Kenya’s renewable energy ambitions are set to receive a boost thanks to investments from the EU. Under a deal signed between the government of Kenya, EU banks, and development organizations Kenya will receive a funding package worth about €180 million.
The new agreement will enable Kenya Power to connect many more ordinary households in 32 counties of Kenya to the national grid, using European bank soft loans and development funds to support the country's "Last Mile Connectivity" initiative. The total financial package was put together by the EU, the French Development Agency (AFD) and European Investment Bank (EIB).
EU Ambassador Stefano Dejak, EIB Vice-President Pim Van Ballekom and France's Ambassador Antoine Sivan were present at the Treasury where the deal was signed between Cabinet Secretary of National Treasury Henry Rotich, the AFD's Regional Director Bruno Deprince, and the EIB's Vice-President.
"The Last Mile Connectivity initiative is a vital part of Kenya's development," said Ambassador Dejak. "It helps ensure that the national power grid reaches as many households as possible, so that ordinary Kenyan people have direct access to cheaper and more reliable supplies of electricity. The necessary investments aren't always commercially attractive, which is why the European Union has decided to support them with a major grant."
Ambassador Sivan acknowledged the “ongoing revolution in the field of access to electricity in Kenya”. He noted that:“The efforts of the Kenyan Government have led to an unprecedented number of new citizens accessing electricity each year. Kenya is now an example for the countries of the region. We are proud to have been supporting the Kenyan authorities along this exciting journey, and we are looking forward to continuing doing so.”
“Kenya is increasingly becoming a hub for the region on many levels and we as a Bank must look at this from a very basic point of view, namely that there is a young and growing population with enormous potential, and that you need investments to support that momentum,” said EIB Vice-President Van Ballekom. He also mentioned that thanks to today’s signature nearly 300,000 Kenyan households will soon be connected to the electricity grid, a basic condition for further economic growth.