Programme connects global remittances to local climate solutions through Savings and Credit Cooperative Organsiations (SACCOs).
A visit to Ndumberi Dairy Farmers Co-op Society Limited in April 2026 highlights how SACCO financing is helping local cooperatives invest in solar energy and build more climate-resilient operations.
Nearly $5 billion in annual remittances from the Kenyan diaspora is being mobilised to support climate solutions through a new program that creates a direct pathway for savings to finance renewable energy, water access, climate-smart agriculture and green housing projects through savings and credit cooperatives (SACCOs).
The initiative was developed by the ILCU International Development Foundation (Foundation) and the World Council of Credit Unions (WOCCU), with support from the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA), and funding from the Climate Finance Fund, hosted by the European Climate Foundation. WOCCU led the technical design and implementation, enabling participating SACCOs to develop and launch climate-focused deposit products tailored to diaspora members.
More than 3 million Kenyans living abroad send billions of dollars home each year. While these funds play a critical role in supporting families and local economies, they have historically lacked dedicated pathways for investment in climate mitigation and resilience. This pilot addresses that gap by enabling diaspora members to channel their savings directly into climate-related projects in their home communities.
Three SACCOs – Stima, K-Unity and Kenya USA Diaspora SACCO -have already launched climate deposit products, offering competitive interest rates alongside transparent reporting on how funds are used and the impact they generate. Early investments are supporting solar energy systems, irrigation and water infrastructure, climate-smart agriculture and green housing initiatives.
A K-Unity SACCO member is putting climate finance into action through a farm powered largely by renewable energy, with solar energy supporting lighting and milking operations and biogas supplying heat and fuel across the property.
“This initiative reflects the very best of what the global credit union movement stands for—people helping people. With the support of Irish credit unions, the ILCU Foundation is proud to help connect diaspora communities with meaningful climate action at home, turning everyday savings into a force for resilience, sustainability and shared prosperity.” Alan Moore, ILCU Foundation.
“This model demonstrates how credit unions connect global capital to local climate solutions in a way that is both accessible and impactful. With billions in annual remittances, diaspora savings represent a significant opportunity to finance the types of investments communities need most.” Eileen Miamidian, Technical Director of Inclusive Financial Services, WOCCU.
ACTE project participants take part in technical support training focused on assessing environmental, social and governance (ESG) risks within SACCO operations, including integrating climate risk considerations into lending, governance and institutional policy.
Kenya is well-positioned for this approach. The country’s SACCOs serve more than 7 million members and have deep roots in communities facing climate-related shocks, which cost an estimated 3 to 5 percent of the economy each year. Many SACCOs already offer climate-related financing products, creating a strong foundation for scaling climate-focused savings.
The pilot is designed to test and refine a scalable model. By July 2026, participating SACCOs are expected to open more than 200 new accounts, with early demand indicating strong interest among diaspora members for climate-linked financial products.
WOCCU’s technical implementation included market research across key diaspora corridors, product design and feasibility analysis, and capacity building to strengthen governance, climate impact tracking and operational systems. The initiative also facilitated partnerships with remittance platforms and digital onboarding providers to improve access for diaspora members.
The initiative was implemented between July 2025 and April 2026, with the Foundation serving as lead partner and WOCCU leading technical design and implementation.
Insights from the pilot will inform future efforts to expand climate-focused savings and investment models across additional remittance corridors, helping scale access to sustainable finance within the global credit union system.
