Blended finance models are proving to be a viable pathway to scale electricity access in health facilities. Successful approaches have combined grants, concessional loans, and results-based financing (RBF) to reduce the risk and thereby attract private investment. Operational innovations—lease-to-own systems, local energy management teams, and digital performance monitoring—further support the electrification of health facilities in a sustainable and accountable manner. Donor-backed mechanisms like output-based aid and first-loss guarantees are also known to play a critical role in financing electrification where revenues are limited or uncertain.

However, significant barriers remain: high upfront capital costs, short funding cycles, limited LFI engagement, and financing models misaligned with the realities of small health facilities. Moreover, many PHCs lack the credit history, autonomy, or technical capacity to engage with the available products, and access electricity.

Unlocking scale will require a more targeted approach—specific financial products for different stakeholders, deeper LFI involvement supported by de-risking instruments, and stronger alignment between health, energy, and climate policy. With the right structures in place, decentralized renewables offer a high-impact opportunity to strengthen healthcare systems, improve resilience, and advance equitable energy access across Kenya and the region.