The Kenyan government has announced a major funding boost for the country’s renewable energy sector, with Sh500 million set to be injected into the sector from the Swedish government. The funding will be provided through the Energy for Green Growth programme, which aims to invest in innovative business ideas such as the circular economy and the productive use of energy.
“REACT aligns perfectly with Sweden’s development priorities, including poverty reduction, environmental sustainability, and economic empowerment. We have seen that private sector engagement is important, especially when it comes to the deployment of innovative and scalable solutions.”
Marie Ottosson, Head of Development Cooperation at the Swedish Embassy in Kenya, highlighted that the Energy for Green Growth programme focuses on interventions in energy access for underserved regions, productive use of energy, e-mobility, circular economy initiatives, and green transition technologies.
- Energy access for underserved regions
- Productive use of energy
- E-mobility
- Circular economy initiatives
- Green transition technologies
These interventions are designed to support the development of innovative and scalable solutions, and to address some of the key challenges facing the energy sector in Kenya. In Kenya, only 30 per cent of households have access to clean cooking energy, with the majority relying on traditional cooking methods and wood fuel. This not only contributes to deforestation but also exposes many households to health risks.
The African Enterprise Challenge Fund (AECF) has partnered with the Swedish International Development Cooperation Agency (SIDA) to launch the Renewable Energy and Climate Technologies Kenya programme (REACT). The programme aims to transform Kenya’s energy sector through a range of interventions.
| Interventions | Energy access for underserved regions | Productive use of energy | E-mobility | Circular economy initiatives | Green transition technologies |
The programme is designed to support the development of innovative and scalable solutions, and to address some of the key challenges facing the energy sector in Kenya. Key Benefits
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Support for innovative business ideas
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Enhanced energy access for underserved regions
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Increased productivity and competitiveness
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Green transition technologies
In a bid to support private sector companies developing clean energy solutions, the AECF has called for greater support for private sector companies. Many of these companies are struggling to access commercial funding due to high risk. Key Call to Action
Support private sector companies developing clean energy solutions
Access to commercial funding is critical for scaling innovations
This initiative is in line with the growing pressure on banks to be more conscious of their environmental and social impact.
