The United Kingdom has guaranteed a Sh9.6 billion loan from the African Development Bank (AFDB) to Kenya in climate financing.
This is after the country was selected as a beneficiary of the Transmission Network Improvement Project under the Room To Run Sovereign Transaction (R2RS).
British High Commissioner to Kenya Neil Wigan stated that the funds will be used for power transmission network improvement.
“Powering economies requires power for people. We’re working together with the AfDB and Kenya to deliver what Kenyans want and need: reliable power for reliable economic growth all with green energy that protects the prospects of future generations. The UK and Kenya are going far and going together,” he stated.
The announcement follow recent incidences of power blackouts that have previously hit the nation including major installations like the Jomo Kenyatta International Airport (JKIA).
“This transaction is one of several projects constituting its lending programme through which the African Development Bank fulfils the call by stakeholders at COP27 for MDBs to innovate and scale up climate finance through the Multilateral Development Banks. The African Development Bank is proud to partner with the UK in this initiative and to be at the forefront of such developments,” averred African Development Bank Vice-President for Power, Energy, Climate and Green Growth, Kevin Kariuki.
ADB’s DG for East Africa Nnenna Nwabufo maintained that “Kenya is close to achieving universal electricity access with a high component of renewable energy. This represents a major milestone in both sustainable development and the fight against climate change.”
The project is one of five projects to benefit from the unlocked lending capacity provided by R2RS since the agreement was signed in 2022.
