Stimulating Pay-As-You-Go Energy Access in Kenya and Tanzania: The Role of Development Finance

The solution to the challenge of financing the scale-up of Pay-As-You-Go (PAYG) energy access lies not so much in the development of new initiatives but in the use and redirection of existing approaches for PAYG, particularly the use of credit guarantees, lines of credit, technical assistance, and investment in a “fund of funds.” We offer recommendations to key stakeholders for developing a coordinated approach, including international DFIs and donor agencies, national government agencies involved in rural electrification, and private sector investors who are increasing their investments in the energy access area.