The African Development Bank (AfDB)-managed Sustainable Energy Fund for Africa (Sefa) has approved a $992,000 grant for a 7.8MW hydropower project on the Mutonga River in Meru County. The project is based on standard run-of-river technology, with a shareholding structure where the Mutunguru community in central Kenya will receive a fixed small share of profits. The Sefa grant to Mutunguru Hydroelectric Company Limited will help finance legal support for setting up community arrangements, financial advisory, support to lenders’ due diligence, support to environmental and social impact assessments, and institutional and management capacity building.