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Equity Bank Boosts Mubende Stoves’ Kakande to a Shs450m Stove Business

by Walakira John
4 months ago
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Equity Bank Boosts Mubende Stoves’ Kakande to a Shs450m Stove Business
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By Mulengera Reporters

When Osward Kakande borrowed Shs1.8 million from a friend in 2017 to make his first batch of energy-saving cookstoves, he was simply trying to solve a problem that had affected his family for years.

His mother had endured persistent coughs and headaches caused by smoke from traditional cooking stoves, a reality shared by millions of Ugandan households that rely on charcoal and firewood for daily cooking. Determined to find a cleaner and more affordable solution, Kakande set out to manufacture improved cookstoves from a modest wooden structure on a small plot of land in Mubende.

Nearly a decade later, that small venture has evolved into Mubende Stoves, a clean cooking enterprise valued at more than Shs450 million, employing 48 people and supplying energy-efficient stoves to households and businesses across central and western Uganda.

While determination, innovation and persistence laid the foundation for the company’s growth, Kakande says strategic partnerships—including support from Equity Bank Uganda through its Results-Based Financing (RBF) programme implemented in partnership with EnDev GIZ—have played a critical role in helping the business scale to the next level.

Today, Mubende Stoves stands as one of the enterprises demonstrating how access to innovative financing and market-driven partnerships can enable local businesses to expand while contributing to Uganda’s transition to cleaner energy.

Humble beginnings

Kakande’s entrepreneurial journey was born out of necessity rather than ambition.

Growing up in a household that depended on traditional cooking methods, he witnessed firsthand the health challenges associated with indoor air pollution.

“My mother was always coughing because of the smoke,” he recalls. “I wanted to find a solution that would protect families while helping them spend less on fuel.”

With limited resources, Kakande borrowed Shs1.8 million from a friend, Keith, and began manufacturing improved cookstoves under a simple wooden shelter on a 20-by-50-foot plot in Mubende.

The first production run yielded only 28 stoves.

“There was no profit in the beginning,” he says. “Every shilling we earned went back into buying raw materials.”

Instead of drawing income from the business, Kakande reinvested every sale into expanding production capacity.

His breakthrough came during the second production cycle.

After manufacturing 120 stoves, the business generated a profit of Shs3,000 on each stove, proving there was a viable market for cleaner cooking technologies.

That moment gave him confidence that the business could survive.

Over the following years, Mubende Stoves steadily expanded through disciplined reinvestment, customer education and continuous product improvement.

Addressing Uganda’s clean cooking challenge

Uganda remains one of Africa’s most biomass-dependent countries, with the majority of households relying on charcoal and firewood for cooking.

Traditional cooking methods consume large quantities of fuel while exposing families to harmful smoke linked to respiratory illnesses.

Recognizing this challenge, Mubende Stoves developed energy-efficient stoves designed to reduce both fuel consumption and indoor air pollution.

The stoves combine clay, sawdust, burnt brick particles and mica enclosed within durable metal casings.

The technology enables the stoves to retain heat longer, cook faster and consume significantly less charcoal or firewood than conventional cooking methods.

For Kakande, however, the business has always been about more than manufacturing.

“It was never just about selling stoves,” he says.

“It was about helping families live healthier lives while reducing their fuel costs.”

Building a sustainable enterprise

For several years, Mubende Stoves operated as a Community-Based Organisation (CBO), focusing primarily on raising awareness about clean cooking technologies.

As demand increased, Kakande realised that long-term sustainability required stronger corporate structures.

Registering Mubende Stoves as a limited company transformed the business.

The new structure enabled the company to strengthen compliance systems, build reliable supply chains and qualify for larger commercial opportunities that had previously been beyond reach.

That decision soon began paying off.

In 2024, Mubende Stoves secured one of its biggest contracts after partnering with GIZ to supply 10,000 portable cookstoves and 5,000 wood stoves.

Successfully delivering the order significantly strengthened the company’s reputation within Uganda’s clean energy sector.

The contract also positioned Mubende Stoves for even bigger opportunities.

Equity Bank partnership accelerates growth

The company’s next major milestone came in 2025 when it was selected to participate in the Results-Based Financing (RBF) programme implemented by Equity Bank Uganda in partnership with EnDev GIZ.

Unlike conventional financing, Results-Based Financing rewards suppliers after independently verified results have been achieved.

The approach encourages businesses to prioritise product quality, customer satisfaction and measurable impact while reducing financial barriers for end users.

For Mubende Stoves, the programme became a major catalyst for expansion.

The financing enabled the company to supply Productive Use (PU) stoves to businesses at subsidised prices, making energy-efficient cooking technologies accessible to restaurants, food vendors and other commercial users who previously found the equipment too expensive.

The programme also strengthened the company’s cash flow, enabling it to increase production and expand its customer base.

Kakande says the partnership has been instrumental in the company’s recent growth.

“The support from partners such as Equity Bank Uganda and EnDev GIZ has been instrumental in our growth,” he says.

“We need more technical and financial support to help local companies scale and reach more communities.”

Transforming businesses

The impact of Mubende Stoves is perhaps best reflected in the experiences of its customers.

In Kasambya Town Council, restaurant owner Sandra Nakabugo says adopting one of the company’s eco-stoves dramatically reduced her operating expenses.

Before switching, she spent about Shs15,000 every day on charcoal, in addition to Shs20,000 every four days on firewood.

Today, her daily fuel bill averages only Shs4,000.

“These stoves accommodate large saucepans, are hygienic and very cost-effective,” she says.

The savings have allowed her to expand her restaurant business while investing additional income in poultry farming.

For dairy trader Josephine Mukakibibi, the benefits have been equally significant.

She says the sack of charcoal that previously lasted just one week now serves her business for nearly three weeks.

The reduced expenditure has enabled her to educate her five children and construct a family home.

Stories such as these have driven increasing demand for Mubende Stoves across several districts.

Creating jobs

Business growth has translated directly into employment.

From just three workers during its early years, Mubende Stoves now employs 48 people, many of them young people and single mothers who often struggle to secure stable employment.

“We want our growth to create opportunities for others,” Kakande says.

The company now supplies customers in Mubende, Fort Portal, Hoima, Masindi and neighbouring districts, with plans to expand even further.

Beyond business

Despite the company’s commercial success, Kakande continues to invest in community development.

He established Human Kind, a community-based organization supporting people living with HIV.

Among its initiatives is the establishment of a dedicated kitchen facility aimed at improving nutrition and welfare for vulnerable members of the community.

His entrepreneurial success has also enabled him to diversify into transportation, brick making and hospitality.

Even so, clean cooking remains at the centre of his long-term vision.

Looking ahead

As Mubende Stoves approaches its tenth anniversary, the company is preparing for another phase of expansion.

Plans are underway to invest in modern manufacturing equipment that will increase production capacity and improve efficiency.

The business is also exploring briquette production as part of efforts to promote sustainable cooking fuels.

At the same time, Mubende Stoves is pursuing opportunities within the global carbon market.

The company hopes to generate more than 40,000 carbon credits under the internationally recognized Gold Standard certification framework, creating an additional revenue stream while contributing to global climate action.

For Kakande, the journey from a borrowed Shs1.8 million to a Shs450 million enterprise demonstrates what is possible when innovation is matched with resilience, market demand and the right partnerships.

His story also reflects a broader trend in Uganda’s enterprise sector, where institutions such as Equity Bank Uganda are helping businesses move beyond survival by providing financing models that reward performance, encourage innovation and enable entrepreneurs to scale solutions with lasting social and environmental impact.

As demand for clean cooking technologies continues to grow, Kakande believes local enterprises have an increasingly important role to play in improving public health, protecting the environment and creating jobs.

With stronger partnerships, expanded financing and continued investment in innovation, he says, many more Ugandan businesses can replicate the journey that transformed a small wooden workshop in Mubende into one of the country’s emerging clean energy enterprises. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com). 

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