UK Backs New Clean Energy Projects Worth KSh 1b In Kenya Ahead Of COP28

• UK and Kenya have progressed with transport, geothermal, and agriculture projects agreed upon at the COP27 summit in 2022
• The UK has helped design President William Ruto's government's green industrialisation initiative
• The UK has also announced an additional investment of $7.1 million (KSh 1.1 billion) million for solar-powered irrigation and 100 electric buses

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenya has received additional support from the UK government for climate change solutions.

The UK High Commission in Nairobi announced new investments in solar-powered irrigation and 100 electric buses.

The $7.1 million (KSh 1.1 billion, depending on the current exchange rate) deal came ahead of the COP28 convention.

How the UK-Kenya new climate fund will work

British International Investment will announce KSh 1.1 billion for two projects in Kenya as part of a wider investment package in Africa.

KSh 321 million ($2.1m) will provide solar-powered and water-efficient irrigation systems to 9,000 farmers in Kenya.

This will help increase farmers' income, build their resilience, and adapt to the impact of climate change.

The upfront cost of the irrigation systems will also be reduced by 25-40% through an innovative carbon credit facility, making the systems more affordable for farmers.

KSh 765 million ($5m) will go towards manufacturing 100 electric buses in Kenya that will meet Kenyans' demand for affordable but clean public transport.

As they replace diesel-powered polluters, they will stop 5,000 tonnes of CO2 from entering the atmosphere every year.

"It is a sign of the strength of the UK-Kenya Strategic Partnership that these three projects have reached new milestones by COP28. The UK and Kenya are going far and going together," said UK High Commissioner to Kenya, Neil Wigan.

UK climate projects in Kenya

UK confirmed that the flagship climate projects fast-tracked at COP27 between the UK and Kenya have reached milestone achievements, with multiple projects making progress since last year’s climate summit.

The Menengai Geothermal project - worth KSh 12.5 billion - is expected to generate 35MW of electricity, provide approximately 750,000 Kenyans with affordable, clean energy, and create 200 jobs during construction.

The project is proceeding to financial close, with construction expected to begin shortly after.

"The UK has also supported the design and development of President Ruto’s new industrialisation initiative for Africa – the Africa Green Industrialisation Initiative (AGII). The projects support this initiative by creating jobs, increasing economic growth and boosting trade," read the High Commission statement in part.

These are the latest developments for the six deals agreed between President Ruto and Prime Minister Sunak at COP27 – which total over KES 500 billion of investment.

Other mega deals between Keny and the UK

A KSh 31 billion agreement has also been reached with the Kenyan Development Corporation and UK-funded investor United Green to establish an area bigger than Nairobi National Park for climate-smart farming.

The deal is expected to save Kenya $200m annually on food imports and help reduce Kenya’s trade deficit.

These investments are flagship projects of the UK-Kenya Strategic Partnership – an ambitious five-year agreement unlocking mutual benefits for the UK and Kenya.

In September 2023, the UK announced plans to finance projects worth £49 million (KSh 9.02 billion) during the Africa Climate Summit (ACS) 2023.