SunFunder announces the launch of new $30m Kenyan government solar debt fund
Updated: Jun 27, 2019
We are proud to be managing a new $30m debt fund for Kenya’s Ministry of Energy as part of the Kenya Off-Grid Solar Access Project (KOSAP).
The project seeks to increase access to modern and clean energy in Kenya, with a focus on 14 target counties. KOSAP debt financing and $12m of results-based financing (RBF) grants are available to companies that distribute off-grid solar systems to households, enterprises and communities in these areas.
Because of their remote locations and low-population density, these 14 counties still lack access to infrastructure such as electricity, water and roads. The World Bank estimates that 1.2m households are unelectrified in the target regions: through its implementing partners SNV and SunFunder, KOSAP aims to finance the deployment of solar home systems to 250,000 of these households, and clean cook stoves to 150,000 households, thereby improving energy access for over a million people.
“SunFunder’s experience and Nairobi-based team positions it to successfully work with companies delivering off-grid solar energy to underserved households,” commented Audrey Desiderato, SunFunder co-founder and COO. “We are honored for our SNV-SunFunder team to have been selected by MOE, through a competitive process, to support Kenya’s drive for universal access to energy.”
The KOSAP RBF funds offer both market entry facilitation funds and results-based incentives up to 2023, while the debt fund offers 6 to 12-month inventory loans and 1 to 3-year receivables financing. Companies can find eligibility criteria and learn about the application process through the KOSAP website: www.kosap-fm.org or write to firstname.lastname@example.org.
“We are thrilled to be partnering with SunFunder to offer a complete financing package for off-grid solar in Kenya,” said Martijn Veen, Global Energy Coordinator for SNV. “The combination of financial instruments can make a dramatic imprint on delivering energy access in new regions.”
The KOSAP facilities for solar and clean cookstoves, totaling $47m, are funded by Kenya’s Ministry of Energy, with financing support from the World Bank. They comprise a solar debt facility ($30m), solar RBF grants ($12m) as well as $5m for clean cooking RBF. Our partner SNV Netherlands Development Organization is responsible for the KOSAP facilities overall, and manages both RBF programs, while SunFunder is managing the solar debt facility.
The partnership between SunFunder and SNV will create a synergistic relationship that uses the expertise of both entities to achieve KOSAP’s objectives. The project is a critical plank of the National Electrification Strategy that will ensure universal access to electricity by 2022 and a key aspect of Vision 2030, the country’s long-term development plan.
For the full press release, please see here