(Ecofin Agency) - World Bank has just approved a $180 million financing to reinvigorate Kenya’s main power producer- Kenya Electricity Generation (KenGen) - which accounts for more than 70% of the country’s production.

According to Reuters which mentioned World Bank, this loan guarantee will enable Kenya to mobilize nearly $300 million in the long term to pay the company’s commercial debts, allowing it to foster the development of renewable energy within the country.  

For the record, the country’s current capacity is 2, 370 MW for a 1, 770 MW peak demand. According to authorities, this demand increases by 8% every year and the government plans additional facilities to meet the growing demand.

Furthermore, this government strategy also aims at reducing production cost and subsequently the energy sale cost. Indeed, following complaints from customers, the energy minister has recently asked to cut the electricity cost; a process that would be easier with cheaper energy.

Gwladys Johnson Akinocho