Equity Bank Launches Affordable Financing for Electric Cooking In Uganda

Equity Bank Uganda in partnership with UKAID and the ministry of Energy has today launched affordable financing for eCooking products and technologies in Uganda.

Dubbed the Modern Energy Cooking Services (MECS) Trust Fund, it aims at accelerating the adoption of electric cooking solutions across the country.

The Fund was officially launched during a Stakeholder Information Session held at Four Points by Sheraton Kampala Hotel. The event brought together government officials, development partners, private sector players and electric cooking companies to explore practical strategies for scaling clean and efficient cooking technologies in Uganda.

“Today we have launched e-cooking financing to support Ugandan businesses to operate more efficiently and competitively. We recognise that electricity costs are a concern, but affordability is about the total cost of cooking, not electricity alone,” said Catherine Psomgen, Equity Bank Uganda Director Public Sector and Social Investments

“By managing the MECS Trust Fund, we are providing businesses with the financing they need to grow while helping households move to cleaner, safer and more affordable cooking methods. This partnership demonstrates how financial institutions can collaborate with government and development partners to create sustainable impact,” added Psomgen.

In his address, the Minister of State for Energy, Okaasai Opolot noted the high cost of acquiring eCooking equipment and the limited numbers in the market.

“The main challenges that have been experienced while implementing eCooking in Uganda are unavailability of the eCooking technology and funding to facilitate importation of the eCooking appliances. This makes the launching of the Trust Fund timely, as it provides solutions by making funding available for the suppliers,” said Okaasai

UKAID Climate and Energy Policy office Lydia Nandawula said the financing reflects a long-term UK commitment to Uganda towards its clean cooking transition not just as a climate priority but as a development, health, gender and economic opportunity.

“It addresses a specific bottleneck that many of you have consistently raise such as access to short term working capital that allows viable eCooking business to grow, stock appliances and meet demand in  a commercial sustainable way,” said Nandawula.

The MECS Trust Fund is financed by the British High Commission through UKAID under the Foreign, Commonwealth and Development Office (FCDO). And being implemented by Equity Bank Uganda in partnership with the Ministry of Energy and Mineral Development.

The Fund targets Households, SMEs, Micro businesses, importers, manufacturers and institutions under the government approved programs. Households, Businesses and institutions can borrow from UGX10m to over UGX500 million.

As the implementing financial partner, Equity Bank Uganda will manage the Fund and provide financing to eligible eCooking companies. The bank will extend working capital and bridge financing to help these businesses expand operations, strengthen supply chains and make modern electric cooking appliances more accessible and affordable to households nationwide.

This initiative directly supports Uganda’s National eCooking Strategy and reflects a broader commitment to environmental protection, improved livelihoods and gender equality.

By supporting companies that offer electric cooking technologies, the Fund aims to reduce reliance on traditional fuels such as charcoal and firewood, while promoting safer, cleaner and more cost-effective alternatives.

The MECS Programme itself is an eleven-year research and innovation initiative funded by the UK’s Foreign, Commonwealth and Development Office. Since 2019, the programme has played a key role in strengthening Uganda’s electric cooking ecosystem. Research under the initiative indicates that electric cooking is not only practical and cost-effective but is also increasingly preferred by consumers where access is available.

Uganda has taken significant policy steps to create a supportive environment for clean cooking. In 2021, the Electricity Regulatory Authority introduced a dedicated cooking electricity tariff to encourage uptake.

This was followed by the launch of the National eCooking Strategy in 2023, which outlines measures for supply chain development, grid expansion, public awareness and integration of carbon financing. At COP28, Uganda reaffirmed its commitment to scaling electric cooking, setting a target of 18 percent adoption by 2030.

In the long term, the MECS Trust Fund is expected to increase awareness among electric cooking companies, strengthen public-private partnerships and improve access to affordable financing. The broader impact includes reduced carbon emissions, preservation of natural resources and improved public health outcomes.