The Challenge Fund is a programme set up by Aqua for All and its partners Rural Focus and Smart People Africa to help address structural barriers that limit small-scale water service providers (WSPs) in Kenya from qualifying for commercial finance for micro- and small water infrastructure projects.
The programme is designed to enhance the creditworthiness of small-scale water service providers making them more attractive to investors. This will support the expansion and improvement of water services, particularly in peri-urban and rural areas. By providing technical assistance, targeted capex grant incentives, and leveraging (fintech) technology, the Challenge Fund aims to support 150 small-scale service providers in accessing KES 330 million (~ 2.5 million EUR) in commercial finance, ultimately benefitting 200,000 people with new or improved access to water services.
The Stone Family Foundation are providing a results-based grant to support the pipeline development of the Challenge Fund. The aim of this grant is to ensure a number of strong WSPs are being identified to onboard onto the Challenge Fund platform. This is necessary to demonstrate the ability of the Challenge Fund to address structural barriers and encourage greater finance flows from commercial financiers to WSPs.