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 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 US$ 500,000 at contracting, with a flexible reallocation system to allow companies 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, 4.1M people in Kenya live with improved energy access and 3.5M still without power.
The programme funded by the Swedish International Development Authority (Sida) will provide funding to companies in Kenya incentivising 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.