Government and Policy News

UK, Kenya to partner on Grand High Falls Dam, other climate-friendly projects

UK, Kenya to partner on Grand High Falls Dam, other climate-friendly projects
(Photo by Sergey Pesterev on Unsplash)

The UK and Kenya have agreed to fast-track six projects worth KES500 billion (US$4.1 billion) to accelerate the flow of climate finance into Kenya, after a meeting by the UK Prime Minister and Kenya’s President at the COP27 climate summit.

The projects that are the subject of the five-year agreement include Grand High Falls Dam and an associated hydroelectric powerhouse and will become flagship projects of the UK-Kenya Strategic Partnership, according to a release.

The Prime Minister praised President William Ruto’s pioneering climate leadership and urged Kenya to continue along the path of green growth, urging all countries to deliver on the commitments made at COP26. During his recent visit to Kenya, COP President Alok Sharma reaffirmed the need for progress on access to finance and transformational adaptation action by COP27.

“The UK and Kenya go far when we go together. By fast-tracking finance into these clean, green projects with honest, reliable investment the UK is supporting Kenya to advance and maintain its continent-leading climate credentials – with mutual benefits for both our countries,” said British High Commissioner to Kenya Jane Marriott.

The projects to be fast-tracked are:

Grand High Falls Dam: KES425 billion ($3.5 billion) investment. A public-private partnership on the Tana River that will provide 1 GW of hydroelectric energy capacity and irrigation for 400,000 hectares of farmland. Led by UK engineering firm GBM, the project is envisaged to include a power purchase agreement for clean energy and a water purchase agreement for agricultural irrigation.

Malindi Solar Expansion: KES7.5 billion ($61.6 million) investment. A 40 MW solar plant, constructed by UK company Globeleq with finance from British International Investment, that was connected to the grid in December 2021. Plans will double the size and add battery storage – an additional KES7.5 billion investment.

Menengai Geothermal: KES12.5 billion ($102.7 million) investment. A 35 MW geothermal project led by GDC and Globeleq that will mark the full development of a field discovered by GDC. The project has a signed and effective PPA with KPLC that confirms one of the cheapest tariffs for baseload renewable power.

Nairobi Railway City: KES11.5 billion ($94.5 million) investment. A green regeneration of central Nairobi, anchored around a new central rail station connected to Bus Rapid Transit, incorporating the latest innovations in green building technology and planning. The project has been developed with technical assistance from the UK Government, and UK architects (Atkins) won the contract to design the new station.

United Green: KES31 billion ($254.8 million) investment. A climate-smart crop and agro-industrial processing system via a joint venture with Kisumu County that will create 2,000 direct jobs and provide income for a further 20,000 farmers across counties the Lake Victoria region.

Guarantees: The UK Government, through the Private Infrastructure Development Group, is collaborating with CPF Financial Services and other private investors to launch a guarantee company that will de-risk investments and unlock private finance from pension funds and insurance companies for projects in Kenya. The UK government will commit KES2 billion ($16.4 million) to the company, which will mobilize KES12 billion ($98.6 million) of new climate finance for Kenyan infrastructure over the next three years.