AfDB Loans Kenya KSH 9.6 Billion to Upgrade Electricity Grid System

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The African Development Bank and the United Kingdom have chosen the Transmission Network Improvement Project in Kenya as a beneficiary project under the Room to Run Sovereign transaction (R2RS). The UK government will guarantee a Ksh.9.6B AfDB loan towards Upgrade of Kenya’s Power Transmission Line.

The objective of the project is to improve; power transfer capacity, quality of electricity supply, supply reliability of high voltage (HV) transmission network and enhance socio-economic development in the targeted areas.

It also aims to improve efficiency of supply by reducing technical losses and providing evacuation alternatives for renewable (particularly solar, geothermal and hydro) power generation sites in the project targeted areas.

AfDB Project Details

The project includes the construction of HV Transmission Lines 132 and 220 kV, Kabarnet to Rumuruti, Narok to Bomet and Weru to Malindi & Kilifi.

Secondly, the construction of HV Substations 132 and 220 kV, in the associated Substations. Lastly, Project Supervision and Management Consultancy services, and Technical Assistance & Capacity building programs.

AfDB Vice-President for Power, Energy, Climate and Green Growth, Kevin Kariuki said, “This transaction is one of several projects constituting its lending programme through which the African Development Bank fulfils the call by stakeholders at COP27 for MDBs to innovate and scale up climate finance through the Multilateral Development Banks.”

Approved in 2023, this project has previously received financing from the Korean Exim Bank (“EDCF”) through AFDB. The project will extend and reinforce the national electricity grid system.

Addressing the transmission system gaps in the country is a prerequisite for achieving universal electricity access and improving the quality of life of communities through enhanced socioeconomic development.

Nnenna Nwabufo, AfDB Director General for East Africa added: “Kenya is close to achieving universal electricity access with a high component of renewable energy.”

Last year, Kenya received KES 130m from the bank’s Electric Vehicle Fund.