FUNDING FOR CLIMATE SMART

TECHNOLOGY – CASE OF KCIC

– FIN 4 AG CONFERENCE

• World Bank-infoDev initiative, funded by UK Aid and DANIDA

• Provides incubation, capacity building services and financing

to SMEs developing climate mitigation/adaptation solutions

• Operational since September 2012, the first among the CICs

that infoDev is launching globally

• GVEP International, PwC, Strathmore University and KIRDI are

the lead partners in a consortium contracted by infoDev to

establish and operate the KCIC. Actual implementation is done

works with many supporting partners and collaborators.

• Currently in the process of incorporation as a Company Limited

by Guarantee to strengthen sustainability of its operations.

2

What is the KCIC?

KCIC Model

• Providing risk capital through

a highly flexible fund that

offers financing through two

windows, namely proof of

concept and seed financing

• Facilitating other sources of

financing through

syndicating investors, building

partnerships with banks to

facilitate working capital

finance and facilitating

consumer financing to ensure

technology adoption in the

market

Key Success case

4

Kukubora Challenges and support being provided

Business challenges:

• Transform Indigenous Chicken rearing into a

viable and market oriented economic activity

• Proving the concept is technically and

financially feasible

• Need to understand key business drivers and

costs at each step of the value chain

• Attracting investors into the venture

Support being provided by CIC:

• Review technical feasibility and business

potential

• Verify assumptions on the value chain

• Mainstream gender and youth into the

economic agenda,

• Strengthen the marketing function of the

indigenous poultry value chain,

• Strengthen the rural cluster model of

production, improve quality assurance of

indigenous poultry meat products

Status

Signed agreement with Bungoma

county

Slaughter facility completed with 500

chicken per hour

POC amounting to USD 42,000 granted

Additional comments:

The company to commercialize the idea

of growing indigenous poultry value chain

Key Success case

5

Aviva Kenya Challenges and support being provided

Business challenges:

• Kenya imports eighty percent of its rice.

• Low rice production has mainly been due

to rice varieties that only grow in continuous

flooded paddies.

• The company is encouraging farmers to

adopt nerica rice farming for diversification

and to enhance food security

• Proving the concept is technically and

financially feasible

Support being provided by CIC:

• Undertake further farmer mobilization

• Field testing of nerica rice production and

obtain feed-back from farmers on seed

performance.

• Implement a marketing campaign to raise

awareness of, and demand for, the nerica

rice, and limited market test to better

understand willingness to pay and price

point

Status

Currently promoting rice growing in

non-traditional rice growing areas in

Arid and Semi-Arid areas of Meru,

Tharaka Nithi and Isiolo counties

POC amounting to USD 27,000 granted

Key success cases

6

Milestones Mineral & Allied

SunCulture

Mineral & Allied Ltd had grown from a small Agro-vet

shop that provides livestock inputs to farmers around

Wangige Shopping Center to a major provider of

hydroponics technology in the Country. It has opened

over 15 outlets/contact points and installed 285

hydroponic units across the Country. The business has

also grown its sales by 240%. The CIC support has been

directed at growing market awareness , development

of effective farmer outreach models and training

materials. The business has also been assisted to patent

the appropriate aspects of its technology.

SunCulture is providing low-cost and efficient irrigation

technology targeting smallholder growers of high-

value crops in the country. The business has sold 32

irrigation in the last 6 months when it entered the

market. The customers are further provided with

extension support and linkage to competitive markets

for their crops. The Company is currently embarked on

a robust market expansion plan within Kenya and

Uganda over the next 5 years. The main CIC support

has been in end-user financing through which the

Company has successfully entered into partnership with

Equity Bank..