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Stove manufacturer Burn bags Sh646m for clean cooking drive
Founder and CEO of Burn Manufacturing Peter Scott which manufactures Jikokoa, an energy saving Charcoal stove, during an interview at the company in Ruiru on August 13, 2020.
Cooking stove manufacturer Burn has received a $5 million (Sh646 million) funding from a European Union (EU)-backed investment facility, in a financing set to accelerate the production and distribution of its electric cookers to at least 100,000 new users through a hire purchase selling model.
The Kenyan-based US firm distributes the clean cooking stoves to consumers through the pay-as-you-cook (PAYC) model, integrated directly with mobile money payment systems which allows users to pay small amounts via their mobile phones, and ultimately achieve full ownership within a year.
The induction stoves, which employ a type of cooktop that heats cookware directly using magnetic induction rather than through the traditional heating element of a flame, are dubbed ECOA Induction Cookers (ECOA IDC), and are an advancement of the legacy product brand name Jikokoa.
“The total price is Sh24,285, payable over 93 weeks with a deposit of Sh1,500,” a sales agent at the firm told the Business Daily in a text response.
The new funding investment adds to the $15 million (Sh1.9 billion) that the Burn received from the European Investment Bank last October to enhance its ongoing expansion.
“Kenya’s electricity grid is over 90 percent renewable, yet more than 15 million households still cook with polluting fuels. This investment helps close that gap,” said Burn founder and CEO Peter Scott.
Headquartered in Nairobi, the firm which unveiled its full manufacturing facility in Kenya in 2014 operates across 11 countries across the African continent.
A spot check on the company’s website indicates that it has a monthly production capacity of 450,000 stoves, and has, since inception, distributed over five million clean cooking stoves across Africa.
EDFI, the firm managing the investment facility on EU’s behalf, said the funding will strengthen local economies by creating manufacturing and distribution jobs across the value chains.
“Our investment underscores our commitment to driving private sector-led impact and accelerating the green transition in emerging markets,” said EDFI CEO Rodrigo Madrazo.
In October 2023, Burn had revealed that it had issued a $10 million (Sh1.29 billion at current conversion rates) green bond, whose proceeds would be used in enhancing its manufacturing capacity in Kenya, as well as launch a new one in Lagos, Nigeria.
The bond issuance was supported by DRY Associates Limited acting as the placement agent with FSD Africa, a specialist development agency funded by UK International Development, providing technical input on the bond framework.
