publicity and evaluations Increased information sharing between producers, intermediaries and users Increase in requests for information and development support 5 agencies adapting aspects of Upesi Project in their work with community groups	West Kenya Network (WESTNET was registered as a Community Based Organisation (CBO) and is active in stove production and marketing in the area. Partnerships have been formed on training and information sharing with partners in Tanzania. Over 20 meetings held to enable them share their experiences, during the project period. Requests have been received from Uganda, Ethiopia, Tanzania, Zimbabwe, Nigeria and Malawi and technical support given as required. Over 15 organisations in 4 countries implemented aspects of the project in their work with community groups
Sustainability	40% of the groups conduct promotional activities without subsidy from ITGD by 2001 70% of women groups continue with production by 2001 60% of the Upesi stoves in use by 2001	All groups have been subsidized as they use promotional materials provided by ITDG and also get stands and transport to the exhibition grounds 87% women groups that were trained are still in producing the stoves The output not clear, otherwise 97% of stoves surveyed by project team are in use

4.2 Cost of service

The 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:

Production costs including labour and raw materials
Storage costs
Breakages (Cost of broken stoves)
Promotion
Mark-up for profit
Optional installation fees
Transportation fees
Storage fees

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)

	Single installed Upesi	Portable Upesi	Upesi Lira
	Ksh	£	Ksh	£	Ksh	£
Average production cost per liner	60	0.55	60	0.55	100	0.91
Average mark up for profit (producer)	30	0.27	30	0.27	-
Transport and marketing costs	10	0.09	60	0.55	40	0.36
Installers fee	50	0.45	-		-
Cost of cladding, assembly, labour, raw materials and overheads	-		200	1.82	-
Mark up (seller)	40	0.36	150	1.36	60	0.55
Total price	190	1.73	500	4.55	200	1.82

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.

4.3 Delivery structure

The 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

Actor	Training Provided
Producers	Principles of stove design Identification and testing of suitable clay types for stove liner making Quality control and product development aimed at improving stove quality and increasing adoption Kiln construction training for trainers Firing techniques Finishing, drying and repair of stoves Market research Pricing and record keeping Establishing marketing chains (distribution networks) Energy saving techniques Group dynamics (how to work in groups)
Promoters and Artisans	Effective promotion Record keeping and pricing Upesi Lira production Cladding of portable Upesi Access to credit Production training Stove installation Kitchen improvement Effective selling Energy saving hints Safe packing
Stockists	Costing and pricing Record keeping Stove use and maintenance
Retailers	Costing and pricing Customer relations Linkage with communities

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.

4.4 Implementation progress

The 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.

5.0 project management

ITDG-EA was responsible for the overall management of the project

5.1 Local project personnel

Women organised themselves into groups and were able to produce the stoves after training from ITDG-EA

5.2 Project management team

Smail Khennas
Stephen Gitonga
Helen Owalla
Lydia Muchiri

6.0 lessons learnt

6.1 social

End-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.

6.2 economic

Affordability 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

	Single installed Upesi	Portable Upesi	Upesi Lira
	Ksh	£	Ksh	£	Ksh	£
Average mark up for profit (producer)	30	0.27	30	0.27	-
Installers fee	50	0.45	-		Portable stove-does not require installation
Mark up (seller)	40	0.36	150	1.36	60	0.55

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.

Ecological / environmental

Energy 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.

6.4 Implementation lessons

Rural improved stoves can be commercialised
An effective monitoring and evaluation system is essential for the commercialisation of rural stoves
Rural communities are capable of building their own extension services
Social connections are important in commercialisation
Commercial promoters network has potential for the dissemination of other development ideas and approaches
A lot of effort is required to provide production and marketing skills to the actors
Group dynamics calls for better training for living and working together to avoid frequent group break ups. Access to land resources for production materials as well as production space is crucial to sustainability for the production groups
Standardisation of production procedures ensures quality control and sustainability of a business product
Mobility is an important aspect of commercialisation

Innovative ideas from stoves marketing

Producers are responding to market demand through modifications that either improve the appeal or the efficiency of the stoves. In addition to portable stoves there are special institutional stoves as well as those used as ovens
Producers and intermediaries are developing innovative strategies to reach buyers.
The actors have acquired micro-enterprises as well as technical training in the commercialisation of rural stoves which they can extend to other products
Through the various training they have acquired confidence and self esteem and are now involved in development activities in their areas as change agents.

7.0 REFERENCES and DOCUMENTATION

Syagga 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

Pagename: :CommercialisationOfImprovedStovesInRuralWestKenya