Absa Bank Kenya, the United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) have launched a financing partnership to unlock investment in solar-powered cold storage and tackle $2.1 billion infrastructure gap in Kenya.
The portfolio guarantee arrangement will allow Absa to expand asset-based lending to agribusinesses investing in cold chain solutions, targeting post-harvest losses affecting horticulture, dairy, fisheries and meat production.
Under the programme, Absa will provide financing of between $500,000 and $2 million to agricultural value-chain players, including aggregators, exporters and equipment suppliers, enabling deployment of solar-powered storage systems for smallholder farmers and businesses.
UNCDF’s risk-sharing guarantee will reduce lending barriers in a sector that has historically struggled to attract capital due to high upfront costs and perceived investment risks, while UNDP will provide technical support and policy coordination.
Kenya faces significant agricultural losses, with about 40% of produce lost annually due to inadequate post-harvest handling and storage infrastructure.
Absa Business Banking Director Renato D’Souza says the partnership would accelerate climate-smart financing by combining renewable energy solutions with agricultural value-chain investment to improve food security, reduce losses and boost farmer incomes.
UNDP Kenya Resident Representative Dr. Jean Luc Stalon said expanding sustainable cold chain infrastructure presents both an economic and climate opportunity by strengthening rural livelihoods, reducing emissions and improving resilience across agricultural value chains.
The partnership builds on earlier pilot programmes that demonstrated demand for solar-powered cold storage, with phase one showing potential benefits for more than 60,000 farmers and the creation of about 1,200 jobs.