The World Bank today approved a $180 million International Development Association (IDA) Guarantee to mobilize private sector financing to strengthen the financial position of Kenya Electricity Generation Company Limited (KenGen) and build energy security for the country.
“Affordable and accessible electricity is essential to ensuring that Kenyan businesses remain competitive in the international market…….This is what Kenya needs if it is to achieve a middle-income economy status by 2030.” said Diarietou Gaye, World Bank Country Director for Kenya.
KenGen today manages 70% of Kenya’s generation capacity of 1,631 megawatts making it one of the largest in East Africa. The project supports KenGen in raising up to $300 million in long-term commercial financing to be used to refinance an expensive portion of KenGen’s existing commercial loans.
“This IDA Guarantee will solidify KenGen’s financial position as the company pursues its aspirations towards geothermal development, building energy security for all Kenyans, and becoming a sustainable energy hallmark in Africa,” said Mariano Salto, World Bank Energy Economist and Task Team Leader.