Kenya and Germany through the EU have signed two loan deals to finance a hydro-power plant in Migori county.
The €55 million [Sh8.3 billion] loan agreement, which is part of EU’s Global Gateway strategy, was penned by Treasury CS John Mbadi and Germany Ambassador Sebastian in the presence of EU Ambassador Henriette Geiger. Also present was Kristina Laarmann, the director of KfW Kenya office, Germany’s development bank that finances projects in developing countries and emerging economies, and Maren Kneller, Head of German Cooperation.
The financing comprises €35 million for the redevelopment of the Gogo Hydropower Plant and an additional €20 million grant funding, financed by the EU and managed by KfW to provide investment grants and technical assistance for four renewable energy projects, including the Gogo Hydropower Plant. The project is under EU’s Green Resilient Electricity System (GRES) programme.
The EU said with the funding, the plant will see its generation capacity expanded from 2 MW to 8.6 MW.
“This will enhance grid stability in western Kenya, reduce power outages, contribute to Kenya’s ambition of achieving 100% renewable energy by 2035 and contributes to the country’s sustainable economic growth. Under the grant component, the project will also deliver community benefits such as improved local infrastructure and opportunities for women in energy-related fields,” it said.
Ambassador Geiger termed the deal milestone in EU’s support for Kenya’s energy transition.
“Through Global Gateway, the EU is investing in sustainable, people-centred infrastructure that helps reduce emissions, stabilise the grid, and create opportunities for local communities. The Gogo Hydropower Plant represents more than generating clean energy; it is about resilience, inclusivity, and strengthening Kenya’s green leadership in the region,” Geiger said.
On his part, Amb Groth noted that the project is part of the long-standing cooperation between Kenya and Germany in the energy sector. He said the partnership now comprises projects worth around €400 million [Sh60 billion] in renewable energy and energy efficiency.
“With the redevelopment of the Gogo Hydropower Plant we are delighted to support Kenya’s ambitious climate targets and further strengthen our partnership in the field of climate and energy, concluded between Germany and Kenya in 2022,” he added.
Treasury said the project, which will be undertaken by KenGen, will enhance electricity supply in the Western and Nyanza regions by reducing grid losses and improving reliability.
EU’s Global Gateway, a countermeasure to China’s Belt and Road Initiative, is expanding electricity access through the Green Resilient Electricity System (GRES) programme.
