Kenyans living abroad are channelling their remittances into climate projects through a new savings model built on cooperative credit unions, with three SACCOs already live with products designed to make it happen.
Stima, K-Unity, and Kenya USA Diaspora SACCOs have each launched climate-focused deposit accounts that offer diaspora members competitive interest rates while directing their funds toward solar energy systems, irrigation infrastructure, climate-smart agriculture, and green housing in communities, creating a structured investment pathway where none previously existed.
The initiative was developed by the World Council of Credit Unions (WOCCU) and the Irish League of Credit Unions International Development Foundation (ILCU Foundation), with technical 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.
Kenya’s diaspora sends nearly $5 billion (about Ksh 647 billion) home each year. While those flows have long sustained families and local economies, they have historically lacked any formal channel toward climate mitigation or community investment. “With billions in annual remittances, diaspora savings represent a significant opportunity to finance the types of investments communities need most,” said Eileen Miamidian, WOCCU’s Technical Director of Inclusive Financial Services.
Kenya’s SACCO sector provides a ready infrastructure for the model. With over seven million members and deep roots in rural and peri-urban communities, the cooperatives already serve populations on the frontlines of climate stress, shocks that cost the Kenyan economy an estimated three to five percent annually.
WOCCU’s technical work included market research across diaspora corridors, product design and feasibility analysis, and capacity building in governance and climate impact tracking. The program also brokered partnerships with remittance platforms and digital onboarding providers to ease access for members abroad.
Alan Moore, CEO of the ILCU Foundation, said the program embodies the cooperative movement’s founding principle. “This initiative reflects the very best of what the global credit union movement stands for — people helping people,” he said, describing the accounts as turning everyday savings into a vehicle for resilience and shared prosperity.
The pilot runs through July 2026, with participating SACCOs targeting more than 200 new accounts. Early uptake points to strong demand among diaspora members for financial products tied to measurable impact at home. Lessons from the pilot are expected to inform efforts to replicate the model across additional remittance corridors within the global credit union system.
