More households across the country are set to access clean and affordable energy after the Kenya Biogas Program signed a Memorandum of Understanding with Equity Bank to support the initiative.
Under the MoU, at least 2,000 households are expected to be installed with a biodigester on a flexible repayment schedule.
According to the program’s country manager Kevin Kinisu, Equity Bank is expected to design a specific credit product for the beneficiaries of the biogas program which is also being implemented in other four countries in Africa; Uganda, Tanzania, Ethiopia and Bukina Faso.
“It takes about one and a half years for an average household to fully repay a loan for the biodigester and we’re working on spreading the payments across this period from the time the household starts enjoying the biogas,” said Kinisu on Friday during an interview on the sidelines of the National Biodigestor conference and exhibition at a hotel in Westlands, Nairobi.
He further pointed out that a Dutch Development Bank, FMO has committed to supporting the initiative with one million euros, alongside an equal contribution from Equity Bank.
The Kenya Biogas Program will be guaranteeing technical expertise to the fund.
“What remains now is for us to design the product and the term sheet and deploy them with the development partner. We hope to launch it in early 2020,” noted Kinisu.
Under the Biogas program which is part of Africa Biogas Partnership Program (ABPP), a Public-Private Partnership between Hivos, Netherlands Development Organization (SNV) and the Directorate-General for International Cooperation (DGIS) of Dutch Ministry of Foreign Affairs , at least 21,000 households now have a biodigester they are using as a source of green energy.
Apart from being an energy source, biodigester also produces bio-slurry, an organic fertilizer the program hopes if fully embraced will contribute to the country's agenda of being food secure.
The cost of installing the technology ranges from Sh55,000 to Sh100,000 depending on the size of the biodigester.
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