Mogadishu, Somalia – KIMS Microfinance has secured a landmark $1 million Sharia-compliant investment aimed at expanding access to clean and affordable energy for Somali households and small businesses. The deal, facilitated through Acumen’s Hardest-to-Reach (H2R) initiative and supported by the United Kingdom, marks a critical step in bridging Somalia’s energy gap.
The tailored financing package combines flexible repayment terms with grant support, ensuring it is accessible to Somali families and entrepreneurs often excluded from traditional financing systems. By structuring the investment in compliance with Islamic finance principles, the initiative also aligns with local cultural and religious values, helping it reach more underserved communities.
Somalia remains one of the least electrified countries in the world, with many families reliant on costly and polluting diesel generators or traditional fuels. The infusion of capital into KIMS Microfinance is expected to accelerate the adoption of solar systems and other renewable energy solutions, lowering costs for households while creating opportunities for small enterprises to thrive.
Officials involved in the deal emphasized that clean energy access is not only an environmental necessity but also a driver of resilience and economic growth. By reducing dependence on fossil fuels and widening access to affordable energy, the investment will contribute to better livelihoods, improved education outcomes, and more inclusive development across Somalia.
This partnership positions Somalia to make progress toward its renewable energy ambitions while demonstrating how innovative finance, rooted in local realities, can unlock transformative impact in fragile contexts.
