“In this regard Cabinet forwards for parliamentary approval the establishment of an escrow guarantee fund for semi-concessional loans for external borrowing by KenGen and Kenya Electricity Transmission Company from EIB and KFW to finance the additional power generation of 421 megawatts,” a statement issued by the Presidential Press Service said.
The Cabinet also approved semi-concessional borrowing for Kenya Power and Lighting Company (KPLC).
The projects set to be developed by KPLC include the construction of a Double Circuit 220 KV line from Lessos to Kisumu and the borrowing of a semi-concessional loan from NORDEA Bank of Finland for construction of the Juja Road sub-station.
The Cabinet said the plans were expected to help meet the growing demand for electricity in the country.
Boost renewable energy
Kenya is also fast-tracking its plan to boost renewable energy as hydro power increasingly becomes unreliable due to erratic rains. Several such power projects are scheduled to kick off next month.
The envisaged 20-year plan to boost the country’s power by 2,000 megawatts has been turned to a three-year “crash programme”.
In adopting renewable energy, Kenya hopes to reap added gains of turning the country into a green economy.
This way, Kenya will be joining a global initiative to combat climate change through environment-friendly practices that promise millions of new jobs.