A day after President William Ruto urged lenders to advance growing economies loans under favourable terms, Climate Investment Funds (CIF), a multilateral climate fund, has advanced Kenya Ksh11 billion (USD70 million).
The lender in a statement noted that the money would be used to help the country integrate more renewable energy into the main grid.
CIF’s loan which consists of Ksh811 million in the form of a grant is part of Kenya’s ambitious project to raise Ksh49 billion which will be used to fully turn Kenya into a renewable energy consumer by 2030.
“This approval, as part of CIF’s Renewable Energy Integration (REI) investment program, will support Kenya’s ambition to reduce greenhouse gas emissions by 32 per cent by 2030 and achieve Net Zero by 2050,” a statement from CIF read in part.
Some of the other institutions that will help Kenya hit the Ksh49 billion target include the African Development Bank and the World Bank Group.
The money will solely be used by Ruto’s administration to support access to clean, adequate, affordable, and reliable electricity.
CIF noted that Kenya had 90 per cent renewable energy but the main grid faced challenges.
“During evening hours, it struggles to meet peak demand, but later, at night, generation surpluses from geothermal and wind are sometimes not dispatched,” the statement from CIF read in part.
To handle that, Kenya will be expected to use the cash to improve dispatch, grid stability and flexibility.
Additionally, part of the sum will be used for future investment in storage technologies including pumped hydropower.
Notably, Kenya was selected among 10 other countries to benefit from the RIE program which will see developing countries receive more climate finance funding.
“REI can support a mix of supply/demand side flexibility measures while advancing social inclusion and leveraging private sector financing,” CIF remarked.
