Kenya has secured a US$70.0 million (Ksh11 billion) financing from the Climate Investment Funds to help in integrating and maximizing usage of renewable energy electricity.
The Climate Investment Funds (CIF) is an international fund dedicated to financing climate-smart planning and climate action in low and middle-income economies.
In a statement, CIF confirmed that Kenya is set to receive an initial allocation of US$46.39 million (Ksh 7 billion).
The funds, according to the statement, will prioritize Kenya’s plan to reduce greenhouse gas emissions by 32.0% by the year 2030 and achieve net zero by 2050.
“The Trust Fund Committee of the Climate Investment Funds (CIF) endorsed a $70 million plan, with an initial allocation of $46.39 million, to advance the integration and utilisation of renewable energy in the Kenyan grid, enabling the country’s transition to 100 percent clean energy by 2030,” the CIF statement read in part.
With the new funds in the bag, Kenyans are set to enjoy enhanced access to clean, adequate, affordable, and reliable electricity in the country.
The investment is part of CIF’s Renewable Energy Integration (REI) investment which targets countries including Kenya.
In addition to the Ksh11 billion, the program is expected to mobilize additional investments of at least $243 million from the public and private sectors through implementing partners—the African Development Bank and the World Bank Group.
Kenya welcomes new funding
Welcoming the announcement, Energy Principal Secretary Alex Wachira thanked CIF on behalf of Kenya, noting that the financing will help Kenya achieve its goal of having a 100% clean energy grid.
Wachira also noted that the program will help to ensure gender balance among the professionals and resource persons who undergo training, creating a gender-responsive and diverse pool of skilled manpower in the renewable energy sector.
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“The Government of Kenya expresses its gratitude for being among the countries participating in the Renewable Energy Integration Program and acknowledges the valuable support extended by the Climate Investment Funds,” said Wachira.
On his part, Luis Tineo the Interim CEO of Climate investment Funds expressed the fund’s excitement to support Kenya’s ambition of hitting the 100% clean energy landmark.
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“We are very excited to support Kenya in their trailblazing effort to reach universal energy access while embracing low carbon technology, from renewable energy and geothermal development to e-mobility and clean cooking,” Linus Tineo commented.
Currently, the share of renewable energy in Kenya is almost 90 percent – including 45 percent geothermal and 26 percent hydropower.
However, the national grid has been plagued with challenges which the investment will look to address.
For instance, the grid struggles to meet peak demand during evening hours leading to frequent outages.
