Local venture capital firm Kenya Climate Ventures (KCV) has announced plans to invest in 14 green enterprises over the next two years.
KCV, which is backed by the Kenya Climate Innovation Centre (KCIC), says it will provide funding of up to Sh100 million and advisory services to small and medium-sized enterprises (SMEs) operating in sectors such as renewable energy, agribusiness and water management.
Others are in the commercial forestry and waste management sectors.
“We are looking to invest in 14 more companies in the next two years and 34 in the next four years,” KCV chief executive Victor Ndiege said in a statement.
The impact investment firm says it has already invested $2.67 million (Sh285 million) in six Kenyan enterprises, with its financing package ranging between Sh5 million and Sh100 million per beneficiary.
"By investing in strategic enterprises, KCV seeks to strengthen businesses operating in the green space in efforts to mitigate the effects of climate change and create job opportunities," the firm said.
Among the funded enterprises are Exotic EPZ and Mace Foods, both of which are in agribusiness, Ofgen (solar energy) and Sistema.bio (biogas solutions provider).
“We have now diversified our financing instruments beyond debt and convertible debt, to include equity, giving individual companies a variety of choices to choose from,” said Mr Ndiege.
“We have learnt that most early-stage companies would go for equity and convertible debt because they need more patient capital while the growth stage companies will certainly go for the debt option.”