US Unveils Ksh12.4B Funding to Transform Kenya's Energy Landscape

President William Ruto (right) and USAID administrator Samantha Power discuss the US-Kenya partnership at State House on June 21, 2023.
President William Ruto (right) and USAID administrator Samantha Power discuss the US-Kenya partnership at State House on June 21, 2023.
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Samantha Power

United States Agency for International Development (USAID) on Wednesday, June 21, announced a Ksh12.4 billion grant to aid in providing access to cleaner and reliable energy across East Africa.

In a statement, USAID administrator Samantha Power revealed that the program will support 10 million households and businesses to get access to electricity.

The program will also mobilise Ksh659 billion to drive public and private investments to support 1,277 megawatts of clean energy capacity. 

The aim, according to the administrator, is to accord 50 million people across the region access to electricity generated from cleaner fuel sources.

USAID Power administrator Samantha Power (left) and US Ambassador Meg Whitman during a conference in Nairobi on June 21, 2023.
USAID Power administrator Samantha Power (left) and US Ambassador Meg Whitman during a conference in Nairobi on June 21, 2023.
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Meg Whitman

 To achieve this, the program will facilitate the construction of 1,500 kilometers of additional transmission lines, reinforcing the initiative.

Further, Power praised the relationship between the US and Kenya and emphasised the superpower's commitment to supporting Kenya in clean energy initiatives.

"US-Kenya ties are producing results as the US is now Kenya’s largest export market. We provide drought assistance, support Kenya’s energy sector which uses 90 per cent renewables and spur tech partnerships in Silicon Savannah,” she stated.

According to Power, the program has successfully connected over 172 million people across Africa. International actors have consistently emphasised the urgency for the African continent to accelerate its transition towards sustainable power.

In May 2023, the International Energy Agency (IEA) released a report confirming the steady transition of numerous African countries away from fossil fuels. This report further reinforced the support for the notion that the shift towards sustainable energy sources in Africa was gaining momentum.

National Assembly Finance and Planning Committee Chairperson Kuria Kimani on Thursday, June 22, revealed that Kenya Kwanza's proposal to increase the fuel Value Added Tax (VAT) from 8 per cent to 16 per cent was driven by international obligations.

He added that the government was committed to reducing the usage of fossil fuels and transitioning the country towards clean energy.

“There is a global discussion about climate change and going green. Many countries across the world are moving away from consumption of fossil fuel to consumption of clean energy,” Kimani stated.

Ruto ILO
President William Ruto during the International Labour Organisation (ILO) in Geneva on June 15, 2023, and COTU Secretary General Francis Atwoli in the background.
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