KIMS Microfinance

The challenge

Electricity access in Somalia remains extremely limited, despite growing demand for solar, especially in rural and pastoralist areas where infrastructure is weak and incomes are low. Without affordable financing, most households cannot access solar energy solutions and instead rely on expensive, polluting, or unsafe alternatives like kerosene and diesel. For families living off-grid, the lack of power limits education, health care, livelihoods, and quality of life.

The innovation

KIMS Microfinance, the country’s leading microfinance institution, entered the off-grid energy sector in 2023 with a model designed specifically for Somalia’s most underserved households. Its solar loan products offer flexible terms for essential technologies—such as lighting, radios, and mobile charging—designed for mobility and affordability, bringing clean energy within reach. The loan terms are structured to reflect seasonal income, mobility, and local purchasing behaviors, making it one of the only truly context-aware financing solutions in the region.

The impact

In its first year, KIMS enabled over 3,000 people across six provinces to access electricity — many for the very first time. With new support from Acumen’s Hardest-to-Reach initiative, KIMS is expanding its footprint with a goal to reach 17,000 household connections by 2030. The company also plans to finance larger solar systems for businesses and high-energy-use homes, helping build local economies while improving energy resilience.