Norfund, a private equity firm owned by the Norwegian government, has invested KSh1.6 billion ($15 million) in Brighter Life Kenya 1 to go toward solar energy projects. The funds will be used to acquire solar home systems from leading solar energy firm d.light Kenya and to provide power to over 1.9 million Kenyans living off-grid.
The investment is a social impact venture that aims to provide electricity to many Kenyans who lack access to the basic commodity. Additionally, the project is expected to generate KSh9.6 billion ($88 million) additional income to the Kenyan economy, and save the country over 600,000 tons of greenhouse gases.
Brighter life Kenya 1 is an off-balance sheet financing vehicle launched in 2020 to provide d.light Kenya with local currency financing over a two-year period. The firm recently raised KSh2.2 billion ($20 million) debt financing from American Development Finance Corporation.
Norfund invests in businesses that contribute to sustainable development in third world countries. The development fund is funded by the government of Norway and it focuses on four key areas, clean energy, green infrastructure, financial institutions, and scalable enterprises. Half of the fund is invested in Sub-Saharan countries and the rest is invested in Central America and South East Asia.
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