Applications are now open for the 2020 REACT Kenya Relief Fund.
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The REACT Kenya Relief Fund will provide emergency grants to distributed energy service companies who are struggling to maintain access to energy to their thousands of rural customers because of the unprecedented disruptions and challenges from operating during the COVID-19 pandemic.
The REACT Kenya Relief Fund is a USD2 million initiative that will award emergency grants to companies operating in Kenya that can demonstrate that:
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- They are serving the energy needs of off-grid households in poor rural and peri-urban areas and
- They need financial support if they are to safeguard jobs and essential services during the coronavirus pandemic.
The specific objectives of the fund are to:
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- Provide relief to off-grid energy companies so that their employees, customers, and supply chains are not adversely affected by Covid-19 economic shocks;
- Guarantee energy access as an essential service (lighting, cooking and productive use of power) during the COVID-19 emergency;
- Provide targeted technical assistance to enable companies to develop solid strategies of coping with the COVID-19 pandemic.
- Understand the impacts that COVID-19 has had on low-income, off-grid households
Funded by Sweden, and managed by AECF, support will be provided through disbursements of emergency grants (USD50,000 –USD200,000) to cover short-term working capital needs (3-12 months) and technical assistance for business continuity.
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The fund is open to current AECF portfolio companies as well as other companies in Kenya who meet the following criteria:
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- Be a limited liability company (LLC), legally registered and physically established in Kenya;
- Minimum of USD250,000 turnover in the past 12 months, with more than 30 staff in Kenya, and a current portfolio of at least 3,000 active energy customers;
- Business goal is to increase access to clean and affordable energy solutions for all (SDG 7);
- At least 70% of revenues from sales of energy access products/services to low-income households;
- Demonstrates clear approach to continuing services and preserving value chain employment during and post COVID-19;
- Must have working capital covered up to June 2020 and a ten-month funding plan showing liquidity scenarios from July;
- Has a financing gap created by the impact of COVID-19, split per budget line (and not supported by other sources of funding);
- Can justify need for relief funding of between USD50,000 – 200,000; and
- Has capacity to quantify the socio-economic impact the support will have on the company’s customers and employees during COVID-19.
For more information, visit https://www.aecfafrica.org/index.php/covid-19