Deal room diaries: Innovators’ lesson at climate summit

On the other side of the table, investors scrolled through financial sheets and exchanged glances that could mean anything from interest to dismissal. This was the high-stakes arena where Kenya's green future was being negotiated, pitch by pitch.

In one corner, Esther Njeri, CEO of Utheri Energy Solutions, presented her company’s portfolio of clean energy alternatives, such as fire briquettes and agricultural waste, to replace fossil fuels in industries. The investors nodded, and the questions came fast.

“What’s your payback period?” one asked. “What’s your customer acquisition cost?” another posed.

Later, outside the room, Esther was optimistic. “I think they loved the idea,” she said, smiling. “I hope I will make a deal with one of the investors today since two already approached our booth.” She highlighted a key lesson: “We have learnt to quantify our impact and present it in terms that investors understand. In these rooms, you quickly realise that passion is not enough; you have to learn their language.”

Next up was Stephen Loldepe from the Loosuk Hay Self Help Group. He explained how the group, formed after the devastating 2017 drought, is working to ensure healthy pasture for livestock and curb climate-driven animal movement. The group is now seeking Sh20 million to buy more equipment and start processing livestock pellets.

Gooseberry seeds

The focus then shifted to food value addition with Viola Maina of Gooseberry Delight Ltd. She captivated investors with a model in which the company provides farmers with gooseberry seeds and sources the harvest to produce pastes, jams, and sauces for hotels and supermarkets.

With a food scientist on the team ensuring quality, Viola outlined a clear need: a USD124,000 (about Sh16 million) investment to expand and meet overwhelming demand. “We can only supply 18 Quickmart outlets, but the demand is much higher,” she stated.

Gabriel Kimeu from Zayin Aqua Farm brought a technological edge to the room. He highlighted Kenya's massive 370,000-tonne annual fish deficit and explained how his farm uses modern recirculating aquaculture technology to produce fish year-round with 80 per cent less water.

“What started as a hobby in 2021 has now grown into a strong team working on food security and waste management,” Gabriel said. His ask was a precise Sh8.5 million investment, split between equity, debt, and grant components, to scale an operation that already employs 85 per cent women.

The pitches continued with Maria Schlesinger, co-founder of Takazuri Limited, who presented glossy, interlocking roofing tiles made entirely from recycled plastic waste. An investor questioned their durability: “Plastic roofing? Will it hold in the coastal heat?”

Maria responded confidently, “Yes, it is UV-resistant, fire-retardant, and designed for rainwater harvesting. Even baboons in Diani can’t damage it.” She also shared a key regulatory hurdle. “When we went to the Kenya Bureau of Statistics (KEBS), there was no category for what we had made. They did not know where to place us... That uncertainty makes investors nervous.”

Her persistence paid off, earning her follow-up meetings with two investors. Finally, the room heated up with a pitch from Ginene Ltd in Narok, asking for USD320,000 (Sh41.2 million) to develop the Kenyan chilli industry. The organisation laid out a three-phase plan to increase production, achieve export licensing, and build a high-capacity processing line, aiming to connect rural farmers to formal markets.

As the entrepreneurs pitched, the investors listened, their minds weighing impact against viability.

Caroline Chepekwony of Okavango Company was drawn to nature-based solutions. “You see incredible passion,” she observed, “but a lot of entrepreneurs do not yet have the financial storytelling investors look for.” She noted that the deal flow is improving, but a gap remains. “If I cannot see your margins or cash flow, I cannot make a decision, no matter how inspiring your idea is.”

Unrealistic financials

An anonymous investor echoed this, pointing out that unrealistic financials are a major red flag. “A significant gap between what a company is making and what it is asking for puts off investors. You have to set realistic goals. You can be making Sh1 million today and asking for a Sh30 million investment.” His firm, which has already invested in several businesses from the summit, focuses on providing technical assistance and mentorship alongside capital. “We have to ensure that what we invest we get back,” he explained.

Bernard Muhande from Heifer International offered a different perspective, emphasising the human element. “Some pitchers forget to mention their on-the-ground partners, usually the farmers,” he said. “Skipping that during a pitch shows a disconnect between the project and the people it works with, which is not good for investment. Don't show a donor-reliant front when presenting your profile because that is not a good look.”

As Day Two of the summit ended, the atmosphere shifted from formal pitches to hopeful networking. Some entrepreneurs were already exchanging contacts with investors, a promise of follow-up meetings. Others walked out of the rooms armed with lessons — not just hammered with investors' tough questions, but nhaving also gathered insights gained from watching their peers.

The deal rooms had served their purpose: they were not ATMs dispensing cash, but crucial translation hubs where the language of innovation began to learn the grammar of commerce. For Kenya's climate startups, the conversation has just begun.

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