President William Ruto met UK Prime Minister Rishi Sunak at the sidelines of the COP27 conference on climate change currently taking place in Egypt. Sunak took the opportunity to announce that the UK would fast-track financing packages for green energy projects in the country, to the tune of Ksh500 billion.
Here, Business Today looks at five key projects covered in the partnership:
Hydropower Plant at Tana River
The UK package will support the development of a dam on Tana River to facilitate the generation of 1 gigawatt of power. The dam will also provide water to irrigate 400,000 hectares of farmland. This project will take up the lion’s share of the funding, with Ksh425 billion.
Nairobi Railway City
Ksh5 billion will be channeled to the Nairobi Railway City. The project in total is expected to cost around Ksh28 billion. The masterplan for the Nairobi Railway City was developed by the UK firm Atkins Global. Unveiled by former President Uhuru Kenyatta, the development will sit on 425 acres between Haile Sellasie Avenue, Uhuru Highway, Landhies Road and Bunyala Road. Among other things, it is expected to decongest the CBD.
The draft plans describe it as a “multi-modal” hub that will guarantee “seamless connection” among commuter rail, three Bus Rapid Transits, airport limousine, city bus and non-motorised transport such as bicycles.
It will also include mixed-use or commercial buildings, international offices, small and medium enterprise cluster and high tech industry buildings, open space and plazas and pedestrian walkways.
Globeleq-backed plant in Malindi
Ksh7.5 billion from the package will be invested in a Globeleq-backed solar plant in Malindi. An additional 2.5 billion shillings will go to developing a 35-megawatt geothermal power plant.
Made up of 157,000 photovoltaic panels, the solar plant in Malindi currently delivers enough clean and renewable power to supply approximately 250,000 residential customers and will avoid 44,500 tons of CO2-equivalent emissions annually, according to Globeleq and its project partner Africa Energy Development Corporation (AEDC).
Kisumu Agriculture Hub
Ksh32 billion will be invested in the development of a climate-resilient agriculture hub for the Lake Victoria region in Kisumu county.
Climate Financing partnership with CPF
In partnership with pension fund manager CPF Financial Services, the UK will commit Ksh2 billion to launch a new guarantee company, with the aim of mobilizing Ksh12 billion shillings of new climate finance for Kenyan infrastructure over the next three years.