Over 700,000 Kenyans are set to benefit from cheap, clean and reliable energy after the UK government announced a Ksh13.5 billion investment in Menengai geothermal project in Nakuru County.
According to UK High Commissioner to Kenya, Jane Marriott's statement dated Thursday, February 9, Globeleq, a private power company in Africa, had executed an engineering, procurement and construction (EPC) contract.
That followed a long-term service agreement with Toyota Tsusho Corporation (TTC) for the 35Mega Watts Menengai geothermal project.
The Ksh13.5 billion (USD 108 million) Menengai project will be the company's first geothermal plant, with Geothermal Development Company (GDC) supplying steam to the project to generate power.
Once operational, electricity will be sold to Kenya Power under a power purchase agreement.
It was expected to deliver clean and cheap baseload power to the national grid and enable GDC to monetise the available steam resources from the Menengai steam field.
The project's breakthrough followed the successful signing of an agreement in December 2022 with the African Development Bank, the Eastern and Southern African Trade and Development Bank and Finnfund.
Signing of the agreement followed a meeting between President William Ruto and UK Prime Minister Rishi Sunak, who pledged to fast-track the investment of Ksh500 billion towards different projects in the country.
"We’re committed to supporting infrastructure in Kenya, and we’re ready to deliver," Marriott stated.
"Jobs and clean energy at Menegai Geothermal in Nakuru, which will provide cheap, clean and reliable energy to over 700,000 Kenyans," she added.
According to Globeleq, the project will commence during the first quarter of the 2023 financial year.
It will operate and maintain the power plant from 2025. Fuji Electric will manufacture the steam turbine and generator.
"Looking forward to final documents from the government of Kenya this month to enable ground-breaking in March," Marriott announced.
