Clean Energy Micro-financing

Despite the fact that adoption of clean energy can increase disposable incomes as well as contribute to health outcomes of low-income urban households, affordability remains a primary obstacle. The low-income households lack the purchasing power (upfront costs of clean energy installation) or the ability to save for energy products that have the potential to improve their lives.

 Project Highlight:

With the goal to increase access to clean energy for low-income urban households CSUDP has partnered with K-Rep Development Agency (KDA) to develop a micro-finance product to enable these consumers purchase and immediately benefit from clean energy products, that is, clean and improved cook-stoves (BURN Jiko Koa) and solar lanterns (Sun King Pro 2) well as water filters (Chujjio). They then pay for these products overtime according to their ability to pay, bolstered by savings as a result of using the energy saving products. The initiative was piloted in Kiandutu, Thika,  a slum area with around 8,400 households and a population of 40,000 residents. Over 4, 000 households have purchased the cook stove.

Previously, these households spent 10% of their income on energy with 80% of the energy costs devoted to fuel for cooking and lighting.