To back Kenya’s climate change leadership, the United Kingdom has committed to going forward with Ksh500 billion in new British investment initiatives.
This agreement was negotiated during the COP27 climate conference in Egypt on November 7, 2022, by British Prime Minister Rishi Sunak and Kenyan President William Ruto.
Six green investment projects encompassing
- renewable energy,
- sustainable agriculture
- and environmentally friendly transportation
were agreed upon and will be prioritized by the government.
Sunak lauded Kenya for its pioneering leadership on climate change and urged President Ruto to maintain his advocacy for clean energy development.
The UK and Kenya have entered into an ambitious five-year agreement that is bringing about mutual advantages for both countries, and these investments will become showpiece initiatives of that partnership.
Among the endeavors are:
A Solar Energy Expansion in Malindi
The expansion of Malindi’s solar energy sector would cost Ksh 7.50 million.
In December 2021, British firm Globeleq constructed a 40 MW solar project with funding from British International Investment, which has begun its operations.
An extra Ksh7.5 billion will be invested to expand Malindi Solar’s capacity by building in battery storage, bringing the total cost to over Ksh15 billion.
Geothermal Energy Production
Ksh2.5b investment. Globeleq will construct a 35 MW geothermal plant identified by GDC. The project’s Generation Purchase Agreement with KPLC guarantees one of the lowest pricing for baseload renewable power.
Grand High Falls Dam
Financial commitment of Ksh25 billion. Tana River Public Private Partnership will provide 1,000MW of hydroelectric power and water for farming on 400,000 acres.
A Power Purchase Agreement for renewable energy and a Water Purchase Agreement for agricultural irrigation are also planned components of the project, which will be headed by a UK engineering company, GBM.
Budget of Ksh31 billion. By partnering with Kisumu County, they will develop a climate-smart agricultural and agro-industrial processing system that will result in the creation of 2,000 new employment and the maintenance of an income for an additional 20,000 farmers in the counties around Lake Victoria.
Nairobi Railway Station
Expenditure of 5 billion Kenyan Shillings. An environmentally friendly revitalization of downtown Nairobi centered on a new central rail station linked to Bus Rapid Transit that uses cutting-edge green construction technologies and urban planning practices.
In order to de-risk investments and open up private financing from pension funds and insurance firms for projects in Kenya, the UK Government is teaming up with CPF Financial Services and other private investors, including Cardano Development, to form a new guarantee business.
“UK and Kenya went far together. By fast-tracking clean, green projects with honest, trustworthy investment, the UK helps Kenya preserve its continent-leading climate credentials, which benefits both nations.” The British High Commissioner in Kenya, Jane Marriott, has made some remarks on the partnership.