Detailed Information on Kenya - Barclays Bank of Kenya
(SACCO Project)

Project Summary

The project encompasses the provision of finance for the sale of solar home systems (SHS) to members of Kenyan Savings and Credit Co-operatives (SACCOs). SACCOs operate on a similar basis to credit unions and are instrumental in providing basic financial services to groups typically excluded from the conventional mainstream banking sector. Barclays, one of Kenya’s largest banks, proposes to offer solar loans to SACCOs, which will in turn offer solar loans to their members. Barclays is partnering with Kenya Union of Savings and Credit Co-operatives (KUSCCO), an umbrella organisation representing over 1,500 SACCOs, to implement the project and only IFC approved SACCOs that are members of KUSCCO will be eligible to borrow from Barclays under the project. SHS will be supplied by Solagen, a leading Kenyan PV company, and other approved suppliers.

PVMTI Investment

PVMTI has committed a total of US$ 2 million in loans and grant to the project. This project builds on the experience gained from the Muramati project and will enable PVMTI to reach the broadest possible spread of potential SHS customers in rural areas of Kenya.

Sponsor Comments

The project will allow Barclays to gain experience in lending to SACCOs, KUSCCO’s involvement is especially attractive to Barclays because of KUSCCO’s experience in advancing loans to SACCOs and assessing their credit-worthiness. KUSCCO will be instrumental in marketing the scheme to its member SACCOs. Several SACCOs have already expressed strong interest. Both Barclays and KUSCCO expect to partner only with competent suppliers who will provide system guarantees and after-sales service and maintenance.

Current Status

This is the most recent of the PVMTI projects in Kenya. The project was recommended for approval by IFC’s PVMTI Investment Review Committee on July 12, 2002. The project was delayed on account of delays in the tedious documentation involved. The documentation is now complete and the project should be launched shortly.

Contacts

Simon Karunditu
Senior Corporate Manager
Barclays Bank of Kenya Limited
Barclays Plaza, Loita Street
P.O. Box 30120
Nairobi, KENYA.
Tel: +254 2 332230
Fax: +254 2 331396
Email: simon.karunditu@barclays.com