Japanese Prime Minister Shinzo Abe. He is expected in Kenya for Ticad meeting. PHOTO | FILE
The government of Japan government is set to announce financial assistance for Kenya geothermal power projects when Prime Minister Shinzo Abe attends the sixth Tokyo International Conference on African Development to be held in Nairobi beginning this coming weekend.
Japanese media reported the planned aid deal will see Tokyo provide both financing and know-how in Kenya from the initial stage, hoping to improve the odds of success in exploration.
The grants will cover a portion of pre-construction stage costs, which can run up to Sh10 billion ($100 million).
Kenya government is racing to meet an ambitious target it set for itself in 2013 to grow the installed power capacity from 1,708 megawatts to 6,708 megawatts by 2017 to spur industrial growth and light more homes.
In addition Tokyo is expected to offer low-interest loans from the Japan International Cooperation Agency (JICA) and other financing available for geothermal projects that have reached the construction stage.
Kenya has Africa’s biggest concentration of geothermal power capacity mainly located in the Olkaria area of Naivasha and Baringo.
It is expected that during Mr Abe’s visit Japanese companies will also be angling for the deals to help Kenya build its generation capacity.
Toyota Tsusho and Toshiba already won a 2011 contract for geothermal power facilities in Olkaria.
Others expected to bid for similar deals include Mitsubishi Corp, Mitsubishi Hitachi Power, Marubeni and Fuji Electric.
Toyota Tsusho and national utility Kenya Electricity Generating Company are currently planning feasibility studies for geothermal installations beyond Olkaria.
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