Kenyan schools to get solar power through low-interest loans

May 07, 2025

Kenya Commercial Bank (KCB) and renewables firm Sentimental Energy have partnered to provide solar power solutions to Kenyan schools. KCB will offer collateral-free green loans with a 9.75% annual interest rate, almost half the average commercial bank lending rate. The loans will have a seven-year tenure. Nine schools have already benefited from the pilot phase.

  • Despite having a grid powered mainly by renewables, electricity remains expensive in Kenya. This is largely due to power purchase agreements being denominated in foreign currencies and affected by fluctuations in the exchange rate. These costs are passed on to consumers.

  • Many consumers are seeking cheaper off-grid alternatives. However, the upfront cost of installing solar power is prohibitive for many. Banks and microfinance institutions are stepping in to provide affordable financing options.

  • Our take: Lending institutions should focus on providing targeted financing solutions to meet the demand of those who need it most… Read more (2 min)

Norway-based renewable energy developer Scatec has started building the 1,100 MW Obelisk solar and 100 MW battery project in Egypt. The project, set for phased completion by late 2026, will be North Africa's largest solar project with storage. Scatec will sell the electricity to the Egyptian Electricity Transmission Company under a 25-year purchase agreement.

  • Solar + battery storage projects are rapidly expanding across Africa this year. Renewables Rising has tracked over 20 such initiatives. These are crucial for stabilising grids with large-scale renewables integration.

  • Egypt’s sovereign guarantee for the USD-denominated PPA reduces currency and offtaker risks, a critical move to reassure investors in volatile markets. This model could unlock similar projects in other African countries, where currency instability hinders renewables growth.

  • Our take: Egypt’s bet on sovereign-backed PPAs and storage integration offers a model other African countries should adopt… Read more (2 min)

African renewables received $1.4 billion in 10 funding deals, six times less than in March, according to the Renewables Rising funding database. Both established companies and startups benefited, with the Nigerian energy startup Arnergy securing $18 million in Series B funding to expand its operations. Only Nigeria secured more than one funding deal.

  • Despite the decline in funding received, over $27.2 billion was pledged. Italian energy company Eni announced plans to invest $27 billion across Algeria, Libya, and Egypt over the next four years.

  • Loans and grants accounted for 55% of the total funding received. Mauritania received the highest amount, at $289 million in financing, to develop solar power generation and transmission and accelerate its energy transition.

  • Our take: To capitalise on the evolving energy space, investors should diversify their portfolios to include other renewables like hydropower, which is playing an increasingly crucial role in the energy transition… Read more (2 min)

Energy company LPV Technologies collaborates with the Rural Electrification Agency to tackle the critical issue of energy access in Nigeria

Events

🗓️ Participate in a discussion on Solar energy for business (May 8)

🗓️ Sign up for a webinar on fatigue loading on solar trackers (May 13)

🗓️ Attend the Enlit Africa event in South Africa (May 20)

Jobs

🦺 Become Rubicon’s Operations & Maintenance Manager (South Africa)

👷 Join SunCulture as a Field Engineer (Kenya)

👩🏻‍🔧 Apply for Siemens Gamesa’s Wind Technician role (Morocco)

Various 

♻️ Liberia launches waste-to-energy project

💸 Kenya commits $34M for Coastal Power

☀ LONGi and ENGIE collaborate on utility-scale solar using advanced modules

Seen on LinkedIn 

Riad Meddeb, Director at  UNDP, says, “Achieving universal electricity access by 2030 will cost USD 30 billion a year: But how do we get there?”