Ikea Foundation allocatesUS$5.1M to support SME waste management projects

KENYA – The IKEA Foundation, in collaboration with the Kenya Climate Innovation Center (KCIC), has allocated US$5.1 million to support 110 small and medium-sized enterprises (SMEs) in Kenya, aiming to establish innovative waste management models.

This joint initiative, named ‘Sustainable Waste Innovation for a Future in Transition (SWIFT),’ spans a three-year period and has a primary goal of transforming Kenya’s waste management sector by fostering innovative business models grounded in circular economy principles.

In the inaugural year of implementation, the SWIFT program intends to assist 55 enterprises in various areas, encompassing business advisory support, compliance for market access, technical assistance, access to financial solutions, sustainability integration, policy support, and technology solutions. A distinctive emphasis will be placed on supporting enterprises led by youth and women.

In alignment with both KCIC’s mission and the IKEA Foundation’s dedication to climate action and enhancing everyday life, the SWIFT Program positions itself as a catalyst for green entrepreneurship within the waste management sector.

This, in turn, is anticipated to stimulate job creation, enhance living conditions for communities, and address environmental challenges.

Joseph Murabula, Chief Executive Officer of the Kenya Climate Innovation Center, expressed confidence in the SWIFT program, highlighting its alignment with KCIC’s extensive experience supporting enterprises in the climate space over the past eleven years.

He emphasized the vital role of technical assistance and funding in nurturing the growth and sustainability of SMEs in the climate sector.

Throughout its implementation, the SWIFT program aims to support a total of 110 SMEs in Kenya, fostering the creation of over 2,000 direct jobs, 4,000 indirect jobs, improving the livelihoods of more than 5,000 households, and generating up to US$10 million in revenue for the supported enterprises.

A 2022 research study by ANDE revealed a significant market opportunity in Kenya for green entrepreneurship, estimated at US$123 billion for small and growing businesses.

The waste management and circular economy sector alone represents a substantial market opportunity, valued at a staggering US$54 billion. This is largely attributed to the country’s low adoption of circular economy principles.

To reinforce waste management policies and frameworks, KCIC will strategically collaborate with the national government and five counties, namely Nairobi, Mombasa, Nakuru, Kisumu, and Uasin Gishu.

This collaborative effort seeks to develop policies and regulations that incentivize private sector engagement in waste management and circular economy practices.

The call for applications is currently open to all enterprises meeting the eligibility criteria outlined by KCIC. Interested parties can submit their applications online through the KCIC website, with the deadline set for February 2nd, 2024.

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