Kenya has a population of approximately 45 million people. Some 40 percent of this population has no or limited access to power. Access to electricity service in Kenya has increased rapidly in the last five years. Despite significant achievements in connections to the national grid covers, remote rural areas of the country have no grid coverage, for instance in most of the northern and north eastern regions.
While the Kenyan Government has launched an ambitious Last Mile Connectivity program (also financed by the EU) to connect a majority of the population to the national grid, many rural areas will not have access to this source of electricity in the short term. Kenya’s extremely dynamic private sector has managed to provide an initial response via individual solar kits. Mini-grids need to be covered in order to achieve an additional level of access to electricity and service quality and contribute to the Kenyan's goal of universal access to electricity.
Private investments in mini-grids have been initiated in Kenya. However, they face numerous challenges which need to be addressed. The Green Mini Grid Facility Kenya aims to assist mini-grid entities in addressing these challenges.
The Green Mini Grid Facility Kenya will enhance access to energy in Kenya by encouraging private investment in renewable energy based mini-grids. Supported by the United Kingdom and the EU, the GMG facility will provide funding for investment grants, and technical assistance to both the grantees and the mini-grid sector as a whole to help develop the market place for mini-grids in Kenya. Ultimately, the GMG Facility will provide assistance to the private sector in a responsible manner so as to develop sustainable and scalable businesses providing energy access to all Kenyans. Through the technical assistance and responsible grant disbursement, the GMG Facility will finally prepare businesses for longer term financing linking them with other investment opportunities and financing sources.