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Kenya off-grid power firms to gain from Sh10bn fund

A woman lights up her kitchen using a solar-powered bulb as she prepares food at her home in Gem, Siaya County.  FILE PHOTO | TONNY OMONDI | NMG
A woman lights up her kitchen using a solar-powered bulb as she prepares food at her home in Gem, Siaya County. FILE PHOTO | TONNY OMONDI | NMG 

Kenyan firms producing off-grid power can now access capital from a new Sh10.3 billion fund that is being set up by the African Development Bank (AfDB) and a group of international financial investors.

The fund, known as the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF), is set to provide local and hard currency loans to off-grid energy companies that specialise in producing clean electricity, focusing initially on East and West Africa.

Power projects such as wind and solar in parts of northern Kenya, which are far from the national grid are the likely beneficiaries from the fund.

“The fund will be managed by Lion’s Head Global Partners operating out of offices in Nairobi, Lagos and London, with an initial focus on East Africa as well as Côte d’Ivoire, Ghana and Nigeria, and looking to build a strong pipeline of transactions throughout the region,” said the AfDB in a statement.

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