REACT 2.0 Kenya Programme Milestone – Based Grants

The purpose of this intervention is to contribute to the green growth of Kenya, providing low carbon and lower polluting employment opportunities, increased income, enhanced resilience, and a better quality of life.

Specific Objectives

• The intervention will aim to achieve the following specific objectives:
  • To increase access to modern energy services to underserved communities.
  • To increase access to quality productive use of energy (PUE) solutions for MSMEs and agricultural value chains.
  • To accelerate the growth of reliable and affordable e-mobility services (mainly 2 and 3-wheelers) in Kenya.
  • To transform the circular economy into a more sustainable system that emphasizes ecosystem restoration, waste recycling, reuse and value reduction, optimizing resource use, and promoting continuous resource circulation through green transition technologies).

Focus Areas

• The project shall focus on companies with the most impact and transformation anywhere in Kenya. Companies meeting eligibility and selection criteria shall be invited to bid for the funding.
• This project is technology agnostic and shall be open to companies participating from any region in Kenya.

Technology Scope

• The technology scope shall include the following:
  • Stand-alone solar systems/SHS (Pico PV systems from Tier 0.5 to Tier 2)
  • Solar pumping solutions
  • Larger pumping solutions (targeting communities and aggregators
  • Solar refrigerators
  • Cold storage (targeting aggregators)
  • Solar driers (targeting aggregators
  • E-mobility (particularly those setting up charging infrastructure
  • Other pre-agreed renewable solutions within the end user price limit
  • Circular economy and green technologies- recycling, value addition, and the green transition.

Funding Information

• Applicants are expected to submit a funding application (concept note) presenting a project to be funded, explaining how the applicant meets the funding requirements, and stating the funding amount and the proposed project duration.
• The funding range will be determined by the company’s turnover and the business stage of development, as tabulated below.
  • Company Size (Turnover, USD): ≤ 200,000
  • Business – Stage of Development: Early stage (≥ 2 years of operation)
    • Funding Range(USD): 100,000 –250,000
• Maximum duration of the agreement: 4 years.

Eligibility Criteria

• To be eligible for funding, businesses must meet the following criteria:
  • Request a grant within the stipulated range.
  • Legally registered as a for-profit company (e.g., corporation, LLC, etc.) or a branch/subsidiary of an international forprofit company and physically established in Kenya at the time of awarding of investment by AECF.
  • Have been in operation for at least two years, with the ability to produce two years of audited accounts [these could be from the parent company if recently established as a branch/subsidiary in Kenya].
  • Compliant with all governmental statutory requirements.
  • Pass AECF’s KYC (know your customer), AMT/CFT (anti-money laundering and counter-financing of terrorism), PEP (politically exposed person), and IDD (integrity due diligence) screening.
  • Comply with all applicable national laws relating to human rights, labor, and social and environmental management and respect internationally recognized human rights standards, as expressed in the International Bill of Human Rights and the core labor standards established through the International Labor Organization.
  • Companies should demonstrate the need and demand for concessional capital.

Company Profile

• For PUE and Energy Access in underserved areas, the eligible applicants must fall into either of the following:
  • Supply side: Last-mile distributors, particularly in underserved areas
  • Demand side: Manufacturers aggregate produce from farmers for value addition or companies that aggregate source and link smallholder farmers to markets.
• For Circular Economy and green technologies, the eligible applicants must fall into either of the following:
  • Waste management companies specializing in recycling or adding value to the generated waste.
  • Companies contributing to the green transition for ecosystem restoration

For more information, visit AECF.