With a rapidly growing demand for electricity coupled with high dependence on hydroelectric power that has become unreliable, Kenya seeks to promote equitable access to quality energy services at the least cost while protecting the environment.
Source: World Bank
Kenya possesses bountiful wind, solar, small hydro, biomass, and geothermal potential. The government has introduced several policies to expedite development of these resources, and CIF funding is helping to remove some of the technical capacity, economic, financial and social constraints. Concessional funding from the SREP and CTF are particularly focused on de-risking geothermal power.
For example, SREP funding to the Menegai project is covering the riskiest and most critical stage of development: exploration drilling to prove the availability of steam resources. By absorbing risk that other financiers are unable or unwilling to bear, the SREP is helping the project advance, mobilizing MDB co-financing, and attracting other investors.
Kenya has nearly 7,000 MW geothermal potential, yet only about 200 MW is currently exploited
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|DPSP II: Concessional Finance Program for Geothermal Generation||FUNDClean Technology Fund||COFINANCING (USD MILLION) 29.65||FUNDING (USD MILLION) 77.80||MDBAFDB|
|Electricity Modernization Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 7.50||FUNDING (USD MILLION) 13.20||MDBIBRD|
|Menengai Geothermal Development Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 25.00||FUNDING (USD MILLION) 443.28||MDBAFDB|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.