Commercial Bank of Africa (CBA) and Agence Française de Développement (AFD) have signed a €10 million (Sh1.08 billion) funding agreement for renewable energy projects in Kenya.

This money is to be loaned to businesses, interested in investing in renewable energy technologies which includes small hydro, biomass, biogas, solar, geothermal and energy efficiency measures.

The loan is part of the large regional Sustainable Use of Natural Resources and Energy Finance (SUNREF) programme, aimed at promoting finance for renewable energy and energy efficiency projects in East Africa via local banks.

Strathmore University is one of the beneficiaries of this programme. It recently signed a power purchase agreement with Kenya Power, by using a loan acquired from AFD in 2013 to set up solar panels at a price of Sh133.9 million ($1.3 million) according to The Star news.