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The report examines Kenya’s rural electricity gap and barriers to solar adoption. It highlights PAYG models as key to affordability and proposes two solutions—Solar Ambassadors for local servicing and Solar for Productive Use to power small enterprises—aimed at driving last-mile electrification and rural growth.
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Kenya has made remarkable progress toward expanding electricity access, yet the “last-mile” challenge remains acute in rural and remote counties. According to the International Energy Agency (IEA), electricity access in Kenya rose from about 37 % in 2013 to approximately 79 % in 2023. At the same time, data from the World Bank indicates rural access stands at around 67.9% in 2023. This means roughly one in three rural households still lacks grid electricity access, highlighting considerable scope for off-grid and solar home system (SHS) solutions.
This report explores the barriers to solar adoption in rural Kenya, assesses the effectiveness of pay-as-you-go (PAYG) solar models, examines required post-installation support, and proposes two innovative solution concepts: a Solar Ambassador Franchise Model and a Solar for Productive Use model aimed at small businesses.
National-level indicators show that rural electrification remains incomplete.
As noted, rural-access rates are estimated at about 67.9 % (World Bank). Other data show rural access increased from about 7.2% in 2010 to 68.2% in 2021 in Kenya. This leaves around 30–35% of rural households without reliable electricity access.
In many target counties especially in remote areas, access is far lower. For example, a survey by Afrobarometer found that only about one-third (35 %) of rural respondents reported reliable electricity from the national grid.
Given this context, the “last-mile” rural households in off-grid or weak-grid counties often remain unserved or underserved.
Key takeaway: Even with strong national progress, a substantial minority of rural households, roughly one in three, still lack adequate electricity and therefore represent a significant opportunity for solar intervention.
Research in Kenya and across sub-Saharan Africa identifies a range of barriers to solar adoption.
a) Upfront cost and financing barriers
The PAYG model addresses this, but credit risk, financing infrastructure and affordability remain issues. A review found that in Kenya “credit risk is a major concern for solar firms as well as financiers which makes payment models notably challenging.”
Microfinance loans carry high interest rates and demand collateral that many lack. Women and youth face extra financial exclusion due to ownership, cultural, and credit history barriers.
b) Awareness, trust and product quality
Limited awareness about technology benefits, operation and maintenance leads to hesitation. Mahadevan’s 2022 study highlights the importance of information constraints as a barrier to adoption.
c) Maintenance, after-sales support and reliability
Technical issues like system failures, battery maintenance, or seasonal performance can negatively impact adoption and sustainability. For example, many SHS systems in rural Africa face performance issues linked to user training or product quality. Battery degradation and expensive replacements undermine confidence in long-term solar reliability.
d) Infrastructure and grid connectivity dynamics
In some rural zones, households may delay solar adoption if grid-connection is expected soon, or else find solar investment less attractive when standing grid connection is within reach. A study noted that households farther from grid were more likely to adopt solar.
The PAYG or “rent-to-own” solar home system model has gained traction in Kenya as a means to overcome upfront cost barriers and improve affordability. The United Nations Framework Convention on Climate Change (UNFCCC) describes the PAYG model in Kenya as enabling off-grid customers to pay in small instalments via mobile payments and remote system management (e.g., remote deactivation upon non-payment).
In Kenya, sector data indicate the off-grid market is expanding and largely driven by PAYG models. For example, CleanEnergy4Africa reports that 58 % of solar energy kit sales in 2023 were via cash and PAYG systems.
Effectiveness insights:
Post-installation support is crucial for long-term performance, user satisfaction, and system sustainability. Key support needs include:
1. Solar Ambassadors Franchise Model
Objective: Empower local entrepreneurs as solar advisors/installers, build local servicing capacity, and improve last-mile reach and support.
Key elements:
Contribution to barriers:
2. Solar for Productive Use
Objective: Extend solar deployment beyond lighting/home use to small productive enterprises (salons, shops, irrigation pumps) to generate revenue and accelerate pay-back, thus increasing business value and economic resilience.
Key elements:
Why this matters: When solar enables business income rather than only household lighting, the pay-back is stronger, credit risk is lower and adoption faster.
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