Funding for Climate Smart Technology - Case of Kenya Climate Innovation Center


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Nairobi, 15th July, 2014. Presentation by Ernest Chitechi (Taita Agriculture & Livestock Enterprises) on Day 1 of the Fin4Ag conference

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Funding for Climate Smart Technology - Case of Kenya Climate Innovation Center

  2. 2. • 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?
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. Key success cases 6 MilestonesMineral & 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..