Introduction and Background: While post-harvest loss in Kenya, estimated at more than 40%, is predominantly seen as a food security and livelihoods issue, it is also a substantial greenhouse gas (GHG) emissions issue. The decomposition of organic matter is a significant source of methane emissions. This is largely due to poor harvest and handling techniques, inadequate cold-storage facilities, unawareness about cold-chain services, a lack of financing, well-trained workforce, and a poor enabling environment.
Kenya’s updated NDC outlines the importance of delivering the country’s Climate Smart Agriculture (CSA) Strategy and includes a specific target for reducing post-harvest losses. The Project aims to enable a market driven expansion of harvest-to-market solar-powered cold-storage services, and thus reduce post-harvest losses. The Project will subsequently lead to a reduction in emissions from post-harvest losses and will assist Kenya in achieving their NDC commitments.
Project Goals and Approach to Transformational Change: The Project aims to catalyse a transition towards the widespread provision and adoption of solar-powered cold-storage in Kenya. It will deploy 1,000 solar-powered cold stores using natural refrigerants of low GWP in rural and peri-urban areas, over the 5 years of implementation. This is expected to lead to between 3900 tons to 5000 tons of produce preserved by the end of the Project Implementation Phase. The Project targets markets and cooperatives in the counties of Meru, Nakuru, Makueni County, and Lake Turkan. Through increased incomes and food security, 60,000 small-holder farmers are expected to benefit directly from the Project.
Through the Project’s sustainable impact, markets and cooperatives in Kenya are expected to be well informed about the availability and mechanics of solar-powered cold-storage and recognise its effectiveness for post-harvest management. The specific financial mechanisms will nearly double the capacities of installed cold stores in the 10 years following the end of the project, thereby leading to long-term transformational change in the cold-storage sector in Kenya.
Project Components and Support Mechanisms: The Project aims to facilitate a market driven expansion of harvest-to-market, solar-powered cold-storage services.
FC component: The project will provide a comprehensive financial structure that incorporates various financial mechanisms and sources of funding: a Concessional Loan deployed directly by UNCDF to Technology Providers and Operators, a Commercial Loan Guarantee covering 50% risk coverage for loans provided by banks and financial institutions also to the same beneficiaries of the concessional loans, and a tariff support facility which will serve a de-risking mechanism to the uncertainty of operational cashflow of Operators to honour their obligation due to the seasonal nature of the value chain.
TC component: The TC aims to improve the regulatory environment for cold-storage service providers and lead to the introduction and usage of an MRV system to track the reduction of harvest losses. The TC, implemented by UNDP, will involve the installation of cold stores, the creation of new jobs, and the training of cold-storage service providers, cooperatives, and small-holder farmers regarding cold storage harvest-to-market systems.
Mitigation potential and Long-Term Impact: The Project will directly mitigate the emission of 63,321 t CO2e over the course of the project and 886,453 t CO2e ten years after the project end. Over the lifetime of the technology, the project is expected to lead to the direct mitigation of 1,237,038 t CO2e.
