Kenya’s Low‑Carbon Startups Get $3M Boost: Climate Finance Accelerator Opens Applications
A list of Kenyan startups developing low-carbon solutions have received invitations to apply for funding under the United Kingdom-backed initiative called Climate Finance Accelerator (CFA) designed to oversee access startups have to capital and scaling up their impact.
The Climate Finance Accelerator (CFA) is a £12.6 million technical assistance programme funded by International Climate Finance (ICF), implemented to scale up across ten countries including Thailand, and Vietnam, working to develop a sustainable pipeline of bankable, low-carbon projects in each country.
As of March 2024, the CFA had ensured the provision for over 180 projects with specific tailored support with the first 30 projects progressing to close deals with investors, mobilising over $330 million in climate finance. The programme, which is delivered in partnership with Price Waterhouse Coopers (PwC), selects startups and project developers which are financially tailored, technical and gender equity support to ensure their climate projects are more attractive to investors.
According to the program initiative, proposed startups must be at least at the initial stage of feasibility and require a minimum of $1 million (Sh129 million) in investment. This funding is open until March 11th, 2026 with a total grant of $3million available. As Kenyan startups acquire this funding, it shows the need to shift to a low-carbon economy to be executed in different sectors such as forestry, waste management, energy, transportation, agriculture, and infrastructure.
The timing for this development is at the right timing for Kenya's emerging economy. In 2024, it was recorded that Kenyan climate tech companies raised $638 million, which included 29% of the continent's total $2.2 billion in startup funding and 88% of all startup funding in East Africa. Some of key startups that have participated in this movement are; BasiGo, d.light, and SunCulture. With this proposed funding by CFA, Kenyan climate tech companies hope to expand and develop over the next few years.