The World Bank to loan Sh18bn to KenGen for renewable projects
The Kenya Electricity Generating Company (KenGen), the nation’s leading power producer, is set to receive a Sh18bn (US$179mn) from the Washington-based World Bank.
The bank will offer Sh18bn to the power firm in risk guarantee, which will enable KenGen to invest in renewable energy projects with potential long-term capital attracted by the loan.
The Kenyan company also hopes the it will raise Sh30bn ($298mn) through long-term commercial financing, which it will use to refinance commercial loans.
The loan will “significantly improved electrification bringing much needed energy to millions of households and businesses,” remarked Rebecca Miano, Managing Director of KenGen.
“Our focus is on renewable energy especially wind and geothermal sources and the World Bank Guarantee Project will enable us scale up our investment in energy development and help Kenya achieve middle-income economy status by 2030.”
KenGen has plans to develop 1,745MW of geothermal power electricity by 2025. The company has installed 2,370MW of capacity so far, which can 1,770 in peak demand.