This archive report was first published on 27 September 2019.
Kenya's proposed Sh200 billion coal-fired power plant in Lamu has suffered another setback, putting its future at risk. The latest development follows a revelation by African Development Bank (AfDB) President Akinwumi Adesina that the bank plans to switch its funding from coal power stations to renewable energy.
Speaking at the United Nations General Assembly on Climate Change on September 24, 2018, Adesina outlined efforts by the lender to build the 'largest solar zone in the world' in the arid Sahel belt. The bank unveiled a Sh50 billion green base-load scheme that will be rolled out beginning next year, set to yield Sh500 billion of investment to help African countries transition from coal and fossil fuel to renewable energy.
AfDB was one of the key financing partners of Amu Power, which was courting to fund construction of the 1,020 MW coal-fired plant at the coastal town. The latest move could now force the project to seek alternative financing.
Amu Power had argued that the Lamu coal-fired plant adhered to AfDB's energy policy and would provide cost-effective power. However, the project's future remains uncertain following AfDB's decision to switch to renewable energy.
