Acumen, KIMS Expand Somalia Solar

Key Figures & Findings: Acumen, a non-profit impact investment fund, has committed $1 million into Somalia’s largest microfinance institution, KIMS Microfinance, to scale its off-grid solar lending operations across the country. The funding comes under Acumen’s Hardest-to-Reach (H2R) initiative and is backed by the British Embassy in Mogadishu and UK aid via the Transforming Energy Access platform. The investment is designed to expand energy access for underserved households and businesses while supporting Somalia’s transition from diesel-heavy energy sources.

Statistics & Insights: KIMS plans to use the funding to provide solar access to 17,000 individuals and 440 businesses, aiming to replace costly energy that currently averages $0.65 per kWh. The initiative also includes $250,000 in technical assistance to strengthen inventory, credit systems, and agent training.

Future Implications: If the rollout progresses as expected by Q4 2026, the facility could double, enabling KIMS to serve up to 40,000 clients by 2028. The initiative may also help shape Somalia’s broader regulatory framework for solar lending and Islamic finance integration.

Source: Acumen news