Kuza Energy

Kenya

Country

Investment Amount (USD)

100000

Greenfield

Business type

Project IRR (%)

13

Installed capacity (MW)

2.5

GHG mitigation impact (tonnes of CO2e/year)

5648

Technology Area

Hydropower

The project is a 2.5 MW small hydro power generation scheme that sells clean energy to the national grid operator, Kenya Power Company. The power generated helps to supply the South Nyanza distribution network and load centres in the vicinity of the project site, and the generated electricity is then sold to Kenya Power under a standardised Power Purchase Agreement as per the feed-in-tariff policy. The project site is located in Kisii County, one of Kenya’s 47 counties which lies in the west of the country. The county has a maximum demand of 391MW, and the South Nyanza sub-region which encompasses Kisii County has an annual demand of 86 GWh. About 60% of the residents in this region are not connected to the national grid and rely mainly on kerosene for lighting and firewood for cooking.

Japheth Omari, CEO of Kuza, was supported by PFAN in putting together his financial model and was advised with regards to the business model. PFAN’s assistance continued to the investor stage, where his PFAN Advisor reviewed and advised on grant agreements and accompanied him to meetings with grantors and helped in the negotiations, assisting Kuza in reaching financial closure.

Through PFAN’s support in polishing our business model, coaching and investor linkages, Kuza has met and negotiated with different investors. PFAN has supported us in every step, increasing our project attractiveness to investors. We are greatly indebted to PFAN and specifically thank Wilfred Mworia, our Advisor and East Africa Rgional Coordinator, for going an extra mile to support us in every step of our journey.

- Japheth Omari,
CEO of Kuza