Kenya, one of Africa’s leading avocado-exporting countries, offers tremendous agricultural potential thanks to its fertile highlands, favorable climate conditions, and young population. However, despite growing international demand for Kenyan avocados, there is a widespread lack of infrastructure for storage, processing, and marketing. Especially in rural regions like Laikipia County, large harvest quantities are lost annually due to spoilage – with serious consequences for income, quality of life, and climate impact. 

Karanja Orchard Ltd. aims to address this issue with a sustainable infrastructure project: the construction of a modern processing and cooling facility for avocados in Rumuruti. The facility will be entirely powered by solar energy and is intended not only to process the company’s own harvest but also to purchase avocados from smallholder farmers in the region – including those not suitable for export. These will be processed into high-quality avocado oil, thereby creating local value and avoiding food losses. 

The goal of the project is to create income and jobs in rural areas, strengthen the export capacity  and contribute to climate protection through solar energy supply. The project thereby combines ecological sustainability, economic inclusion, and social impact in an exemplary way. 

The project by AAAS Kenya Project 1 Ltd. actively contributes to 5 of the United Nations Sustainable Development Goals (SDGs): 

SDG 2 (Zero Hunger): By establishing a local processing facility for organically grown avocados, the project increases value creation in the region. Farmers gain access to a fair and stable market – even for previously unused surplus harvests. As a result, regional food security improves sustainably and hunger is effectively reduced. 

SDG 7 (Affordable and Clean Energy): The entire processing facility is powered by a large, rooftop-mounted solar system. This eliminates the need for fossil fuels and ensures climate-friendly operations. 

SDG 8 (Decent Work and Economic Growth): The project creates new, long-term jobs in processing, logistics, and administration – particularly in a rural region with high unemployment. 

SDG 12 (Responsible Consumption and Production): In Kenya, around 20% of the avocado harvest is currently discarded due to strict export standards. These fruits will now be processed locally into high-quality oil – an ecological solution that reduces food waste and conserves resources. 

SDG 13 (Climate Action): The solar-powered facility operation avoids CO₂ emissions, and local processing reduces transportation requirements. The project therefore makes a measurable contribution to climate protection. 

The operation of the new avocado processing facility in Rumuruti is entirely based on solar energy – a clear signal for sustainable development in rural areas. The large-scale 200 kWp photovoltaic system supplies all areas of the facility with clean electricity: cold storage rooms, sorting systems, oil extraction machinery, and electric forklifts. 

 The facility generates approximately 320,000 kWh of solar power annually, saving around 256 tons of CO₂ per year compared to diesel-based electricity generation. 

The project also contributes to emissions reduction in the supply chain: currently around 20% of the avocado harvest is discarded because it was not suitable for export. In the future, these fruits will be processed locally – which saves transport distances, reduces food waste, and lowers methane emissions that would otherwise result from rotting. 

The project clearly demonstrates how solar energy supply, regional production, and efficient resource use can make a direct contribution to climate protection – in line with a circular, future-proof agricultural system. 

The investment risks associated with the subordinated loan are described in detail in the Basisinformationsblatt. In assessing and limiting the risks for investors, the issuer highlights the following specific features in the structure of the project: 

1.Use of a Special Purpose Vehicle as the Lender 

For the crowdfunding campaigns on bettervest, a special purpose vehicle named Afrika Emissions 9 UG, based in Germany, was established to act as the lender for this project. It forwards the raised capital as a senior loan to the project owner and borrower in Kenya, AAAS Kenya Project 1 Ltd. Shareholders and management of Afrika Emissions 9 UG are independent from AAAS Kenya Project 1 Ltd. 

2. Special Purpose Vehicle in Kenya as Project Owner and Borrower 

AAAS Kenya Project 1 Ltd. acts as the project owner and borrower within the financing structure. This special purpose vehicle was established for the local implementation of the project, which subleases the processing facility to Karanja Orchard Ltd. under a long-term lease agreement. The Dutch parent company, AAAS Energy B.V., is managing the technical planning, financing, and management of the project. 

3. Pledging of Land Titles: 

The borrower, AAAS Kenya Project 1 Ltd., ensures that 2 titles of land owned by Karanja Orchard Ltd. are pledged to the lender, Afrika Emissions 9 UG. Should AAAS Kenya Project 1 Ltd. fail to repay the loan, the lender is entitled to liquidate these properties. 

4. Assignment of Lease Revenues 

The ongoing revenues of the borrower, AAAS Kenya Project 1 Ltd., from the long-term lease agreement with Karanja Orchard Ltd. are assigned as collateral to the lender, Afrika Emissions 9 UG. If AAAS Kenya Project 1 Ltd. fails to meet its repayment obligations, the lender is entitled to use these revenues to repay the loan. 

Investment Requirement 

The total investment volume of the project amounts to EUR 801,250, which is to be financed through the planned crowdfunding subordinated loan. The remaining funds will be contributed as equity capital in the amount of EUR 190,000 by the sponsor AAAS Energy B.V. This capital will be used for the realization of a solar-powered avocado processing facility in Rumuruti, Kenya, including cold storage, processing lines, and a 200 kWp photovoltaic system. 

The loan term is 7 years and offers a fixed annual interest rate of 7.5% p.a. for crowd investors. The funding threshold for this project is EUR 50,000. If the funding goal is not reached, but at least the funding threshold is met, the project owner will still use the investors’ funds for the construction of the cooling and processing plant to a lesser extent. 

Interest 

The investor receives an annual interest payment of up to 7.5% p.a. on the subordinated loan amount, starting from the beginning of the regular interest period. Interest payments are due quarterly in arrears, with the first payment due three months after the start of the regular interest period and the final payment due at the end of the loan term. The amount of the quarterly interest payments is detailed in the subordinated loan terms as part of the interest and repayment schedule. 

Bonus Interest 

In addition, the issuer grants a bonus interest of up to 0.5% p.a. on the subordinated loan amount if, and to the extent that, at the site of the cooling facility in Rumuruti, Kenya, a local grid electricity price of less than 13 Kenyan Shillings (KES) per kWh is payable on more than 50% of the weekly working days on which the facility is in operation. This bonus interest is payable together with the regular interest on the subordinated loan. 

Repayment 

Repayment of the subordinated loan is subject to qualified subordination and the pre-insolvency enforcement block and takes place in the amount of the invested loan capital. Repayment is made in quarterly instalments, starting 15 months after the beginning of the regular interest period and ending at the maturity date. The amount of the quarterly repayments varies and is outlined in the subordinated loan terms as part of the interest and repayment schedule. 

Repayment of the loan is made from the monthly lease payments paid by Karanja Orchard Ltd. to the project company (AAAS Kenya Project 1 Ltd.). These payments are based on a long-term lease agreement and represent the primary revenue source of the SPV for servicing interest and repayment obligations. 

Karanja Orchard Ltd., in turn, generates these lease payments from its ongoing business operations, primarily through the processing and sale of avocado oil and fresh avocados. The expected revenues are supported by strong local and international market demand and a proven, stable customer base.