Support Mwangaza Light in empowering Kenyan households: Invest in clean cookstoves and solar home systems and help save 102 tons of CO2 annually. Assist families in saving time and costs, and break the cycle of energy poverty in rural communities!
Video from September 2024. To enable subtitles, please click the CC button in the lower right corner of the screen.
The acquisition of this capital investment involves significant risks and may lead to the complete loss of the invested capital.
UN Sustainable Development Goals (SDGs)
Overview of the Capital Investment
Project intent
Mwangaza Light Limited (Mwangaza Light), a Kenyan faith-based social enterprise, wants to use the loan for two primary goals. Part of the loan will be allocated to importing energy-efficient induction stoves and electric pressure cookers, which will be distributed to urban and peri-urban households to replace charcoal stoves. This aligns with Mwangaza Light's strategic focus on addressing the growing demand for electric cooking solutions in the urban on-grid market. Through its close collaboration with churches, the enterprise has gained strong access to this market, with urban congregations specifically requesting affordable, clean cooking alternatives. Another portion of the loan will be used to import solar home systems for distribution to low-income households in rural areas. This includes serving 50,000 existing customers in central Kenya who have already transitioned from traditional open fireplaces to rocket stoves. These households are targeted because they have already shown a willingness to adopt cleaner energy solutions, making them more likely to embrace solar home systems as the next step. These efforts will help Mwangaza Light continue its mission of journeying off-grid households up the clean energy ladder.
Social & Economic Impact
The funding will have substantial social and economic impact in saving money and time for the cookstove customers. Replacing charcoal stoves with electric cooking devices results in up to 154.23€ in financial savings and replacing them with biomass stoves in up to 159.36€ financial savings for one customer per year, which is a large saving in relation to the average annual income in Kenya. Additionally, the cooking alternatives result in 208 hours of time saved per year in cooking-related activities for a cookstove customer. This allows families to redirect resources and time toward education and income-generating activities. The "Green Churches"- Movement initiated by Mwangaza Light has fostered inter-church collaboration and environmental stewardship, notably within the Anglican Church of Kenya through the "Green Anglicans"-Movement. Additionally, the organization is pioneering eco-theology in Kenya, promoting a deeper understanding of the relationship between religion and nature. These efforts are empowering communities to engage in climate action and creating lasting change toward sustainability.
Climate protection
Mwangaza Light’s project significantly contributes to climate protection by saving up to 102 tons of CO2 emissions per year. By replacing traditional cooking methods with electric cookstoves and distributing solar home systems, the project reduces greenhouse gas emissions and combats deforestation.
Established, sustainable company
Mwangaza Light is a women-led, faith-based social enterprise founded by two women in 2014 to combat energy poverty in rural Kenya by providing access to solar energy and clean cooking solutions. Partnering with churches, the organization developed the "Green Churches" model, which promotes environmental stewardship, energy access, and climate action. This initiative leverages church infrastructure to raise awareness about clean energy and tree planting, helping to create the first church-based environmental movement in Africa. Mwangaza Light collaborates nationally with the Anglican Church of Kenya, co-branding clean cookstoves to drive adoption as churches are the most trusted institutions in East Africa and have extensive infrastructure. Locally, the "Green Churches" movement encourages clergy to promote environmental care, clean energy use, and income-generating tree nurseries. A 2021 survey showed 98% of Mwangaza Light’s customers transitioned from open fires to improved cookstoves, with high customer satisfaction. Mwangaza Light has also established seven tree nurseries with a capacity for over 100,000 trees, enhancing local ecosystems.
Risk reduction measures
For the crowdfunding campaign on bettervest, a special purpose vehicle called BETTERVEST INVESTMENT LTD, based in Kenya, was established to act as the borrower in this project. It forwards the collected capital as a secured loan to the project owner in Kenya, Mwangaza Light and does not engage in any other business activities during the entire term of the loan. Shareholders and managing directors of BETTERVEST INVESTMENT LTD are independent of Mwangaza Light. In addition, assets worth 150% of the loan and interest amount, such as the solar home systems and cookers to be financed, as well as existing contracts and goods, are pledged to the Kenyan special purpose vehicle until the loan has been repaid in full. This is done by official entry in the Kenyan register.
Project Description
In Kenya, approximately 75% of the population still relies on solid fuels such as firewood, charcoal, and kerosene for cooking, especially in rural areas. This reliance on traditional fuels contributes to severe indoor air pollution, which leads to an estimated 21,560 deaths annually due to respiratory illnesses caused by smoke exposure. Furthermore, the use of charcoal and firewood is a significant driver of deforestation and environmental degradation.
When it comes to electricity, around 70% of the population has access to electricity, but this figure drops to 30% in rural areas. Most rural households are off-grid, meaning they lack reliable access to electricity for basic needs such as lighting and cooking. This gap in clean energy access highlights the urgent need for sustainable solutions that can reduce environmental harm and improve health outcomes across the country.
Mwangaza Light, a Kenyan faith-based social enterprise, is addressing these challenges by providing clean, affordable energy solutions for underserved communities.
Mwangaza Light plans to use the loan for two primary goals. Part of the loan will be allocated to importing induction stoves and electric pressure cookers, aimed at replacing charcoal stoves in urban and peri-urban households. This aligns with Mwangaza Light’s strategic focus on addressing the growing demand for electric cooking solutions in the urban on-grid market. Through its close collaboration with churches, the enterprise has gained strong access to this market, with urban congregations specifically requesting affordable, clean cooking alternatives.
Another portion of the loan will be used to import solar home systems for distribution to low-income households in rural areas. This includes serving 50,000 existing customers in central Kenya who have already transitioned from traditional open fireplaces to rocket stoves. These households are targeted because they have already shown a willingness to adopt cleaner energy solutions, making them more likely to embrace solar home systems as the next step.
These efforts will help Mwangaza Light continue its mission of guiding off-grid households up the clean energy ladder.
Through its business model, Mwangaza Light contributes to five of the UN’s Sustainable Development Goals (SDGs):
By providing access to affordable and reliable clean cooking solutions and solar energy, Mwangaza Light empowers low-income households, especially in rural and peri-urban areas, to transition from harmful traditional cooking methods like charcoal and wood to modern electric cooking and solar-powered systems (Goal 7). This shift reduces indoor air pollution and improves health, while also lowering household energy costs, making clean energy more accessible to underserved communities.
Mwangaza Light’s solutions directly improve public health (Goal 3), as its customers move away from cooking over open fires, which are responsible for significant indoor air pollution and related respiratory diseases. The adoption of improved cookstoves and electric cooking technology contributes to better health outcomes, particularly for women and children, who are most affected by the harmful smoke.
The company’s focus on women-led operations and its partnership with churches promote gender equality (Goal 5). With over 75% of its staff and agents being women, Mwangaza Light enhances women’s economic participation and leadership at all organizational levels. Furthermore, 65% of the customers are women and benefit from better health, less cooking time, and income saving from using less cooking fuel.
Mwangaza Light’s “Green Churches” model addresses both environmental and social challenges (Goal 13). By integrating environmental stewardship into church activities and promoting clean energy, the company enables communities to reduce CO2 emissions, transition away from charcoal, and engage in climate action, such as tree planting initiatives. This not only mitigates climate change but also contributes to local livelihoods and food security.
Finally, the organization helps alleviate poverty (Goal 1) by providing sustainable, low-cost energy solutions that reduce expenses on fuel and electricity, freeing up household income for other essential needs. Its distribution of solar home systems and improved cookstoves empowers communities to break the cycle of energy poverty and embrace cleaner, healthier alternatives.
Mwangaza Light’s project contributes directly to climate protection by saving up to 102 tons of CO2 emissions per year through its clean cooking solutions. By replacing traditional cooking methods using firewood with electric cookstoves and biomass stoves, the project reduces the harmful greenhouse gases typically generated by burning solid fuels. This shift not only lowers carbon emissions but also helps combat deforestation, preserving ecosystems and biodiversity.
The investment risks associated with the subordinated loan are described in detail in the risk information. With regard to the assessment and limitation of risks for investors, the issuer draws attention to the following special features in the design of the project:
For the crowdfunding campaign on bettervest, a special purpose vehicle called BETTERVEST INVESTMENT LTD, based in Germany, was established to act as the borrower in this project. It forwards the collected capital as a secured loan to the project owner in Kenya, Mwangaza Light and does not engage in any other business activities during the entire term of the loan. Shareholders and managing directors of BETTERVEST INVESTMENT LTD are independent of Mwangaza Light. In contrast to a German special purpose vehicle, the special purpose vehicle based in Kenya can act as a borrower for several projects. However, there are no changes to the contracts and the risk assessment compared to a German special purpose vehicle.
In addition, assets worth 150% of the loan and interest amount, such as the solar home systems and cookers to be financed, as well as existing contracts and goods, are pledged to the Kenyan special purpose vehicle until the loan has been repaid in full. This is done by official entry in the Kenyan register.
The financing plan contains the total projected cash flows for Mwangaza Light covering the receipt, initial utilisation and repayment of the loans.
Investment needs
The loan of €100,000 is intended to finance the purchase of sustainable cookers and solar home systems for sale to private households.
The term of the loan is 3 years and has an annual interest rate of up to 6.8% p.a. for the crowd investors. The funding threshold for this project is 50,000 euros. If the funding target is not reached, but at least the funding threshold is, the project owner will still use the investor funds to a small extent to purchase the above-mentioned products.
Repayment
The loan is repaid from liquid funds that Mwangaza Light generates in the course of its business activities as income from selling clean cooking solutions and solar home systems.
Mwangaza Light is a women-led social enterprise partnering with churches for a greener tomorrow through universal energy access, women empowerment and climate action. Our innovative business model - Green Churches Kenya - fosters a church-based environmental movement driving the adoption of clean energy and sustainable living in Kenya. We build last mile distribution of clean energy solutions into church infrastructure to reach rural and urban populations. This is an investment in modern cooking, gender equality, and tree growing.
The borrower and country profile
BETTERVEST INVESTMENT LTD P.O BOX 2087 SARIT CENTRE Kenia
Mwangaza Light
Lantana Road,
Next to Capital West,
Nairobi, Kenya
SPV
BETTERVEST INVESTMENT LTD: Issuer and borrower
The special purpose entity BETTERVEST INVESTMENT LTD is based in Kenya and acts as issuer and borrower in this project. The task of this special purpose company is to forward the collected money of the crowd investors as project loans to the local project owners Mwangaza Light. BETTERVEST INVESTMENT LTD does not carry out any other business activities during the entire term of the loan. Shareholders and directors of BETTERVEST INVESTMENT LTD are independent from the project owners. In contrast to a German special purpose vehicle, the special purpose vehicle based in Kenya can act as a borrower for several projects. However, there are no changes to the contracts and the risk assessment compared to a German special purpose vehicle.
Mwangaza Light
Mwangaza Light is a faith-based social enterprise that partners with churches to enhance energy access, gender equality, and climate action in Kenya. Founded by two women in 2014, the organization was created to alleviate energy poverty among rural, low-income households by providing better access to solar energy and clean cooking solutions. Mwangaza Light is a women-led enterprise with 25 full-time staff and over 50 commission agents, with women making up more than 75% of the organization at all levels.
Recognizing that churches are among the most trusted institutions in East Africa and possess extensive infrastructure, Mwangaza Light developed the “Green Churches” model. This model is designed to reach both urban and rural populations, men and women alike, at national and grassroots levels. The “Green Churches” initiative serves two key purposes: it empowers churches to take on environmental stewardship, promote energy access, and lead climate action in Kenya; and it integrates last-mile distribution of clean energy solutions into church infrastructure. Clergy raise awareness “from the pulpit,” while laypeople provide access to information, products, and services for congregants and the broader community. Additionally, Green Churches support tree planting initiatives, contributing to livelihoods, food security, and water security as part of their climate action efforts.
Mwangaza Light has laid the foundation for an environmental movement in Kenya. At the national level, the enterprise collaborates closely with the Anglican Church of Kenya, co-branding cookstoves to foster clergy ownership and promotion of clean energy technologies. Locally, Green Churches have established ecumenical collaborations, shifting the clergy’s mindset to “talk green” (promote Creation Care/environmental protection), “go green” (encourage the adoption of clean energy to reduce CO2 emissions), and “grow green” (run tree nurseries for income generation). Inspired by similar movements in Europe, this initiative marks Africa’s first church-based environmental movement.
An independent customer survey conducted by 60 Decibels in 2021 revealed that 98% of Mwangaza Light’s cookstove customers successfully transitioned from open fireplaces to improved cookstoves. The survey concluded that “Mwangaza Light is doing an excellent job reaching an underserved market with high customer satisfaction.”
When making investment decisions, it is advisable to find out in advance about the project location, in particular the country in which the project will be realised. To gain an overview, the following indicators provide a helpful starting point for independent research. The information was retrieved from the relevant data sources in October 2024 and is published without guarantee.
INDICATOR | ASSESSMENT OF KENYA |
---|---|
Euler Hermes Ranking | Euler Hermes has assessed the risk of non-payment by Kenyan companies as “sensitive risk” and rated it with a C on a scale from AA to D (Source: Euler Hermes Country Risk Map). |
OECD Classification | The OECD classifies the overall country risk of Kenya on a scale from 0 (low risk) to 7 (high risk) as 7 (Source: OECD Ranking 2024). |
Corruption Index (Transparency International) | The corruption index published by Transparency International, measured on a scale of 0 (high level of corruption) to 100 (no perceived corruption), stands at 31 for Kenya (Source: Transparency International 2023). |
Commercial Bank Prime Lending Rate | The Commercial Bank Prime Lending Rate indicates the average annualized interest rates that local commercial banks charge their most creditworthy customers for new loans in the local currency. In Kenya, the Commercial Bank Prime Lending Rate was 16.45% in April 2024 (Source: Trading Economics 2024). |
Creditworthiness (Moody’s) | Moody’s has rated the creditworthiness of Kenyan government bonds at Caa1 on a scale from AAA to D, classifying them as negative (Source: Trading Economics 2024). |
Foreign Exchange Market (Bundesbank) | In the last five years, the exchange rate for the euro in Kenya has overall increased; five years ago, the price was 113.53 Kenyan Shillings, one year ago it was 156.00, and today the price is 144.24 Kenyan Shillings (Source: Bundesbank 2024). |
Key Data
Borrower | BETTERVEST INVESTMENT LTD |
Anlagetyp | Subordinated Loan |
Investment Type | EUR 100.000 |
Loan Volume | 3 Years |
Return | up to 6,8 % p.a. |
Repayment and Interest Payment | Annuity |