*A short-term debt that can be converted into equity in the company at a future date.
The investment will expand Sanivation’s operations to treat faecal sludge equivalent to that produced by 130,000 households and produce solid fuel briquettes that are more efficient than traditional firewood, lower customers’ energy costs by 10-30 per cent, reduce pressure on existing wastewater treatment facilities, and prevent pollution of Lake Naivasha.
We were already considering Sanivation’s waste-to-value proposition, but the deal gained momentum when our Business Development Lead sat on a panel with Sanivation’s CEO. During that discussion, he recognised the company’s need for early-stage capital to scale its pioneering solution, catalysing the transaction.
By blending a convertible loan with technical assistance, we mitigated the project financing risks while enhancing the viability and impact of the investment.
The business model itself is highly distinctive. Converting faecal sludge into renewable fuel briquettes for sale to local industry tackles two challenges at once: addressing the need for safe sanitation and for clean, affordable industrial heating. The public-private partnership (PPP) approach ensures strong buy-in from county governments and water utilities. This integrated, circular economy approach also strengthens financial sustainability when compared with traditional sanitation-only models.
Collaboration between the public and private sector can be complex. The work of our Legal team to ensure that all relevant documentation was properly structured and executed in a timely manner strengthened the legal foundation of the project, something which was critical to de-risking the investment.
Yes! The Naivasha project will be used to prove the commercial viability of Sanivation’s waste-to-value model at scale. The company has already signed Joint Development Agreements with a further nine county governments, demonstrating strong demand and institutional buy-in. Sanivation is working on other initiatives designed to build a structured pipeline for replication.
The waste-to-value approach, and PPP model, have potential to address sanitation and energy challenges across the wider region.
Looking back, early engagement with government counterparts was valuable, but certain critical regulatory and contractual issues required more explicit alignment to avoid delays
and make internal discussions more effective.
