The African Guarantee Fund (AGF) has inked a loan portfolio guarantee agreement with the Nairobi-based Co-operative Bank of Kenya (CBK), under which AGF will extend a US$7.5 million guarantee facility to enable CBK to finance Kenyan micro, small and medium-sized enterprises (MSMEs) operating in the solar energy sector. Based on this guarantee facility, the CBK will launch a new range of bank loans for up-selling business solutions, especially in the supply of solar photovoltaic energy and solar installation projects. As Kenya aims to achieve universal access to electricity by 2022-end, photovoltaic mini-grids are among the options being contemplated to bring power to rural communities.
