KCB Bank has partnered with renewable energy firm Sentimental Energy in a venture that aims to roll out solar power solutions to learning institutions across the country and help them slash electricity bills.
Under the agreement, KCB will offer collateral-free green loans at an annual interest rate of 9.75 percent to eligible schools for a maximum tenure of seven years. Public schools will be able to access up to Sh20 million in financing while private institutions can borrow up to Sh10 million. The repayment structure is designed to leverage cost savings generated from reduced reliance on the national grid.
KCB Head of Sustainable Finance, Eric Naivasha, said the deal seeks to support schools in adopting clean, reliable, and cost-effective energy sources, particularly in lighting, electric cooking, and water heating.
“Our partnership with Sentimental Energy is anchored in the urgent need to decarbonise learning institutions. By fully financing the installation of solar systems, we’re enabling schools to transition to sustainable energy without the burden of upfront capital,” he said.
He added that nine schools have already benefited from the pilot phase of the project, with plans to scale the initiative in the coming year. Sentimental Energy will spearhead the technical execution of the project including site audits, preparation of financial proposals, and the design, supply, installation, and maintenance of the solar power systems.
“The education sector’s reliance on consistent electricity makes solar a strategic solution. Schools with unreliable power experience disruptions in digital learning, poor boarding conditions, and increased operational costs. Through solar, institutions can meet up to 75 percent of their energy needs while lowering their dependence on the national grid,” said Paul Simiyu, Managing Director at Sentimental Energy.
The project comes at a time when the adoption of captive power, the electricity generated for on-site consumption is on the rise in Kenya. This has been fuelled by the escalating energy costs and frequent outages.
According to the Energy and Petroleum Regulatory Authority, solar photovoltaic and bioenergy lead the captive power mix with installed capacities of 229.2megawatt (MW) and 161.8MW respectively. Other sources include waste heat recovery (83.5MW), hydro (33MW), thermal (21.3MW), and geothermal (3.7MW).
A 2024 report by the International Energy Agency projects that solar energy will grow at an annual rate of 28 percent between 2025 and 2027 outpacing wind, which has led in renewable energy expansion over the past six years.
