NATIONAL ENVIRONMENT TRUST FUND

STATUS REPORT

SUBMITTED TO:

MINISTRY OF ENVIRONMENT AND FORESTRY

OFFICE OF THE CABINET SECRETARY

SUBMITTED BY:

National Environment Trust Fund (NETFUND)

National Water Conservation and Pipeline Complex

Dunga Road

Telephone +254-(20)2369563/4

Address: P.O. Box 19324, 00202, Nairobi, Kenya

Website: www.netfund.go.ke

TABLE OF CONTENTS

1 NETFUND BACKGROUND ..................................................................................................................... 2

2 ALIGNMENT TO THE GOVERNMENT‟S PRIORITY AREAS ...................................................... 3

2.1 CONTRIBUTION TO THE BIG FOUR PILLARS ....................................................................... 3

2.2 CONTRIBUTION TO CLIMATE CHANGE ................................................................................. 9

2.3 PLASTIC BAGS AND LOGGING ................................................................................................. 11

3 STATUS OF IMPLEMENTATION OF KEY INITIATIVES .......................................................... 13

3.1 NETFUND GREEN INNOVATIONS AWARD ........................................................................ 13

3.2 ENHANCING CLIMATE RESILIENCE AND NUTRITION UPTAKE THROUGH

VALUE ADDITION TO THE MANGO FRUIT IN KITUI COUNTY ............................................ 21

3.3 SUPPORTING THE IMPLEMENTATION OF KENYA‟S NATIONAL GREEN

ECONOMY STRATEGY THROUGH THE DEVELOPMENT OF LOW CARBON PROJECTS

AND RESOURCE MOBILIZATION ......................................................................................................... 25

4 RENEWABLE ENERGY PROGRAMME ............................................................................................ 28

5 GREEN GROWTH RESEARCH PROGRAMME .............................................................................. 30

6 IMPACTS CREATED ................................................................................................................................. 33

7 CHALLENGES AND RECOMMENDATIONS ................................................................................. 34

8 PLANNED AND ONGOING PROGRAMMES: ................................................................................ 35

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1 NETFUND BACKGROUND

The National Environment Trust Fund (NETFUND) is a government organization established

under section 24 of the Environment Management and Co-ordination Act (EMCA, 1999).

NETFUND exists to facilitate research intended to further the requirements of environmental

management, capacity building, environmental awards, environmental publications, scholarships and

grants.

The organization‟s vision is “sustainable financing for environmental management in Kenya”. Its

mission is to “mobilize, manage and avail resources for environmental awards, capacity building,

research and publications, scholarships and grants in Kenya.”

NETFUND is governed by a Board of Trustees (BoT) which is the highest decision making organ

of the Fund. The BoT members are appointed by the Cabinet Secretary in charge of Environment.

The BoT is responsible for guiding the strategic direction of the fund, organizational policy

frameworks, oversight of the Fund‟s assets and undertaking any other activities within the mandate

of the organization. The day-to-day running of the organization is vested in the Chief Executive

Officer who is supported by a dedicated and skilled team.

The organization has a total of 31 staff members working under four departments: Programmes;

Resource Mobilization and Communication; Corporate Services and; Finance and Investment. Each

of the departments is headed by a Director who reports to the Chief Executive Officer. This report

highlights NETFUND‟s achievements to date and its contribution towards transforming Kenya into

a climate resilient and low emission development economy.

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2 ALIGNMENT TO THE GOVERNMENT’S PRIORITY AREAS

NETFUND programmes and initiatives are aligned to national policies, strategies and action plans

to place the country in low carbon development and green economy trajectories. The programmes

are in line with the organisations mandate of capacity building, awards, grants as well as facilitating

research. The organisation has prioritized policies, programmes and projects which generate broad

based inclusive economic growth, as well as faster job creation, reduction of poverty and inequality,

take into account climate change impacts, and contribution to the 17 Sustainable Development

Goals (SDGs) and the African Union Agenda 2063.

The initiatives contribute to Nationally Determined Contribution (NDCs) which seeks to abate

GHG emissions by 30% by 2030 relative to the BAU scenario of 143 MtCO2eq; and in line with its

sustainable development agenda. The organisation contributes to Kenya‟s Green Economy Strategy

and Implementation Plan (GESIP) and in particular the government‟s focus on the “Big Four”

Pillars.

2.1 CONTRIBUTION TO THE BIG FOUR PILLARS

Below is a description of how NETFUND‟s initiatives contribute to the Big Four Pillars.

I. FOOD SECURITY

Although agriculture is identified as one of the economic drivers of Vision 2030, productivity across

the subsectors continue to decline due to a number of factors such as poor farming practices,

climate change and variability, reduced soil productivity, inadequate markets and high post-harvest

losses.

NETFUND supports agri-businesses initiatives that encourage sustainable farming practices and

contribute to food security. The organisation promotes sustainable agro processing of food products

with a special focus on small and medium agro-processing enterprises and industries. This will

ensure that sustainability concerns are mainstreamed in the entire life cycle of agricultural food

products that will ensure resource use efficiency and sustainable production practices with minimum

impact on the environment and ecosystem services.

The organisation supports the creation of agricultural value chains, development of agricultural and

food processing facilities and creation of sustainable market linkages for the products. Ultimately,

this approach leads to reduction of post-harvest losses by small holder farmers, increase in

agricultural productivity index & diversified income streams for the small holder farmers.

The fund has supported the development of 15 food processing initiatives.

Some of the supported projects under this pillar are as shown below;

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a) Lake View Fisheries: Enabling Regeneration of Aquatic Life through Controlled Offshore Fish

Cage Farming

Lake View Fisheries Limited is a privately owned

company founded in 2013. It has built Kenya's first

offshore commercial aquaculture. The company’s

approach is to work across the farmed fish value

chain, from feed production down to sales and

distribution of fish, giving an opportunity for tens

thousands of local households to benefit from the

growth of the fish industry. It is distinguished from

other conventional fish farming because of its

innovative and sustainable method of fish farming.

b) Ujuzi Kilimo Soil Testing Kit: Digital Mobile Soil Testing Technology towards Improved Land

Productivity

Ujuzi Kilimo is a data-driven agronomy services company, using original and innovative technology to reinvent the soil testing and analysis process, helping farmers to improve and increase crop health and productivity across Kenya. Ujuzi Kilimo uses sensors to collect soil and farm data which is sent to a central database. Farmers get actionable, trackable information in 5 minutes via an interactive SMS platform, helping them to improve and increase crop health and productivity through tailored recommendations and agricultural information. Ujuzi Kilimo combines the farm specific data from our sensors with satellite data to additionally provide timely weather updates to farmers via SMS to ensure climate resilience.

Figure 2: Ujuzi Kilimo Soil Testing Kit

Figure 1: Use of offshore cage fish farming technology in Lake Victoria

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II. MANUFACTURING & PROCESSING

NETFUND has been on the fore front in identifying and awarding green innovations across the

47counties of Kenya and transforming them into sustainable green enterprises. The organization has

supported the replication and scale up of these technologies and best practices in beneficiary

communities through manufacturing and processing plants. This initiative has led to creation of

positive multiplier impacts at community level by increasing the resilience of these communities to

impacts of climate change and improving their livelihoods.

So far the organization has supported the development of 26 manufacturing and processing plants.

Some of the supported projects under this pillar are as shown below;

a) QTRON Industries: Developing 3D Printing Technology from Electronic Waste towards Rapid

Industrial Prototyping

Qtron Industries Limited develops and sells

3D printers, components, and materials for

3D printing systems, as well as do-it-yourself

3D printers. It offers 3D-scanning

technology, consumables, electronics, and

mechanical parts. The company also

develops products for professional rapid-

prototyping. The company contributes to e-

waste management, promotes economic,

social as well as environmental objectives

through utilising the e-waste as a raw

material to fabricate 3D Printers.

Figure 3: 3D Printer and 3D Print Out of a House

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b) MAA Briquettes: Production of Smokeless Carbonized Briquettes towards a Zero Charcoal

Economy

MAA Briquettes Ltd is an enterprise

located in Narok County and is involved

in the manufacture and selling of

carbonized briquettes made from

carbonized agro-waste biomass found

locally within the county. The briquettes

are smokeless and have high calorific

values and are therefore used as a

substitute to charcoal as clean fuel for

cooking at both household and industrial

levels.

Figure 4: Manufacture of Carbonized Briquettes in Narok County

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III. AFFORDABLE HOUSING

NETFUND is promoting the development and adoption of affordable housing materials from

waste materials. The organization has supported technology development and refinement for

producing Roofing Tiles, Cabros, Building Blocks and Fencing Posts from waste plastics. So far the

organization has supported the development of 3 enterprises that produce affordable and eco-

friendly building materials.

Some of the supported projects under this pillar are as shown below;

c) Trace Eco Solutions: Recycling Plastic Wastes into Roofing Tiles for Affordable Housing

Figure 5: Manufacture of affordable roofing tiles from waste plastics

Trace Eco-solutions is a registered limited company based in Gilgil Constituency of Nakuru County that is

involved in the production of roofing tiles and building blocks using waste plastics and sand as the main raw

materials. Trace Eco Solutions Limited targets locals who include individual home builders, County

government contractors, and private real estate developers. These are most viable potential customers for

the commodity.

Figure 6: Replacement of old worn ceramic roofing tiles with affordable roofing tiles made out of waste plastics

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IV. UNIVERSAL HEALTHCARE

NETFUND is promoting the adoption of renewable and clean technologies for use at household

level that promote reduction of indoor air pollution and improve access to clean and safe drinking

water. The Fund has supported the development of renewable energy technologies including; clean

cook stoves, bio ethanol and smokeless briquettes Production. So far the organization has supported

the development of 9 enterprises that contribute to this pillar. Some of the supported projects are as

shown below;

d) Kenya Ceramics Ltd.: Increasing the Availability of Clean and Safe Drinking Water

through Ceramic Water Filters

Kenya Ceramics Ltd is involved in the production of Ceramic

Water Filters (CWF) which are made using clay and saw dust.

The ceramic water filters are slightly different from those in

many countries around the globe as the filter comes with a pre-

filter cloth, while the filter has micron sized pores impregnated

with colloidal silver that is able to filter out bacteria and other

biological life forms. Clean water is collected in a plastic

receptacle with a lid to prevent recontamination, and a spigot

allows clean water to be drawn by the user. A complete unit

therefore comes with a ceramic filter element, plastic receptacle,

lid, spigot, cleaning brush, and user instructions

Figure 7: A ceramic water filtering unit

e) CIST Africa: Management of Water Hyacinth through use as Feedstock for Bioethanol

Production

Centre for Innovations Science and

Technology in Africa (CIST Africa) is an

enterprise located in Siaya County and is

involved in the manufacture of bioethanol

from water hyacinth that is harvested from

Lake Victoria. The ethanol does not emit

smoke and has high calorific values therefore

making it a suitable fuel for cooking and

lighting. The initiative has seen the

surrounding community adopt use of cleaner

cook stoves instead of the conventional

paraffin and three stone cook stoves therefore

greatly reducing indoor air pollution.

Figure 8: Use of locally produced bioethanol in clean cook stoves

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2.2 CONTRIBUTION TO CLIMATE CHANGE

The impacts and effects of climate change has affected Kenya as evidenced by the erratic weather

patterns characterized by devastating floods and cycles of droughts which have become more

frequent with increasing intensity. In response to these challenges, the country‟s Climate Change Act

2016 provides a good legal framework for addressing climate change. The country has developed the

Green Economy Strategy and Implementation Plan (GESIP), National Climate Change Response

Strategy (NCCRS 2010), National Adaptation Plan (NAP), Nationally Determined Contributions

(NDCs) and is in the process of developing the National Climate Change Action Plan (NCCAP

2018-2022) which provides a vision for low carbon and climate resilient development pathway.

Below is a description of how NETFUND‟s initiatives contribute to climate change mitigation and

adaptation;

2.2.1 CLEAN TECHNOLOGIES

To sustainably manage the impacts of climate change, NETFUND is implementing various

programmes and projects that promote innovative technological solutions. The NETFUND Green

Innovations Award Programme identifies and supports development of clean technologies that lead

to climate resilient and low carbon development pathway. The organisation has so far supported

clean technologies in water, energy, agri-business and waste management thematic areas. The

support involves refinement and scale up of clean technologies through business and technical

support with an aim of making them investment and market ready.

Some of the technologies

supported as shown include;

integrated solar roofing tiles, mini

hydro power production plants,

clean biofuels and energy efficient

cook stoves.

Figure 9: Examples of clean technologies supported

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2.2.2 CLIMATE FINANCING

Kenya has adopted a low carbon and climate-resilient development pathway to achieve sustainable

development by the year 2030. Financing its Climate Change Action Plan will require additional

funding to achieve its goals. To realise this, the country will need to tap into available local and

international financing opportunities. Currently many institutions especially within the sector are

faced with challenges of accessing international climate finance with respect to; selection, designing

and implementation of climate change projects and programs in line with the relevant standards.

This is also a time consuming process that requires a high level of coordination and technical

expertise.

In response to the above challenges, NETFUND has developed a project to “Support the

Implementation of Kenya’s National Green Economy Strategy through the Development of

Low Carbon Projects and Resource Mobilization”.

The overall aim of this project is to build the Country‟s capacity to access climate financing. This will

be achieved through building the capacity of the Inter-Ministerial Resource Mobilization Committee

(RMC) as well as development of investment-ready low carbon and climate resilient project concept

notes and proposals that will be submitted to various climate change financing streams. The projects

that will be developed through this initiative are expected to contribute 20% of the country‟s climate

change funding needs and will also aid in the attainment of the country‟s Nationally Determined

Contributions (INDC) by reducing national carbon emissions to 10.07 MtCO2e (25.04 %) of the

abatement potential.

The organisation is also developing a sustainable financing programme for green micro small and

medium enterprises (MSMEs) to access affordable funding instruments to scale their ventures. The

programme is being developed jointly with the African Development Bank (AfDB) under the

African Climate Change Fund (ACCF) and will be submitted to the Green Climate Fund (GCF) for

funding.

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2.3 PLASTIC BAGS AND LOGGING

NETFUND is implementing a number of programmes and initiatives aimed at addressing the

plastic bags and tree logging challenges in the country. Through the NETFUND Green Innovations

Award Programme, the organization provides alternative and sustainable cleaner solutions to

addressing the above challenges including;

a. Promotion of eco-friendly shopping bags made from recycled paper and water hyacinth,

banana fibre as the raw materials.

Figure 10: Banana fibre products

Figure 11: Shopping bags made from water hyacinth and recycled paper

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b. Promotion of alternative cleaner energy sources for cooking and lighting

Figure 12: Carbonized smokeless briquettes

c. Promotion of alternative and affordable building materials to substitute wood and timber

Figure 13: Furniture and fencing posts made from recycled waste plastics

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3 STATUS OF IMPLEMENTATION OF KEY INITIATIVES

3.1 NETFUND GREEN INNOVATIONS AWARD

PROGRAMME ALIGNMENT TO BIG 4 PILLARS ALIGNMENT TO SDGS

Food security

Universal Healthcare

Affordable Housing

Manufacturing & Processing

SDG 2 Zero Hunger

SDG 6 Clean Water and Sanitation

SDG 7 Affordable and Clean Energy

SDG 13 Climate Action

NETFUND-GIA is an annual flagship programme of NETFUND that promotes green growth and

address the impacts of climate change through efforts that will contribute to a low carbon and

climate resilient development pathway. Transitioning to a low carbon climate resilient development

pathway can address future risks, thereby improving Kenya‟s ability to prosper under a changing

climate while reducing the emissions intensity of a growing economy. The overall goal of the

programme is to promote green growth through recognition and adoption of innovations that

reduce the effects of climate change.

The specific objectives are:

i. To enhance public awareness on green innovations

ii. To promote a favourable environment for green growth

iii. To support the development of Green Enterprises

Since the programme inception, there has been increased countrywide participation in the awards

programme. The entries are mainly in the four thematic areas which include water, renewable

energy, waste management and agribusiness. To date more than 13,027 entries have been received

during the three phases of the awards implementation.

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Key Achievements of the Programme

a) Innovation Entries and Awards

Since its inception, there has been a progressive increase in entries received from all regions of the

country. The Rift Valley region accounted for the highest level of participation at 19%, while the

lowest being North Eastern region with 5% level of participation. Nearly half of all the entries 49%

were from the agri-business thematic area with the energy category having the lowest level 15% of

participation.

The info graphics below shows participation in the programme by region and thematic areas of

focus.

GIA Phase 1:

1,500

GIA Phase 2:

1,792

GIA Phase 3:

9,735

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In terms of gender representation, women led initiatives accounted for 33% while male led

initiatives were at 67% of the total entries.

The organisation has rewarded best practices and innovations spearheaded by schools, civil society

organizations, individuals, women groups, small, micro and medium enterprises.

Figure 14: First Lady Margaret Kenyatta awarding one of the winners during an awards gala

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b) Incubation of Viable Green Enterprises

Viable green MSMEs have taken through the NETFUND incubation programme where they have

been provided with technical and business support services to refine their innovations. Based on the

analysis of gaps and challenges encountered by green start-ups, NETFUND incubation model was

designed to enhance the success of early stage start-ups by providing the necessary support during

the pre-incubation, incubation and post incubation stages.

The diagram below shows the phases of NETFUND incubation programme.

Some of the key challenges that the model addresses include: inadequate technical support for

prototyping, technology and product refinement; limited access to early stage financing for proof of

concept, testing and piloting of business models; inadequate business management capacity for the

innovators to enable them run the enterprises and set up key processes and structures; and low

market penetration due to lack of information on existing local and international market

opportunities and consumer needs.

c) Incubation Services

Based on the above challenges, the incubation centre was designed around eight major services

identified as being essential for successfully supporting green innovations to be sustainable

companies.

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The following diagram shows a summary of the key services offered by the centre.

d) Financing and Market Opportunities

During and after incubation, green enterprises that demonstrated potential for growth received seed

capital in terms of grants, market and investor linkages to commercialize their products. To date

more than 100 projects have been supported through technical and business development to refine

and scale their initiatives. Additionally, the incubation centre has organized annual investors‟ forums

and exhibitions to showcase the innovations to potential financiers, customers and strategic

partners.

Figure 15: Manu Chandaria giving remarks during NETFUND investors’ forum

Figure 16: One of the innovators pitching during NETFUND investors’ forum

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The pie chart below shows forms of financial support that the innovators have received through the

programme.

The organisation is developing a sustainable financing mechanism to support its projects and

beneficiaries. The organisation has been providing financial support to its projects through a grant

making mechanism and with more than 100 projects having received funding from the organization.

e) Partnerships

The programme has attracted partnerships from public, private and civil society sectors and has

more than 21 partners. The portfolio of partners includes; financing, implementing and sponsoring

partners. The partners have supported various components of the programme leading to improved

programme delivery and greater impact.

Table 1: Key partners of the Green Innovations Award Programme

4%

19%

77%

Innovators Follow On Capital

LOAN

EQUITY

GRANT

Financing Partners

•Embassy of Sweden

•United States International Development Agency

•Worldwide Fud for Nature

•Hivos

•Japanese International Cooperation Agancey

•SLOVAK Aid

•Africa Climate Change Fund

•African Development Bank

Implementing Partners

•National Enivironment Management Authroity

•Kenya Forest Service

•Kenya Wildlife Service

•Postal Corporation of Kenya

•Daystar University

•Kenya Agricultural and Livestock Research Organisation

•Kenya Industrial Research and Develoment Institute

•Women Entreprise Fund

Sponsors

•Bamburi Cement

•Kenya Commercial Bank

•Energy Regulatory Commission

•Jomo Kenyatta Foundation

•Pollination Fund

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f) Awards and Recognition

NETFUND participated in the University Business Incubator (UBI) 2017 Global Ranking. The

UBI Global identifies and gives recognition to the best incubators and accelerators who then

leverages the ranking to grow, gain funding and increase visibility. During the 2017 ranking, the

NETFUND incubation programme was awarded the Top Challenger Award for Africa. This is in

recognition of the impact and performance of the programme in comparison to its peers regionally.

The award is a vindication of the hard work and diligence of NETFUND in delivering value to

budding Kenyan entrepreneurs.

Figure 17: A snapshot of NETFUND’s regional position in Africa

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As a result of the support NETFUND provides to its beneficiaries, some of them have been

recognized and awarded with grants in various programmes as shown below;

Figure 18: Examples of awards won by NETFUND beneficiaries

Magiro Hydro Electricity challenge winner of the SEED award 2015

ICOSEED Entreprises challenge winner of the SEED award 2016

Strauss Energy named 1776 “People’s Choice” winner 2015

Sweet N Dried Kaves) received funding for the solar dryerthrough the Kenya Value Chains Enterprises.

Stawi Food Industries was ranked among Top 30 under 30 entrepreneur who is making a great impact across Africa by Forbes Africa Magazine

2014

Envibuzz Consule Ltd won grant of $ 5000 from the Tony Elumelu Foundation 2017

Sweet N Dried recognised as African Development Bank (AfDB) High 5 Promising startups- Feed Africa Category with a grant of USD 1,500.

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3.2 ENHANCING CLIMATE RESILIENCE AND NUTRITION UPTAKE

THROUGH VALUE ADDITION TO THE MANGO FRUIT IN KITUI

COUNTY

PROGRAMME ALIGNMENT TO BIG 4 PILLARS ALIGNMENT TO SDGS

• Food security

• Manufacturing & Processing

SDG 2 Zero Hunger

SDG 13 Climate Action

In 2014, NETFUND in collaboration with Green Africa Foundation, received support from the

Intergovernmental Authority for Development (IGAD) under the Applied Research in Dry lands

Grant Facility (ARDGF) and the Government of Kenya (GoK), to streamline the value chain of the

mango fruit in Kitui County.

The project was aimed at enhancing the resilience of the dry land communities in Kitui County

through increased income earned from mango fruits. This was achieved through piloting a new

approach to mango value addition to address the postharvest losses that were being experienced by

the small holder mango farmers. The technology entailed putting in place mechanisms for

conversion of the mango fruit into powder form in order to enhance its shelf life and its functional

value. The end products included; mango flour, fortified flours (maize, sorghum, millet and cassava),

and dried mango flakes. The powder is rich in irons, vitamin A and E and helps combat acidity and

improve digestion. The advantage of mango powder is that it can be used in many different ways

including direct consumption, or used as spice in salads, cereals and toast. The powder can be mixed

with other kinds of flour and used for baking bread, making chapattis, and porridge.

In this sense, the project contributed to reinforcing food security in the arid and semi-arid

lands and enhancing the nutrition value of the local staple food, which is mainly based on

cassava, sorghum, millet and maize.

The purpose of the project was to improve value addition of the mango fruit through mango

powder technology with the specific outputs being:

i. Mango powder technology introduced and disseminated

ii. Capacity building of women groups on mango powder processing and marketing

iii. Awareness on mango powder products and nutritional value created

iv. Improved value chain management for mango fruits

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Achievements:

a) Development of the Mango Powdering Technology

NETFUND was to procure the Refractance® technology developed by Dr. Caleb Nindo of

Washington University, but acquisition of the technology proved to be expensive. This challenge

however provided NETFUND an opportunity to reverse engineer the complete processing line

which included; Hybrid biomass and electrical dryers for crisping the mangoes©, Hammer mills,

Disk mills, Solar driers, Mixers, Grain Destoners among other equipment.

b) Installation of the Mango Processing Plants and Training on the

Powdering Technology

Prior to the installation, the project implementation team carried out a socio- economic baseline

study of Kitui County to establish the baseline indicators of key variables in the mango value chain

which was meant to inform the basis of the project intervention. The baseline survey also informed

the proper identification of suitable and representative sites for the set-up of the mango processing

plants.

The 3 pilot plants were successfully set up in in three sub counties of Kitui namely: Mwingi West,

Mwingi North and Kitui Central and are in full operation. The installation of the pilot plants was

carried out alongside the training of the operations and maintenance teams for each of the plants to

ensure smooth running of the machinery.

Figure 19: Women Mango Farmers Engaged in Value Addition to the Mango Fruit

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c) Production of Samples and First Batch of Fortified Flour

NETFUND oversaw the production of first samples of powder and the first batch of fortified

flours. The production process followed standard operating procedure and formula developed in

collaboration with food technologists from the Kenya Industrial Research and Development

Institute (KIRDI). Different types of fortified flours were produced i.e. fortified maize, sorghum,

millet and cassava flours.

The purpose of producing the first powder samples and fortified flour was to subject them to

analytical tests with the aim of establishing their physical and chemical properties as well as presence

of biological life that could affect storage and consumption of the products. The results obtained

from the tests indicated that powder samples and fortified flour products were fit for human

consumption with; no presence of bacterial or other biological life, high energy values, and low

moisture content with the allowed limits of micro and macro elements. The fortified sorghum flour

has since received the KEBS mark of standardization while the other remaining flours are in the

process of certification.

d) Training of Farmers on Best Practices of Mango Farming

NETFUND sought to build the capacity of the mango farmers on mango value chain management

by designing and training them on best practices of mango production.

The training involved the development of a Training Mango Booklet and a Mango Farm Spray

Programme followed by practical and demonstrative trainings at each of the sub-counties with an

average of 600 mango farmers trained and provided with planting materials. The training was carried

out hand in hand with the establishment of mango tree nurseries and the planting of 6,000 mango

trees in the 3 sub-counties of Kitui County.

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The project has attracted additional donor interest from the Embassy of Sweden and Slovakia which

have so far supported scale up of the processing plants and refinement of the products.

The project has given the mango farmers in Kitui County greater latitude in marketing their produce

by eliminating dependence on the mango fruit‟s natural lifecycle. In addition, the project has

contributed to enhancing food security in the region by making the seasonal mango fruit and its

products available for consumption throughout the year.

The project has therefore presented an opportunity for building resilience to the impacts of climate

change, nutritional uptake and alleviating poverty among the local population.

Figure 20: HE Dr. Julius Malombe Kitui Governor touring the mango processing plants

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3.3 SUPPORTING THE IMPLEMENTATION OF KENYA’S NATIONAL GREEN

ECONOMY STRATEGY THROUGH THE DEVELOPMENT OF LOW

CARBON PROJECTS AND RESOURCE MOBILIZATION

PROJECT ALIGNMENT TO BIG 4 PILLARS ALIGNMENT TO SDGS

• Food security

• Manufacturing & Processing

SDG 2 Zero Hunger

SDG 8 Decent work and economic growth

SDG 13 Climate Action

The overall aim of the project is to build the Country‟s capacity to access climate financing. This will

be achieved through building the capacity of the Inter-Ministerial Resource Mobilization Committee

(RMC) as well as development of investment-ready low carbon and climate resilient project concept

notes and proposals that will be pitched/ submitted to various climate change finance streams.

The main outputs of this project is increased capacity of the Inter-Ministerial Resource Mobilization

Committee, nine (9) climate change project concept notes and three (3) large bankable project

proposals developed and pitched to potential funders.

Successful implementation of this project is expected to establish a highly competent and effective

resource mobilization team that will sustainably ensure that the Country benefits from available

climate finance streams. In addition, the projects developed through this initiative are not only

expected to contribute 20% of the country’s climate change funding needs, but also aid the

attainment of the country‟s Nationally Determined Contributions (NDCs) by reducing national

carbon emission to 10.07 MtCO2e (25.04%) of the abatement potential within the forestry sector.

Achievements:

a) Capacity Building of Inter- Ministerial Resource Mobilization

Committee

Building the capacity of the Resource Mobilization Committee (RMC) was one of the key

components of this project. Key activities under this component included capacity needs assessment

and training the committee to enhance the identified capacity gaps. An Individual consultant was

contracted to facilitate this component.

The consultant undertook the capacity needs assessment in December, 2017. Some of the capacity

major needs identified were: limited understanding of the climate change finance landscape; limited

capacity to develop bankable proposals; institutional and governance issues; and Donor mapping

and engagement among others.

The training covered climate finance and Resource Mobilization, Donor Mapping, requisites and

Engagement, Baselines and Theory of Change, Project Design and Management, and Coordination

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Mechanism and Modalities. During the last day of the training, the RMC members had an

opportunity to reflect on the future of the committee. The committee also developed a draft action

plan

Next Steps

a) Development of Bankable Proposals for Climate Financing

Kenya is poised to realize the transition to a green economy. In the context of a myriad of sources

of climate finance, it is increasingly important for the country to be able to directly access resources

from different sources, and then blend and combine these resources at the national level in order to

access a wider range of financial instruments.

Under this component, the RMC will be supported to conceptualize, design and develop bankable

climate change projects that would attract funding from various global institutions. A total of nine

(9) concepts and three (3) full proposals will be developed for pitching to donors. The projects and

concepts will be developed in the following three broad areas that have been identified as critical in

responding to climate change issues as outlined below;

i. Forestry

According to an assessment done by Climate and Development and Knowledge Network (CDKN)

in 2012, reduced deforestation and increase in the carbon stock of trees will contribute to the decline

in emissions and consequently the cumulative abatement potential of 40.2 Mt CO2 by 2030. The

Government‟s goal of attaining 10% tree cover by 2030 from approximately 6% in 2012, signals a

large scope for possible low-carbon interventions. Halting deforestation, coupled with ambitious

forest restoration and reforestation initiatives could increase net forest cover and make Kenya‟s

forests a net sink of CO2 by 2030, rather than a significant emitter. Key targeted low carbon actions

that would be promoted by the project will therefore include; the review and contribution of related

activities and ultimately, developing investment ready concept notes to attract international climate

finance in the forestry sector.

ii. Green Innovations

Rising to the challenges of climate change requires innovative application of technology and

innovations to meet the local needs and risks. According to the National Adaptation Plan 2015-

2030, supporting innovations and development of appropriate technologies is critical for climate

resilient development. In addition, micro small and medium sized enterprises in Kenya operated by

the youth are at the forefront of innovation in technology and require adequate support to scale up

and increase uptake of these innovations. Concepts under this thematic area will address the current

gaps in the innovation and green business ecosystem including; technology development, financing

and capacity building.

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iii. Climate SMART Agriculture.

The agriculture sector, including livestock, is very sensitive to climate change, meaning that

agricultural systems will need to adapt to ensure provision of adequate food for a growing

population while increasing export to generate foreign exchange. At the same time, the sector is a

large and growing greenhouse gas emitter, responsible for about 30% of Kenya‟s emissions as per

2010. About 90% of these emissions were generated by the livestock sector alone. Concepts under

this thematic area will focus on climate-smart agricultural practices that reduce climate vulnerability,

emissions and improve agricultural production potential.

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4 RENEWABLE ENERGY PROGRAMME

This programme seeks to promote renewable energy technologies and innovations that address

energy demand in the country. The objective of the programme is to reduce usage of traditional

three stone cook stoves by 30%. Key initiatives include; supporting counties in policy formulation as

well as developing plans to expand access to clean cooking technologies, working with communities

in sensitization and promotion of clean cooking technologies. It is expected that these technologies

will contribute towards bridging the energy gap in the country.

Achievements

a. Research on Renewable Technologies

Research has been carried out on the „Factors influencing household adoption of renewable

energy technologies in Kenya,’ 3 counties namely; Tharaka-Nithi, Narok and Elgeyo-Marakwet.

A report has been published and findings presented to stakeholders.

b. County Engagements

Counties have been engaged through a sensitization forum involving county ministers of energy and

environment on the need to mainstream renewable energy technologies in the County Integrated

Development Plans (CIDPs). Consequently, some counties have identified their renewable energy

priorities for implementation.

Figure 21: County environment ministers during the renewable energy stakeholder workshop

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Next Steps

The steps of the project will entail the following;

a. Building the capacity of counties in line with the gaps identified during the county

stakeholder consultation workshop.

b. Holding Development Partners‟ roundtables to share county priorities and explore areas of

possible partnerships

c. Develop concept notes to support he counties to; transition from 3 stone to more efficient

cook stoves and; to efficiently produce and harvest of biomass energy sources

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5 GREEN GROWTH RESEARCH PROGRAMME

PROJECT ALIGNMENT TO BIG 4 PILLARS ALIGNMENT TO SDGS

• Food security

• Universal Healthcare

• Affordable Housing

• Manufacturing & Processing

SDG 2 Zero Hunger

SDG 7 Affordable and Clean Energy

SDG 13 Climate Action

NETFUND is actively involved in research aimed at promoting evidence-based programming and

policy development for environmental management in Kenya. The organization not only applies

research findings to design innovative projects that support environmental management, but also

disseminate the research findings and best practices to policy makers, project developers and other

researchers in the country. The overall objective of the programme is to promote evidence-based

programming and policy development in environmental management.

Achievements:

A. Expanding access to clean energy in developing countries: The role of off-grid mini

Hydro power projects in Kenya” funded by Embassy of Sweden (EoS) in 2017.

Catherine Ndegwa1, Joy Juma2, Michael O. Okok1, Ezekiel Ormat1 and George Ruchathi Mwaniki1*,

This paper presented the important role of off-grid mini-hydro powers in enhancing access to

electricity and the challenges facing such initiatives based on case studies we conducted on three

local off-grid mini hydro power projects in the country.

The study integrated qualitative and quantitative methodologies to generate and analyse the data

collected from Magiro Power, Diguna Mission Centre and Boston school. The findings indicate that

mini-hydropower plants deliver important outcomes to institutions and rural communities including

improved energy access, improved health, environmental conservation and economic benefits.

Diguna mini-hydro located in Tinderet, Nandi County generates up to 500kwh of electricity per day

saving the institution up to Kes. 8.4 million Annually.

Magiro Hydro Power project supported by NETFUND generates 250kwh in Muranga County and

serves a mini grid of 250 households. This has replaced kerosene for lighting therefore reducing in-

house air pollution. 100% of the respondents reported reduction in eye irritation, 94% reported

reduction in chest tightness and 93% reported reduction in wheezing due to migration to the cleaner

hydro power energy. The project has resulted into financial savings in household energy costs where

each of the connected households saves an average of KES 36,500 annually.

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Figure 22: Magiro Mini hydro power in Murang’a County

B. Investigating the potential of Water Hyacinth as a Feed Stock for Production of Bio

ethanol for Household Cooking Energy: Case of Yiro West Sub-location

This research project was intended to explore the potential of utilizing the water hyacinth to produce

bioethanol and the possibility of households to adopt the biofuel, approaches that are expected to

immensely contribute to eradication of the noxious weed. This study was important for the

decisions regarding the replication and scale up of the innovation. The research was funded by

World Wide Fund for Nature (WWF) and the Energy Regulatory Commission (ERC).

The results informed NETFUND on the decision to upscale the initiative into a commercial

harvesting of the water hyacinth for production of biofuel which promises manifold benefits;

managing the water hyacinth in Lake Victoria, providing affordable clean fuel for households,

reducing carbon emission by eliminating use of kerosene, and creating employment opportunities

hence contributing to the country‟s green economy strategy.

Figure 23: Bioethanol analysis and user interviews

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C. Supported the Education for Sustainable Development Policy 2016

The National Education for Sustainable Development (ESD) policy is one of the policies that

NETFUND identified to support under the NETFUND GIA. This support was in the form of;

i. Reproduction of 200 copies of the policy for dissemination

ii. Sensitization of county executive committee members (CECs) for environment. NETFUND

collaborated with the Ministry of Environment and Forestry and the Council of Governors

(CoG) to undertake a sensitization workshop for the CECs

D. NETFUND Resource Centre

The NETFUND Resource Centre serves as a central information and data domain which allows

individuals and affiliates to obtain environmental research information. This information is

generated by research and learning institutions, government agencies and other organizations.

NETFUND resource centre taps into this information through a portal and a physical library

whereby information can be accessed by staff and the wider public.

Link to the online resource centre: http://knowledge.netfund.go.ke/about-us/

Figure 24: Homepage of the online resource centre

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6 IMPACTS CREATED

NETFUND programmes have contributed to up scaling and replication of climate resilient and low

carbon development solutions. Additionally, the programmes have contributed to poverty reduction

through creation of green jobs especially among the youth and women who are actively involved in

development of green technologies and products.

The supported projects have great potential to create multiplier impacts at the community and

national level through increased access to clean and safe water, affordable energy, improved

agricultural productivity and creation of green jobs for the youth and women.

Some of the impact the organization has created include;

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7 CHALLENGES AND RECOMMENDATIONS

The organisation has faced various challenges that in some cases hinder the delivery of the

corporation‟s mandate. These challenges include the following:

i. Limited financial resources to achieve its mandate. The organisation was established with the

intention of being the financing arm of the Ministry in charge of environment at the time.

This function has however been limited due to the minimal allocation of budgetary resources

from the ex-chequer.

ii. Limited institutional capacity: This includes limited internal and external capacity to access

climate finance to support environmental interventions and limited capacity to monitor and

report on the organisation‟s contribution towards a low carbon climate resilient economy.

iii. Trust Deed and Categorization: NETFUND is yet to be categorized by the State

Corporations Advisory Committee (SCAC) as a financial institution. In order to achieve this,

there is need for the registration of the Trust Deed to enable subsequent process of

categorization.

The organisation recommends the following to address the above challenges:

i. Support from the Ministry of Environment and Forestry to obtain a significant budgetary

allocation to achieve its mandate. The organization is also working on the establishment of a

revolving and endowment fund to ensure it is financially sustainable in the long term.

ii. Support NETFUND in strengthening its institutional capacity to deliver on its mandate

iii. Trust Deed and categorization: NETFUND would require the Ministry‟s intervention to

facilitate the drawing up of the Trust Deed before registration.

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8 PLANNED AND ONGOING PROGRAMMES:

NETFUND has designed programmes that are in line with its mandate and various national and

sector targets, plans and priorities. Key on-going projects and programmes are as shown below;

Name of project

/Programme

Expected Outcomes Date of

Completion

NETFUND Green

Innovations Awards

Phase 3

The purpose of the

programme is to

promote green growth

through recognition

and adoption of

innovations that reduce

the effects of climate

change.

Expected Outcomes of the project include;

Public awareness in green growth

initiatives enhanced. Key activities that will

be undertaken under this programme creating

awareness for innovations and best practices,

development of best practice magazine for

sharing knowledge on best practices, scouting

and identification of best practices and

innovations, engagement of partners,

recognizing and awarding of best practices as

well as up scaling of best practices.

Enabling environment for green growth

promoted. To achieve the above outcome,

the following activities will be undertaken;

support development of green growth

policies, strategies and plans; establishment of

a repository of green growth knowledge and

setting up of sustainability structures for the

programme.

Environmentally friendly enterprises

supported. Some of the activities that will be

conducted to achieve this outcome include;

establishing of market and technical viability

of selected green enterprises; business and

technical support to green enterprises;

mentorship and coaching; establishment of

business structures; product and technology

development; linkage to market, showcasing

and financing opportunities.

2019

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Implementation of

National Green

Economy Strategy in

Kenya through Low-

Carbon projects and

Resource Mobilization.

The project’s main goal

is to facilitate resource

mobilization and

effective

implementation of

flagships projects that

would propel the

country towards

achieving a low carbon

economy.

Expected Outcomes of the project include;

Increased funding for spearheading the

implementation of the country's green

economy strategy. This outcome will be

achieved by developing project concept notes

and proposals as well as fundraising for the

projects and programmes.

2018

The Renewable Energy

Programme.

The project’s main goal

is to promote

renewable energy

technologies and

innovations in the

country

Expected Outcomes of the project include;

Renewable energy technologies are

mainstreamed in counties

Communities sensitized on the need to

adopted renewable energy technologies

Resources mobilized through a donor round

table to support renewable energy projects in

the country

2018

Determining the effect

of solar & biomass

drying technologies on

the physical &

chemical stability of

mango powder during

storage time

The aim of the

proposed project is to

test the application and

effect of solar and

biomass drying

technologies on the

physical and chemical

Expected Outcomes of the project include;

Increased value of local agricultural

products; key activities that will be

conducted include laboratory research to

establish chemical stability of mango powder.

Post-harvest losses reduced. This will be

achieved through use of the biomass drying

technology to add value to the mango

projects.

Increased employment and incomes for

mango farmers. This will be achieved

through engagement of small holder mango

2018

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structures of dried and

powdered mango he

physical & chemical

stability of mango

powder age time

farmers as suppliers of raw materials to the

mango processing plant.

NETFUND green

enterprise fund.

The overall goal of the

proposed programme

is to provide easier

credit access to green

Micro, Small and

Medium Size

Enterprises (MSMEs)

in Kenya.

Expected outcomes of the project include;

Increased access to affordable credit

mechanisms by green businesses. Key

activities that will be undertaken under this

outcome include; identification of viable

green small, micro and medium enterprises;

fundraising and provision of credit to

MSMEs.

Increased commercialization and scale up

of green businesses. This outcome will be

achieved by providing business and technical

support services to green MSMEs to scale

their businesses; provision of seed capital and

commercialization of viable green MSMEs

Increased employment opportunities and

income for the youth and women. This

outcome will be achieved through the job

opportunities that will be created by the

MSMEs.

2022