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
US$ 4 million programme will support commercially viable companies to establish
new markets and accelerate access to clean energy for eighty seven thousand unserved and underserved households in Kenya.
Companies will be awarded funding of up to US$ 500,000 at contracting, with a
flexible reallocation system to allow those that exceed their milestone targets
to increase their funding cap to US$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 REACT RBF 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 Victoria Sabula, chief executive officer of AECF.
The REACT RBF programme will be rolled out in Kenya given the country has a
relatively advanced clean energy market compared to other Sub Saharan
countries. According to GOGLA
country brief as
at June 2019, four point one million people in Kenya live with improved energy
access , while three point five
million are still without power.
The programme which is funded by the
Swedish International Development Authority (Sida) will provide finance to companies in Kenya, hence giving them
incentive to reach more energy poor households and substantially increase their
access to clean energy. The RBF projects are expected to be implemented over a
two and a half 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.
