Paper short abstract:

Green financing landscape for pro-poor investments in Kenya is examined. Clean energy governance framework constantly improves making Kenya a regional pioneer. Successful business models targeting the poor exist that via innovation and cultural appropriateness make a market niche from a problem.

Paper long abstract:

Today, almost one and a half billion people around the world do not have access to modern electricity services and three billion people rely on traditional biomass for cooking and heating, with adverse effects on health, environment and economic development. This streamlines international development efforts to ensure access for all to affordable and clean energy services and stresses the importance of effective financing frameworks for promoting pro-poor green investments. The article aims to examine green financing landscape focusing on supportive policies and innovative green financing models with potential social benefits concentrating on the case of Kenya. The conceptual framework of energy pathways to poverty reduction concept is employed. Empirical evidence acquired from the fieldwork strengthens the research. Results show that clean energy governance framework is constantly improving with the introduction of innovative approaches making Kenya a regional pioneer. Recently, Kenya managed to introduce long-term supportive frameworks for renewable energy development in a form of feed-in tariffs, tax exemptions, net metering, power wheeling, auctioning, licensing, etc. International organizations act as starters for pushing the take-up of renewable mini-grid technologies. However, targeting, assessing and managing the social impacts of projects is not practiced. Nonetheless, successful and sustainable business models targeting the poor exist that through innovation and cultural appropriateness succeed in making a market niche from a problem. Mobile revolution, mix conditions and timing of financing instruments are important.