The United Kingdom will guarantee up to $59 million (Sh9.4 billion) of the loan Kenya is set to receive from the African Development Bank (AfDB) to improve transmission lines to boost the country’s energy security.
The guarantee means that the UK will now shoulder part of the risks associated with the $119 million (Sh19 billion) project, allowing the continental lender to extend extra funding for the development, covering the climate mitigation-related costs.
The transmission network improvement project, which will be executed by the Kenya Electricity Transmission Company (Ketraco), was approved by AfDB last year and will benefit from a joint loan from the Abidjan-based lender and the Korean Exim Bank (EDCF).
AfDB and EDCF will each give Sh9.1 billion ($57 million) for the project, and the Kenyan government will cover the balance.
“The AfDB and the UK have announced the selection of the Transmission Network Improvement Project in Kenya as a beneficiary project under the Room to Run Sovereign transaction (R2RS),” AfDB said in a statement.
The project is meant to improve Kenya’s power transfer capacity, quality of electricity supply, reliability of high-voltage transmission networks and to boost social and economic development of the areas targeted.
The money will be used to construct high-voltage transmission lines between Kabarnet and Rumuruti; Narok and Bomet; and Weru, Malindi and Kilifi; and associated substations.
According to the bank, “addressing the transmission system gaps in the country is a prerequisite for achieving universal electricity access and improving the quality of life of communities through enhanced socioeconomic development.”
“Powering economies requires power for people. We’re working together with the AfDB and Kenya to deliver what Kenyans want and need: reliable power for reliable economic growth – all with green energy that protects the prospects of future generations,” said Neil Wigan, UK’s high commissioner to Kenya.
AfDB’s director-general for East Africa Nnenna Nwabufo said the project is a “major milestone in both sustainable development and the fight against climate change.”
“Kenya is close to achieving universal electricity access with a high component of renewable energy,” she said.
