Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Spur for Kenya energy developers

NAIROBI, Kenya, Oct 23 – Private sector energy developers have received a shot in the arm with the establishment of a fund to finance projects in the country.

The African Enterprise Challenge Fund (AECF) has launched the Renewable Energy and Adaptation to Climate Technologies (REACT) special funding window that will see innovative private sector players receive up to Sh120 million interest free loans and grants to fund energy projects.

AECF Director Hugh Scott said on Friday that successful ideas would have to demonstrate a positive impact on the rural poor, deliver increased employment, improved productivity and cut energy costs.

“The financial sector is so crucial in the development of rural areas and we want to incentivise the private sector to put in place new mechanisms for financing these initiatives,” Mr Scott said.

Mr Scott said applicants would be expected to match the loan application to qualify.

“In reality we expect the average project size from our side to be between $700,000 (Sh56 million) and $750,000 (Sh60.5 million) matched by the private sector at least one to one although we would like it to be three to one,” Mr Scott said.

The competition will only be open to profit making companies that include both African and international companies but the proposed projects must take place in one or more east African countries.

The competition, which will be rolled out early next month, is funded by the UK aid through the Department for International Development (DFID) to a tune of Sh800 million.

Speaking during the launch, Prime Minister Raila Odinga asked those interested in the energy sector to liaise with the Task Force on Green Energy at his office to facilitate the formalities involved in the establishment of related plants.

“We want to boost our green energy production from the current 1200 Mega Watts to 3,000 MW by the year 2013” the Premier said.

Advertisement. Scroll to continue reading.

He said the launch of the exercise could help in reversing the vulnerability of the region to the ravages of global warming as many consumers shift to energy sources with less carbon emission when the proposed power plants are in place.

The competition kitty which draws supports from International Fund For Agriculture ( IFAD) , Netherlands Ministry of Foreign affairs (NMFA) among other reputable organizations funds programs in Agribusiness.

The programs also consider entrepreneurs offering financial Services in rural areas and those involved in renewable energy and technologies that help small scale farmers adapt to climate change.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...