(Ecofin Agency) - Kenya has cut by more than 50% the purchase price for energy generated by one of its solar plants thanks to a $135.7 million concessional loan granted by Exim Bank of China for the facility’s construction.

The power generated by the Garissa plant, which will be constructed by Kenya's Rural Electrification Authority (REA), will be sold at 5.49 cents per kilowatt instead of the 12 cents decided in 2016.

According to a statement of the REA, the plant is nearly completed and by September, it will generate its first megawatts. Also, Garissa plant is expected to reach its break-even point 17 years after it is commissioned.

Peter Mbugua, REA’s executive director, also indicates that the government is exploring the possibilities to transfer the operation of the plant to Kenya Electricity Generating company which is more competent to handle such operation.

Gwladys Johnson Akinocho