The Africa Enterprise Challenge Fund (AECF) has launched a results-based financing programme aimed at unlocking new markets for clean energy companies in Kenya.
The $4 million programme will support commercially viable companies to establish new markets and accelerate access to clean energy for 87,000 unserved and underserved households in Kenya.
Companies will be awarded funding of up to $500,000 at contracting, with a flexible reallocation system to allow companies that exceed their milestone targets to increase their funding ceiling to $1 million.
“Off-grid energy sector continues to require investment if we are to make notable progress in improving access to affordable and clean energy. We are excited to be launching the financing programme through which we seek to provide results-based incentives for companies that are increasing access for unserved and underserved communities. Energy access remains critical for a sustainable post Covid-19 recovery and we see REACT RBF helping companies to withstand the Covid-19 effects, recover, and come out stronger on the other side,” said chief executive officer of AECF Victoria Sabula.
The REACT RBF programme will be rolled out in Kenya because the country has a relatively advanced clean energy market compared to other Sub-Saharan countries.
According to GOGLA country brief as at June 2019, 4.1 million people in Kenya live with improved energy access and 3.5 million still without power.
The programme funded by the Swedish International Development Authority (Sida) will provide funding to companies in Kenya to incentivise them to reach more energy-poor households and substantially increase their access to clean energy.
The RBF projects are expected to be implemented over a 2.5-year period running from July 2021 to December 2023.
The AECF continues to be a leader in supporting the scaling up of clean energy companies in Africa, particularly in Kenya, to reach off-grid communities and substantially increase clean energy access for poor households.
Improvement of access to reliable and affordable energy is critical for the reduction of poverty and enhancement of quality of life for remote and low-income communities.
- A Tell report