Kenya received approval from the Climate Investment Funds’ Clean Technology Fund (CIF-CTF) for a $29.65 million concessional loan to co-finance up to two geothermal projects. The loan was achieved with the support of the AfDB.
The projects are aimed at increasing the East African country’s power capacity, particularly drawing on untapped geothermal resources in the Rift Valley.
The CTF funds will create a concessional lending program designed to ensure the projects’ financial viability and commercial bankability by shoring up conventional financing and breaking down barriers to private investment. The program will support up to two geothermal generation projects structured as Independent Power Producers (IPPs), and will be implemented with AfDB support.
“Kenya is already demonstrating its ability to reshape its energy future by developing its vast geothermal resources through Menengai,” said Joao Duarte Cunha, AfDB’s Coordinator for CTF. “But it still faces market barriers to full deployment of its renewables. This infusion of capital will thus serve to build investor confidence and improve bankability of these vital resources. Furthermore, the success of the IPPs developed in this program can serve as a beacon for other countries looking to achieve similar green energy goals.”