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Kenya energy sector gets $330 million boost from World Bank
- 14 years ago (2010-06-01)
- David Flin
Kenya has received a $330 million loan from the World Bank to boost power generation. The fund is aimed at deepening investment in green energy and expanding access to electricity across the country, as part of the Kenya Electricity Expansion Project.
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Currently, Kenya generates only 165 MW from geothermal sources, and the bulk of its capacity comes from weather-prone hydropower sources. The World Bank has agreed to support efforts to promote access to energy while protecting the environment. Johannes Zutt, the World Bank Director for Kenya, said: “Kenya has demonstrated strong commitment to clean and green energy by exploiting its geothermal potential.”
The loan, which will be repaid in 40 years, has a 10 year grace period. The whole project will cost $1.4 billion, and is partly funded by the European Investment Bank (EIB), the German development bank KfW, the Japan International Cooperation Agency (JICA), and Agence Française de Dévelopement (AFD).
The World Bank is also providing finance of $160 million to the Energy Sector Recovery Project, intended to modernise the power transmission network.
The World Bank’s report “Africa Infrastructure Country Diagnostic, November 2009” stated that lack of reliable energy lowers annual revenues of Kenyan firms by about 7 per cent and reduces Kenya’s economic growth by about 1.5 per cent.