Kenya’s state-owned power producer KenGen has launched an initiative to raise Sh 590 billion (approx. USD 4.5 billion) in funding to support a 10-year strategy that aims to increase installed power capacity by 1500 MW, with 800 MW coming from geothermal resources.
KenGen Managing Director Peter Njenga further added that the company has already secured financial backing from various lenders for a 300 MW geothermal project at Menengai. The company continues with efforts to engage with financial institutions to further support the initiative, including the German government.
“This initiative is a testament to the Government’s commitment to achieving a 100 per cent transition to tapping electricity from green sources by the year 2030 and turning away from fossil sources,” said Njenga.
Regulatory filings have already indicated KenGen’s plans of building the Olkaria VII geothermal power plant with an installed capacity of 80.3 MW. This is on top of efforts to rehabilitate and uprate the Olkaria I geothermal power plant, and optimize power plant operations by utilizing waste heat. The company also seeks to diversify revenue streams from geothermal resources with a geothermal-powered Green Energy Park, geothermal drilling contracts in neighboring African countries, and an ongoing geothermal exploration project in Eswatini.
Sustained support from Germany
The announcement was made during a visit to Kenya by German Vice-Chancellor and Minister of Economic Affairs Robert Habeck. The Vice-Chancellor led a German delegation of more than 800 members of the German Investment Forum to explore areas of investment and cooperation between Germany and Kenya. Part of the visit was a tour of the Olkaria geothermal wells and power plant facilities.
Habeck stated that Germany will continue to provide both financial and technical expertise to support the growth of the geothermal industry in Kenya, thus helping the country to transition to 100% renewable energy by 2030. Just last year, German Chancellor Olaf Scholz visited the Olkaria geothermal fields and expressed support for KenGen’s efforts to expand the installed capacity in Olkaria.
Through the development bank KfW, Germany has already financed energy projects in Kenya with more than EUR 248 million.
