The Government of Kenya (GoK) seeks to close the access gap by providing electricity services to remote, low density, and traditionally underserved areas of the country. The GoK intends to use US$150 million of financing from the World Bank to deliver the Kenya Off-Grid Solar Access Project (KOSAP).
KOSAP promotes these objectives by supporting the use of solar and clean cooking technology to drive electrification of households, enterprises, community facilities, and water pumps.
The facilities will target 14 of the 47 counties in Kenya that have been defined as “marginalized areas” by the Commission on Revenue Allocation (CRA). The 14 KOSAP Service Territories collectively represent 72 percent of the country’s total land area and 20 percent of the country’s population.
The Ministry of Energy (MOE), Kenya Power and Lighting (KPLC) and the Rural Electrification Authority (REA) will implement the facilities in 4 components over a 5-year period (2018-2023):
US$40M: Mini-grids for Community Facilities, Enterprises, and Households
US$48M: Stand-alone Solar Systems and Clean Cooking Solutions for Households
US$40M: Stand-alone Solar Systems and Solar Water Pumps for Community Facilities
US$22M: Implementation Support and Capacity Building
The KOSAP Clean Cooking (CCS) Solutions Challenge Facility is a Results Based Financing (RBF) fund that is open for actors in the supply chain of clean cookstoves and fuels. The facility will provide different methods of financial support for the effectuation of business plans and sales by manufacturers, wholesalers, retailers and last mile distributors, to enable them to enter into business in targeted counties.
The Debt Facility will manage a total of US$30 Million in KES to support ongoing solar operator growth in the KOSAP Service Territories, specifically targeting working capital constraints associated with getting hardware inventory to market and with providing consumer financing to end customers.
The KOSAP Solar Service Providers Results-Based Financing SSP RBF Facility will award a total of US$12 million (in Kenya Shillings) in financing to compensate solar home systems service providers (SSPs) for initial, ongoing incremental, and opportunity costs associated with an expansion of operations in the KOSAP Service Territories (KSTs).