President William Ruto, on Thursday, March 30, disclosed that a US company, Milele Energy, had acquired part of the Lake Turkana Wind Power Project and harboured its expansion plans.
The head of state made the announcement while speaking with delegates at the American Chamber of Commerce Regional Business Summit in Nairobi.
According to Ruto, many innovative companies settled in Kenya to exploit the country’s green energy sector, which has a huge growth potential in this priority sector.
Lake Turkana Wind Power Project (LTWP) is one of the largest in Africa. In 2022, it produced over 20 per cent of Kenya’s electricity. President (Rtd), Uhuru Kenyatta launched the Ksh90 billion (USD682) project in July 2019.
“Kenya is a global leader in clean energy solutions. US companies are big investors in Kenya and East Africa’s off-grid sector, with over 40 per cent market share. These companies are providing millions of people access to the life-changing benefits of power.
“In the past year, these companies have provided more than 860,000 Kenyans access to off-grid connections and worked with industry leaders to raise more than Ksh16 billion (USD120 million) for the sector's development. US company d.light alone will support at least an additional 600,000 households to access clean energy solutions,” Ruto stated.
In 2021, reports claimed that taxpayers paid private investors Ksh18 billion due to delays in connecting the Lake Turkana Wind Power (LTWP) to the national grid.
A 381-day delay in completing the 428-km high-voltage power line from Marsabit to the Suswa substation in Narok, was attributed as the major cause of the payout.
Meanwhile, Ruto also confirmed that Symbion Power, another American company, was closing in on a deal to develop a geothermal plant in the Rift Valley.
“I am also delighted that plans are moving forward for Kipeto 3, a new 50-megawatt grid-connected wind power plant with an integrated battery storage component,” he announced.
The deals came when the government was under pressure to regulate the energy sector and lower electricity prices. As of April 1, 2023, electricity prices will increase by up to 63 per cent, after the Energy and Petroleum Regulatory Authority (EPRA) reviewed rates on Friday, March 24.
Consumers using 30 units and below will pay Ksh12 per unit from Ksh10, while those using eleven and ten units will pay Ksh15.80 per unit, according to EPRA.
Other Deals Ruto Secured With US Companies
Ruto announced more deals with US companies, hours after holding a virtual meeting with US President, Joe Biden, and other world leaders at the Democracy Summit held online.
“I underscored our commitment to constitutionalism, the rule of law and respect for institutions,” Ruto stated, seemingly referring to the nationwide protests by the opposition leader, Raila Odinga.
Raila has declined to recognise Ruto as President, despite the US, the UK and other foreign powers backing the head of state. The American Chamber of Commerce Regional Business Summit in Nairobi further highlighted Washington’s deep-rooted interest in Kenya.
Ruto, who has enjoyed the West’s backing, stated that the summit reinforces Kenya’s relationship with the Us, a friendship that stands firmly on the sound foundation of shared values, including a commitment to liberty, democracy, and free enterprise.
Other deals the President secured, among others, included;
Del Monte, the largest private sector employer in Kenya, investing Ksh773 million ($5.5 million) in a new state-of-the-art fresh fruit packing facility, as part of its diversification programme. Del Monte plans to source pineapples, avocados, mangoes and French beans from farmers in Murang’a, Kiambu, Machakos and other counties, engaging about 2,000 local farmers.
Kentegra, a US-Kenya company, was given the green light to restore the country’s position as the leading producer of organic pyrethrum insecticide. It is building a new pyrethrum refinery in Nakuru.
Sanergy, a US investment and innovative company that turns waste into fertiliser, fuel and animal feed, will expand its farm and organic waste collection.
i-Procure, the largest agricultural supply chain platform in rural Africa, will scale up its distribution model to reach an additional 1 million smallholder farmers in Kenya with affordable agriculture inputs.
“US company Victory Farms also produces high-quality tilapia, empowering communities and creating employment,” Ruto highlighted.
