Removal of Barriers to Energy Conservation and Energy Efficiency in Small and Medium Scale Enterprises

Project Summary

The outcome of this project will be a reduction of CO2 emissions resulting from increased energy efficiency within Kenya’s small and medium scale enterprises. This will be accomplished by removing capacity and financial barriers through formal and on the job training as well as through the introduction of new financial mechanisms. A series of demonstration retrofit projects will be carefully selected, and financing obtained to complete the energy efficiency demonstrations. Full cost-recovery for the demonstrations will be ensured to prove to SME in Kenya that improving energy efficiency can be profitable. The project will enable entrepreneurial energy and engineering firms to emerge as viable energy service companies (ESCOs) which will be prepared to carry out the investments in improved energy efficiency on a sustained basis. After successful project completion and barrier removal, the total CO2 emission reduction will be 4.2 million tonnes.

Project Details

GEF Project ID
Project Type
Full-size Project
Focal Areas
Funding Source
GEF Trust Fund
Implementing Agencies
United Nations Development Programme
Executing Agencies
Kenya Association of Manufacturers for the Ministry of Industrial Development
GEF Period:
GEF - 2
Approval Fiscal Year:


Project Preparation Grant Amount
40,000 USD
GEF Project Grant
3,193,000 USD
Co-financing Total
5,090,000 USD
GEF Agency Fees
Total Cost 8,323,000.00 USD

Project Timeline

Received by GEF
Preparation Grant Approved
01 Jul 1998
Concept Approved
01 Jul 1998
Project Approved for Implementation
20 Dec 1999
Project closed
01 May 2004