Kenya signed a $408-million loan agreement with Japan that will be used to finance its renewable energy sector. The loan is to fund the construction of a 140-MW geothermal power plant, the Olkaria V.
The Olkaria V is being constructed by Kenya Electricity Generating Company (KenGen), which has said it expects to begin construction in July, with the plant arriving on the grid by the end of 2018.
The plant is part of KenGen’s plans to add 720 MW of power, the majority of which will come from geothermal sources, over the next four years.
“The credit we have received today will fund the construction of a power generation plant to tap on the vast geothermal steam at Olkaria Geothermal field for generation of an additional 140 MW electricity to be put to the national grid,” National Treasury Cabinet Secretary Henry Rotich said after signing the agreement.