This manual is based on more than twoyear's worth of field experience in Kenya during whichabout 120 solar home systems (SHS) were installed throughdifferent financing mechanisms. It outlines two differentfinance approaches that address lighting and power needs of1) rural households with regular cash income and 2) smallbusinesses with the potential to increase their productivitywith solar-powered electricity. This report found that itwas feasible to establish financing mechanisms for solarelectric systems for use in households and smallbusinesses-once the right partners were identified and clearprocedures were identified indicating each partner'sresponsibilities. The desire to have electricity is sodeeply-rooted that households that have a chance to obtainloan to acquire a solar electric system will do so. In orderto get these financing mechanisms off the ground, a certainamount of technical assistance for training and qualitycontrol is necessary, as is a limited financial assistanceto slightly reduce the costs of the loans offered.