World Bank approves $180m loan for Kenya’s energy sector
London, April 30, 2018 (AltAfrika)-The World Bank approved a $180 million loan guarantee on Monday for Kenya Electricity Generation Company to help strengthen the financial position of the state-run company, which produces more than 70 percent of the country’s electricity.
The guarantee will help in long-term commercial financing of up to $300 million to refinance part of KenGen’s existing commercial loans, enhance its credit quality and promote further development of renewable energy in Kenya, the World Bank said.
Kenya has an installed generating capacity of 2,370 MW and peak demand of about 1,770 MW. KenGen, which is 70 percent owned by the government, has an installed capacity of 1,631 MW.
Demand for electricity is growing at about 8 percent a year according to the government’s transmission and generation plan.
It relies heavily on renewables such as geothermal and hydropower.
Kenya’s energy minister ordered the sector regulator on Friday to review electricity tariffs after persistent complaints by consumers that electricity distributor Kenya Power was overcharging them.