RESULTS-BASED FINANCE

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. 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).

4 years (from Q1 2025 to Q4 2028)

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.

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. Companies seeking results-based financing (RBF) are eligible for milestone-based grants (MBG), as long as the MBG funds constitute no more than one-third of their overall funding.

Read the term sheet below for additional information. 

 

AECF requires a financial contribution from the applicant to demonstrate commercial viability and readiness to share risk.

Acceptance of match funding is subject to approval and relates only to the proposed project expenses.

The funding requirement from the applicant is 1 (AECF) to 0.4 (applicant) based on the application value.

Financial contributions to the project can be made in cash or a combination of cash and/or ‘in kind’ provided the in-kind contribution does not exceed 25% of the overall contribution.

Types of financial contribution accepted:

1.Cash

• Cash in the bank.
• Where at least one party (e.g., financial institution, venture capital firm, impact investor, incubator / accelerator, mobile operator, foundation, or the founder/other shareholders) agrees to provide funding to the applicant. Evidence accepted  includes a signed MoU or contract, a bank statement, and a letter confirming the other party’s total amount disbursed
  or to be disbursed. The submitted documents of co-funding commitments must include all conditions, timescales, and other considerations.

2. In Kind

• Includes any significant and monetizable contribution to the project that is not financial. Applicants must be able to quantify and demonstrate what results any contribution given ‘in kind’ will achieve for the proposed project. In-kind contributions should be incremental/ would not have happened without the project.

AECF will discuss with the applicant how to best agree on the contribution commitment and valuation.

For RBF on PUE (E-mobility included) and energy Access in underserved areas, the eligible applicants must fall in either of the following:

• Supply Side: Distributors and manufacturers
• Demand side: Financial intermediaries such as MFIs and SACCOs

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

Applicants are encouraged to read the term sheets below before beginning the application process.

Applications will be accepted between 11 April 2025 and 11 May 2025. The window closes at 11:59 pm EAT on 11 May 2025. All applicants must submit their applications through AECF’s online platform.

The application link is accessible below.

 

*The AECF does not charge an application fee for participation in the competition and has not appointed any agents or intermediaries to facilitate applications. Applicants are advised to reach out directly to the AECF.