In the heart of Western Kenya, Rafode Limited is not just a microfinance organization; it’s a lifeline for thousands of rural households and small businesses. With a mission to increase access to renewable energy and foster economic empowerment, Rafode is pioneering innovative solutions for low-income earners.
Recognizing the significant impact of clean energy solutions, Rafode focuses on providing solar home systems and efficient cookstoves like the Jikokoa cookstove to its customers. By offering these products on credit, Rafode empowers communities to adopt sustainable energy solutions while also boosting local economic development.
Bridging the Energy Gap
Rafode’s impact begins with sourcing the solar home systems and efficient cookstoves directly from manufacturers. These products are then offered to customers on flexible credit terms, ensuring affordability and accessibility.
Impactful Solutions
Rafode’s impact is far-reaching. To date, 9,523 households have benefited from their products and services, with an estimated total benefit to these households reaching a remarkable 16,280,400. This positive impact is felt across various aspects of daily life:
Improved Health: By replacing traditional cooking methods with cleaner and more efficient cookstoves, Rafode is contributing to improved indoor air quality, reducing respiratory illnesses, and enhancing the overall health and well-being of households.
Economic Empowerment: Rafode’s credit offerings have provided a lifeline for many households and MSMEs, enabling them to invest in income-generating activities and improve their livelihoods.
Environmental Sustainability: Through the promotion of solar energy and efficient cookstoves, Rafode is contributing to a reduction in greenhouse gas emissions. The company has achieved a significant milestone by reducing an estimated 10,570 tons of CO2 equivalent emissions.
Community Impact: Rafode’s impact extends beyond product sales. 77% of their customer base resides in rural areas, demonstrating a strong focus on underserved communities. With the installation of 0.019MW of clean energy, Rafode contributes to Kenya’s renewable energy targets. Moreover, their support of 16 MSMEs underscores their role in fostering economic growth.
The positive impact of Rafode’s work is evident in the testimonials of its beneficiaries. Vivian Akinyi from Ramula-Nyakach Constituency highlighted several advantages of using Rafode’s products, including clean lighting that provides a safer and healthier alternative to traditional kerosene lamps, smoke-free cooking that improves indoor air quality and reduces respiratory issues, and flexible payment plans that make renewable energy solutions accessible to low-income households. Additionally, she noted significant savings on phone charging costs, further reducing household expenses, and emphasized how the reliable lighting has created a more conducive learning environment for children, allowing them to study for longer hours.
Sustainable Development Goals
Rafode’s impact aligns perfectly with several Sustainable Development Goals (SDGs):
SDG 1: No Poverty: By empowering low-income households with access to clean energy and financial services, Rafode contributes to poverty reduction and improved livelihoods.
SDG 7: Affordable and Clean Energy: Rafode plays a crucial role in expanding access to clean energy solutions in rural areas, promoting sustainable energy development.
SDG 13: Climate Action: By reducing greenhouse gas emissions through the promotion of efficient cookstoves and solar energy, Rafode contributes to climate action and mitigation.
SDG 8: Decent Work and Economic Growth: By creating jobs and supporting MSMEs, Rafode contributes to economic growth and decent work opportunities.
Rafode Ltd is a shining example of how a microfinance organization can make a significant positive impact on the lives of rural communities. By providing access to clean energy solutions and empowering households and MSMEs, Rafode is not only improving livelihoods but also contributing to a more sustainable and equitable future for Western Kenya.
KCV’s Support
With the support of KCV, Rafode has been able to scale its operations and reach more households, bringing the benefits of clean energy and improved livelihoods to a greater number of people. This partnership exemplifies how collaboration between impact investors and innovative enterprises can drive meaningful change and contribute to a more sustainable future for Kenya.
