Posted on :Monday , 21st November 2022
The UK government has agreed to invest US$4 billion (KES 500 billion) in Kenya to support the country's efforts to combat climate change.
The UK Prime Minister Rishi Sunak met with Kenyan President William Ruto at COP27, agreeing a five-year investment deal that will see climate finance flow into the African country.
These new, clean and green investments will become flagship projects of the UK-Kenya Strategic Partnership.
The projects include: new geothermal and solar energy generation at Menegai and Malindi; a US$3.49 billion (KES 425 billion) Public Private Partnership to deliver the Grand High Falls Dam.
The dam is expected to which will generate a gigawatt of renewable power and provide an area over twice the size of the Maasai Mara with drought-combating irrigation solutions.
In addition, the investment will also support the green regeneration of central Nairobi anchored around a new central rail station.
The deal also allocates a US$262.94 million (KES 32 billion) investment in a climate-resilient agriculture hub for the Lake Victoria region in Kisumu that will create 2,000 direct jobs and provide an income for a further 20,000 farmers.
The UK Government will commit US$16.43 million (KES 2 billion) to a new guarantee company that will lower investment risk and unlock US$98.60million (KES 12 billion) of climate finance for Kenyan projects over the next 3 years, through collaboration with CPF Financial Services and other private investors.
The Prime Minister praised President Rutoâ€™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 in Glasgow.
Throughout its COP26 Presidency, the UK has worked with partners across Africa to deliver and build on the Glasgow Climate Pact, and to see commitments made at COP26 turned into action.
For instance, in Kenya since COP26 US$6.23 million(KES 758.94 million) has been committed and US$3.23 million (KES 393.53 million) will be spent to support Kenyaâ€™s energy transition, unlocking private sector investment in forest protection and the Kenyan Governmentâ€™s ambitious 10% forest cover target.
The UK recognizes that there is further work to do. 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.
British High Commissioner to Kenya Jane Marriott, concludes, â€œThe UK and Kenya go far when we go together.
â€œBy 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 â€“ with mutual benefits for both our countries.â€