NEWS

Residents of off-grid areas in Kenya are poised to benefit from the sale of quality solar and clean cooking products following the release of Sh500 million from the Kenya Off-Grid Solar Access Project (KOSAP) to 19 companies to facilitate the sale of their products in these counties.

The release of funds has provided the companies with the necessary facilitation to move into the counties to set up sales and after-sales infrastructure for standalone solar systems and modern cookstoves, under the Sh15 billion Kenya Off-Grid Solar Access Project (KOSAP). A total of 10 vendors have been selected for standalone solar systems and 9 for clean cooking component, after a competitive evaluation process.

The companies are contracted under the second component of KOSAP, where Results Based Financing (RBF) and Debt Facilities have been established, aimed at spurring private sector actors to invest in modern solar solutions and providing clean cooking solutions in counties that are not served by the national electricity grid. KOSAP is extending financing to the selected companies as part of the government efforts to achieve universal access to electricity by 2022 and universal access to clean cooking by 2028, as per the Kenya National Electrification Strategy and the Kenya Sustainable Energy for Action Agenda respectively.

The Results Based Financing (RBF) and Debt Facilities are managed by SNV Netherlands Development Organization and SunFunder, on behalf of the Ministry of Energy.

Speaking about this development, Energy Cabinet Secretary Charles Keter noted: “This is a major milestone for us at the Ministry and the Government of Kenya. This project will enable us to provide Stand-alone Solar Systems (SSS) and Clean Cooking Solutions (CCS) for households in 14 counties that are currently underserved by the national electricity grid, as a critical lever for achieving inclusion, a higher standard of living for our citizens and overall socio-economic development.”

The recipient firms are expected to use the funds for product acquisition (stock), market distribution (network building at local level e.g. set-up of agents) and sales conversions through marketing and direct engagement with potential customers.

The 10 Solar Service Providers (SSPs) will be active in Turkana, West Pokot, Isiolo, Wajir, Garissa, Samburu, Marsabit, Isiolo, Tana River, Lamu, Kwale, Kilifi, Taita Taveta and Narok Counties. Under this first round of funding, the solar companies have received Ksh300 million cumulatively and will be expected to sell about 165,000 solar products in the 14 Counties.

The nine Clean Cooking Solutions (CCS) vendors have received a total of Sh200 million cumulatively and they are expected to sell about 85,000 stoves in the five Counties of West Pokot, Turkana, Marsabit, Samburu and Isiolo.

The Solar Service Providers (SSPs) that have been selected to participate in this component of the project are: Ms Greenlight Planet Kenya, Ms Solibrium Ltd, Ms Solar Integrated Appliances Ltd, Ms Raju Shanga House Ltd, Ms Azuri Technologies Ltd, Ms D. Light Ltd, Ms Livelyhoods Kenya Ltd, Ms Biolite Holdings Ltd, Ms Mobisol Holdings Ltd, and Ms Pawame Ltd.

On the Clean Cooking Solutions (CCS) front, the following firms were successful: Ms Rafode Renewable Energy Ltd, Ms Solar Integrated Appliances Ltd, Ms Raju Shanga House Ltd, Ms MK Light Africa Ltd, Ms Livelyhoods Kenya Ltd, Ms Biolite Holdings Ltd, Ms Africa Clean Energy Ltd and Ms Kenya Women Finance Trust.