The approval allows the energy producer to attract long-term capital for its renewable energy development projects.
The World Bank will provide up to Sh18 billion ($180 million) to Kenya Electricity Generating Company (KenGen) in the form of risk guarantee allowing it to attract long term capital for its renewable energy development projects.
KenGen #ticker:KEGN said on Monday the World Bank’s approval will also enable it raise up to Sh30 billion ($300 million) in long term commercial financing to be used to refinance its existing commercial loans.
KenGen managing director Rebecca Miano said this will allow the State-run firm to build on Kenya’s gains that have diversified the energy mix and “significantly improved electrification bringing much needed energy to millions of households and businesses.”
“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,” said Mrs Miano in a statement.
KenGen plans to add 1,745 megawatts (MW) of electricity from geothermal sources by 2025, part of a government push to end power generation from fossil fuels.
Kenya has an installed generating capacity of 2,370 MW and peak demand of about 1,770 MW.
Of this, KenGen, which is 70 per cent owned by the government, has an installed capacity of 1,631 MW, with 533 MW from geothermal.