The United Kingdom has pledged a loan of KES 9.6 billion from the African Development Bank (AFDB) to support Kenya’s climate financing and enhancement of the power transmission network.
This commitment follows Kenya’s selection as the recipient of the Transmission Network Improvement Project under the Room To Run Sovereign Transaction (R2RS).
Approximately KES 9.4 billion ($59 million) of the total project cost of KES 18.5 billion ($116 million), allocated for the climate mitigation component, is now made possible through the UK’s guarantee, as highlighted in a statement by AfDB.
Neil Wigan, the British High Commissioner to Kenya, emphasized that the funds will be utilized for the enhancement of the power transmission network.
“Powering economies requires power for people. We’re working together with the AfDB and Kenya to deliver reliable power for sustainable economic growth, all achieved with green energy to safeguard the prospects of future generations. The UK and Kenya are making significant strides together,” he stated
This project that was sanctioned in 2023, aligns with the UK’s ongoing initiatives to address capacity constraints, improve the reliability and quality of electricity supply, and tackle technical and non-technical high-power system losses in Kenya’s transmission network.
The announcement comes in the wake of recent power blackouts in the nation, impacting critical installations such as the Jomo Kenyatta International Airport (JKIA).
African Development Bank Vice-President for Power, Energy, Climate, and Green Growth, Kevin Kariuki, expressed pride in partnering with the UK in this initiative.
“This transaction is one of several projects constituting its lending programme through which the African Development Bank fulfills the call by stakeholders at COP27 for MDBs to innovate and scale up climate finance. The African Development Bank is proud to be at the forefront of such developments,” he stated
Nnenna Nwabufo, ADB’s DG for East Africa, noted that Kenya is close to achieving universal electricity access with a high component of renewable energy.
According to him this move represents a major milestone in both sustainable development and the fight against climate change. The project is among five benefiting from the unlocked lending capacity provided by R2RS since the agreement was signed in 2022.
