The United Kingdom and Kenya have agreed to fast-track six green investment projects worth KES500bn (US$4.1bn) to accelerate the flow of climate finance to Kenya. This includes a KES425bn (US$3.5bn) public private partnership to deliver the 1,000 MW Grand High Falls dam on the Tana River. Led by the UK engineering firm GBM, the project is envisaged to include a power purchase agreement for energy. In addition, KES12.5bn (US$103m) would be invested in a 35 MW geothermal project led by the Kenyan state-owned company Geothermal Development Company (GDC) and the UK firm Globeleq. Finally, KES7.5bn (US$60m) are set aside to double the capacity of a 40 MW solar plant constructed by Globeleq with finance from British International Investment, which was connected to the grid in December 2021.
Kenya also signed an agreement with Fortescue Future Industries (FFI), an affiliate of the Australian iron ore group Fortescue Metals Group, to develop by 2025 a 300 MW green ammonia and green fertiliser plant. The parties intend that this will be followed by the start of feasibility studies for two further projects which could increase renewable electricity generation for green industries by up to 25 GW, which could ultimately produce up to 1.7 Mt/year of green hydrogen for export.
Renewables accounts for nearly 95% of Kenya’s power mix (2020), with 44% of geothermal and 39% of hydro.