Innovative Green Financing for Energy Access: Insights from Kenya

This policy brief by the South African Institute of International Affairs examines the role of green financing and blended finance in scaling renewable energy across Africa, using Kenya as a primary case study to illustrate how public and private capital can be combined to meet rising energy demands and climate commitments.

• Africa faces a significant energy access gap, with 640 million people lacking electricity, representing a global low of 40% access. To achieve reliable supply for all, the International Energy Agency estimates that annual investments of $120 billion are required until 2040.
• The continent possesses vast renewable energy potential, including 10,000GW of solar, 400GW of natural gas, 350GW of hydro, 110GW of wind, and 15GW of geothermal. Renewable sources already account for three quarters of new generation, with solar PV leading in installed new capacity.
• Green financing is identified as a critical innovative model to increase financial flows from public and private sources using instruments like grants, debts, and guarantees. This is necessary because public funds alone are insufficient to cover the high costs of generation, transmission, and last-mile connectivity infrastructure in Africa.
• Kenya aims for 100% renewable energy by 2030 and universal electricity access by 2022, requiring an investment of $2.75 billion, followed by $58 million annually after 2022. The country has implemented the Public Private Partnerships Act of 2013 and a Feed in Tariff policy to attract investment.
• Kenya has successfully used risk mitigation and concessional financing to attract private investment. Examples include the Turkana Wind Project, which used a Partial Risk Guarantee from the African Development Bank and resources from the EU-Africa Infrastructure Trust Fund; the Kopere Wind Project, which used AfDB concessional loans; and the Menengai Geothermal Project, which utilized Climate Investment Funds.
• The European Union can support Africa's energy transition by creating risk mitigation products through development finance institutions and partnering with local private sector and financial institutions. An example is the joint investment by the European Investment Bank and the Netherlands Entrepreneurial Development Bank in an 80MW solar project in Kenya.

APA

South African Institute of International Affairs (2020). Innovative Green Financing for Energy Access: Insights from Kenya. https://saiia.org.za/research/innovative-green-financing-for-energy-access-insights-from-kenya/

Chicago

South African Institute of International Affairs. Innovative Green Financing for Energy Access: Insights from Kenya. 2020. https://saiia.org.za/research/innovative-green-financing-for-energy-access-insights-from-kenya/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Innovative Green Financing for Energy Access: Insights from Kenya |date=27 September 2020 |url=https://saiia.org.za/research/innovative-green-financing-for-energy-access-insights-from-kenya/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020innovative, author = {{South African Institute of International Affairs}}, title = {{Innovative Green Financing for Energy Access: Insights from Kenya}}, institution = {South African Institute of International Affairs}, year = {2020}, month = sep, url = {https://saiia.org.za/research/innovative-green-financing-for-energy-access-insights-from-kenya/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }