This archive report was first published on 25 September 2019.
Kenya is taking a significant step towards reducing its reliance on fossil fuels and promoting renewable energy, with the European Investment Bank and FMO agreeing to finance two new solar photovoltaic plants in the country.
Each of the two projects, Radiant and Eldosol, will receive USD 53 million in funding from the EIB and FMO, with the remaining USD 41 million provided by the project promoters, Frontier Energy, David Langat, Chairman of the DL Group of Companies, and Ayaz Merali, Managing Director of Paramount Bank.
The total project cost is USD 147 million, and the new solar plants will be built in Western Kenya, near the town of Eldoret, 300km north-west of Nairobi.
As European Union Ambassador Simon Mordue noted, 'Kenya with EU support, is leading the way with visionary climate action.' The two new solar schemes will provide clean energy for Kenya and demonstrate the direct benefits of the close partnership between Kenya and the European Union.
Successful completion of the project financing for the two solar projects demonstrates the strong investment potential for future development of renewable energy by the private sector in East Africa.
The Kenyan government's national electrification strategy aims to expand access to electricity to all citizens by 2022, and the new Radiant and Eldosol plants will contribute to this goal.
