Kenya Association of Manufacturers




The Regional Technical Assistance Programme

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The Regional Technical Assistance Programme
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Supporting Renewable Energy and Energy Efficiency projects


Programme Motto

The energy access, quality of supply, savings you want, and the financing you need.

The RTAP operated by KAM provides technical support to project sponsors and acts as a liaison between the Banks and the project sponsors to facilitate the development of viable Renewable Energy and Energy Efficient projects throughout Kenya , Uganda and Tanzania.

Programme delivery mechanisms

These are provided via 3 types of technical support:

Support to Prescriptive project is available for a selection of standardized renewable energy and energy efficiency projects that match predefined projects characteristics also called prescriptive projects. Most prescriptive projects do not need feasibility study before entering into the RE & EE projects pipeline.

Support to Custom project is available for non-standard and therefore more complex projects which are not covered by a prescriptive application. These projects must meet a number of qualifying criteria requirements which include cost effectiveness. All custom projects require a feasibility study before being qualified to entering into the RE & EE projects pipeline.

Technical Assistance pre-financing is available to provide assistance to eligible project sponsors for the development or implementation of RE or EE systems. Assistance may include, but is not limited to feasibility studies, grid impact studies and detailed energy audits related to retrofitting of existing systems, or modification of processes with production capacity expansion, or for new construction projects.

TYPES OF PROJECTS

Retrofit Projects financing

Prescriptive – Choose from a predefined incentive list based on a fixed-cost per unit installed in the following categories:

Custom - Custom Financing include renewable energy and energ#mce_temp_url#y-efficiency measures not included on the Prescriptive list. Common projects incl#mce_temp_url#ude: Variable frequency drive on non HVAC pump and fan motors, energy recovery ventilators and economizers and day lighting controls.#mce_temp_url#

Financing custom renewable energy or energy efficiency projects is subject to tiered financial limits with a decreasing financing share for the higher tiers. KAM utilizes this method to manage available credit line with the intent to attain equitable distribution among projects of various sizes. The required payback period to qualify for a custom measure financing must be between one year and seven years. The total financing can cover up to 75 per cent of the incremental measure cost.

Technical Assistance – Project Sponsors can receive up to 50 percent of the cost of an energy or feasibility study for a facility every three years. Pre-Financing are provided for contracted consulting work such as feasibility studies, energy audits, and retro-commissioning services. Customers with 500,000-2,000,000 kWh annual consumption can receive up to 50 per cent of the cost of an energy or feasibility study for retrofit projects up to a maximum of $10,000. Customers with over 2,000,000 kWh annual consumption can receive up to a maximum of $20,000.

New Construction Financing

Prescriptive - A predefined incentive based on a fixed-cost per unit installed in the following categories:

Custom - Custom Incentives include renewable energy or energy-efficiency measures not included on the Prescriptive list. Common projects include: biogas generator or small hydro projects eligible to the Feed-in Tariff.

Financing custom renewable energy or energy efficiency projects is subject to tiered financial limits with a decreasing financing share for the higher tiers. KAM utilizes this method to manage available credit line with the intent to attain equitable distribution among projects of various sizes. The required payback period to qualify for a custom measure financing must be between one year and seven years. The total financing can cover up to 75 per cent of the incremental measure cost.

Custom Whole-Facility Financing - Financing are available for projects utilizing a whole-Facility energy model simulation demonstrating energy savings of at least 10 per cent beyond applicable building code or best practices.

  • Lending is capped at 50% for new facilities demonstrating at least 10 per cent energy-efficiency improvement as compared to minimum building code or best practices.
  • Lending is capped at 75% for new facilities demonstrating more than 20 per cent energy-efficiency improvement as compared to minimum building code or best practices.
  • Requires a whole-facility energy performance model simulation.
  • Sponsors who use the whole-facility approach do not qualify for other prescriptive or custom financing.

 Technical Assistance

  • Facility Simulation Modelling Pre-financing – 100% of the cost associated directly with facility simulation modelling will be pre-financed up to a maximum of $20,000.
  • System impact study Pre-financing – 100% of the cost associated directly with facility simulation modelling will be pre-financed up to a maximum of $20,000.
  • Design Pre-financing – for building designs that have a projected first-year electrical savings of at least 15 per cent beyond the applicable building code or best practices. For facility design services, KAM will pay for a portion of the engineering and architectural design cost up to a maximum of $50,000.
  • A project sponsor may select to apply for financing for either a facility energy modelling service or facility design, but not both.


Programme Requirements

To qualify for the Renewable Energy and Energy Efficiency Financing Programme:

  • The area of improvement must be on an approved rate schedule as listed in the Policies and Procedures Manual.
  • Projects must involve an energy efficiency improvement that results in a sustained reduction in electrical energy usage (kWh).
  • Complete requirements and details for each incentive program must be met as outlined in the Policies and Procedures Manual.

Renewable Energy and Energy Efficiency Financing Programme Process 

  • Once a project is identified, a pre-approval incentive application should be submitted to Progress Energy and when approved, proceed with installation.
  • Pre-approval is required for some lighting prescriptive measures, and all custom projects and technical assistance and is strongly encouraged for all projects to reserve funding. Submission of a pre-approval application is not a guarantee of program acceptance.
  • When the project is completed, submit all required documentation, including a paid invoice, with the final incentive application for the incentive rebate within 60 days of project completion.  Note: for projects completed in 2011, final applications must be received no later than April, 2012.
  • Payment will take approximately eight to ten weeks from time of final application approval.
  • For complete details about the program and application process, see the Policies and Procedures Manual.

Financing Application forms

  • New Construction Application (Excel)
  • New Construction Application (pdf)
  • Retrofit Application (Excel)
  • Retrofit Application (pdf)

A5.3 Policies and Procedures Manual


Frequently Asked Questions 

Why is KAM offering Technical Assistance as a part of the Renewable Energy & Energy Efficiency Financing Programme?

The Renewable Energy & Energy Efficiency Financing Programme is designed to stimulate the access to long term and concessional rate financing of investors in Renewable Energy and Energy Efficiency.

For the purpose of this programme, Renewable Energy (RE) projects are projects producing any form of energy (heat, steam, power) without any fossil fuels or any radioactive source, including hydroelectricity, wind power, biomass & biogas, solar energy, sea energy and geothermal energy.  Energy Efficiency (EE) projects are capital expenditure projects that allow consumers to use less energy for achieving the same or a higher level of energy services (output).

Long term and concessional financing is being made available by the Agence Francaise de Developpement (AFD) to two commercial banks (partner banks) in each participating country (Kenya, Uganda, Tanzania).

The Regional Technical Assistance Programme (RTAP) operated by KAM provides technical assistance to project sponsors and partner banks for financing RE and EE projects. The RATP assesses if the submitted RE or EE projects fulfil the qualifying criteria and makes recommendation to the credit committee of the partner banks.

KAM is setting up an RTAP operation office in each participating country.

This programme is available to eligible project sponsors to develop, finance and implement RE and EE projects.

How to apply for the support of the RTAP for your RE and EE project

Once a project is identified, your business should submit an initial application.

After approval at pre-feasibility level by the RTA Team, the next stage involves assembling the requested documentation prior to submitting the final application. Should you apply for pre-financing of the feasibility study, then you have to comply with the procurement process as indicated in the Feasibility Study Agreement that you have signed with KAM.

When the feasibility study is completed and paid, simply submit all required documentation with the final application to the RTAP in order to obtain a technical eligibility agreement from KAM.

KAM will then transfer your application to your chosen partner bank. Getting the technical support of the RTAP or the technical eligibility agreement is not a guarantee to obtain financing from the partner bank.

Who is eligible to apply for project financing through the Renewable Energy & Energy Efficiency Financing Programme?

Eligible project sponsors are any registered companies in the three participating countries (Kenya, Uganda and Tanzania) that apply for financing investment projects to be built in the three participating countries.

There is no obligation from the partner banks to finance a project presented by an eligible project sponsor.

Additional eligibility is programme-specific to the applicable financing programmes. Additional details regarding financing requirements are found on the corresponding financing application.

Programme Requirements

To qualify for the Renewable Energy and Energy Efficiency Financing Programme:

  • The area of improvement must be on an approved technology schedule as listed in the Policies and Procedures Manual.
  • Projects must involve a facility improvement that results in a sustained reduction in commercial energy usage.
  • Complete requirements and details for each financing programme must be met as outlined in the Policies and Procedures Manual.

Am I eligible even if my company is not a member of KAM or KAM’s partners hosting the RTAP operational office in Uganda and Tanzania?

Yes you are eligible. Eligibility is neither limited to KAM members in Kenya nor members of KAM partners in Uganda and Tanzania that host the RTAP operation office.

Do I have a chance to obtain a financing offer with one of the partner Banks of the project, even if I don’t hold an account with these banks?

You may wish or not to do banking business with one of the two participating banks. If no, then it should be explored whether your regular banker may secure financing with one of the two participating banks. Your choice and the willingness of participating banks need to be matched.

How can I apply for RE or EE project financing?

Once a project is identified, your company should submit an initial application.

When approved at pre-feasibility level by the programme, proceed with assembling the requested documentation prior to submitting your final application. Should you apply for pre-financing the feasibility study, then you have to comply with the procurement process as indicated in the Feasibility Study Agreement that you would have signed with KAM.

When the feasibility study is finished and paid, simply submit all required documentation with the final financing application to the programme for obtaining a technical agreement from KAM.

KAM will then transfer your financing application to a partner bank for negotiating the financing agreement. Until the closing of the financing agreement, there is no guarantee that your project will be financed.

Upon closing of the financing agreement, you are welcome to use any contractor of your choice for the engineering, procurement and commissioning of your financed RE or EE project as well as the manufacturers of your choice for the equipment.

The financing applications are included under the 'Details' tab of this webpage.

What types of financing are available?

The programme offers financing for RE & EE equipment and pre-financing of technical assistance in new construction and retrofit projects. For equipment upgrades, project sponsors can choose from an established "menu" of prescriptive measures or can design a custom project with verifiable energy savings. Complete information on all RE & EE financing programme can be found on the ‘Details’ tab of this webpage. The partner banks will make the final determination of financing levels for any project having received the technical agreement of KAM.

What is the order of magnitude of the financing offering of partner banks? What interest rate? How many years repayment?

These conditions are driven by each Bank/AFD agreement and each partner Bank’s marketing strategy to meet its commitment under the above agreement. In no way, KAM RTA is authorized to interfere with this matter. Communication on this matter by KAM RTA is strictly controlled by the participating banks and shall be clarified very soon.

I am interested with your Renewable Energy and Energy efficiency financing programme but have no idea where and how I can save energy in my facilities; how can you help?

You may be eligible to the energy audit programme managed by KAM’s Centre for Energy Efficiency and Conservation; please contact KAM’s energy audit coordinator.

How can I find a contractor to perform my energy-efficiency upgrade work?

KAM’s RE & EE financing programme works with RE and EE equipment vendors, contractors, engineers, architects and energy services providers who have been educated on the RE & EE financing programme. These Trade Allies play an important outreach role by helping businesses learn about KAM’s RE & EE financing programme. They have been educated on the financing programme features and understand the programme’s rules and processes.

If your business already has a contractor you work with, you are welcome to use them or go out for bid as usual. You may also check the list of programme Trade Allies, which can be found and downloaded from the Trade Allies tab of this Web site.

How can contractors get involved in the RE & EE financing programme?

If you are a renewable energy or energy efficiency equipment or services provider who is interested in participating in the Trade Ally programme, please visit the 'Trade Ally' tab of this Web site for additional information. All eligibility requirements are listed on the Trade Ally application.

Who can I contact for additional questions on program participation?

If your business is a member of KAM, please contact your regular KAM Regional or Sectoral interlocutor for additional information. For all other inquiries about the RE and EE financing programme, please contact Mr Jeff Murage, our RTAP project coordinator at KAM’s Center for Energy Efficiency and Conservation (CEEC).

Email Address: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website:             www.kam.co.ke
Mailing Address: KAM,  PO Box 30225 - 00100 GPO, Nairobi 
Office tel:        (+254) 20 3744886, 3741634, 3746022 | 6, (+254) 20 3746030
Office fax:      (+254-20)3746030
Office cell:      (+254) 722-201368, 734 646005
Personal cell:   (+254) 720261149 , 735818626.
Wireless:          (+254) 020 8070594/5, 020 2324817/8
Location:         Opposite Nakumatt Westgate, along Mwanzi Road, Westlands

Trade Ally Programme

If you are interested in becoming a Trade Ally, please click here.

What is a Trade Ally?

KAM’s Renewable Energy and Energy Efficiency Financing programme works with renewable energy and energy-efficiency equipment vendors, contractors, engineers, architects and energy services providers who have been educated on the Renewable Energy & Energy Efficiency Financing programme. These Trade Allies play an important outreach role by helping businesses learn about KAM’s renewable energy and energy-efficiency programmes. They have been educated on the financing programmes offered and understand the program's rules and processes.

Benefits for participating Trade Allies include:

  • Increased exposure for your company - Your business’ name and contact information will be listed and made available for all project sponsors to reference.
  • Build your business - Use KAM’s Renewable Energy and Energy Efficiency financing programme to broaden your customer base and provide additional support for your current customers.
  • Marketing tools – Being a Trade Ally gives you tools to help market renewable energy and energy-efficiency services and products.
  • Search for a Trade Ally to assist in your next renewable energy and energy efficiency project in the attached directory of trade ally.


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