Co-operative Bank of Kenya (CBK), a Nairobi-based financial institution, is introducing a new range of bank loans for Kenyan small and medium-sized enterprises (SMEs) active in the solar energy sector. It includes up-selling business solutions, opportunities to integrate counterparties, growing trade commissions, and integrating new package accounts for micro, small and medium-sized enterprises (MSME).
The launch of these funding options for Kenyan SMEs in the solar energy space was made possible by the $ 7.5 million guarantee facility provided to CBK by the African Guarantee Fund (AGF). “Banks in Kenya urgently need risk mitigation tools to support their SME lending. However, we must seek economic growth without harming the environment. Sustainability improves our quality of life, protects our ecosystem and preserves natural resources for future generations. Our partnership with the cooperative bank today reflects our commitment to increasing funding for green companies. “ says Franck Adjagba, director of business development at AGF.
Kenya is relying on solar energy for universal access to electricity by the end of 2022
Kenya is aiming for universal access to electricity of currently 75% by the end of 2022. Photovoltaic mini-grids are one of the options being considered to provide electricity to rural communities that are home to a large portion of the population but are too remote to be electrified from the national grid.
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CBK’s new financing packages for green SMEs and the development of the international solar cost will enable Kenya, East Africa’s largest economy, to realize its energy ambitions. According to the International Renewable Energy Agency (Irena), increasing demand and technological advances have contributed to a significant drop in the price of photovoltaic systems over the years. Solar costs have decreased more than 80% since 2010, while the reduced cost of energy from large solar panels is less than $ 0.09 per kWh, or Kshs 10 per kWh, compared to about Kshs 38 per kWh a decade ago. Between 2018 and 2019 alone, the price of solar power fell 13%, according to the same source.