16 December 2011: The African Development Bank (AfDB) has approved two sources of financing for the Menengai geothermal steam field development project, totaling US$149 million.

Kenya has substantial geothermal energy resources, which it has made a priority as part of its Vision 2030. Kenya’s Vision 2030 sets out goals and objectives to transform Kenya into a “middle-income country providing a high quality life to all its citizens by the year 2030.” As part of this vision, geothermal energy supply is to increase its geothermal energy supply to 500MW.

This funding will assist in developing 400MW of the Menengai field’s 1600MW total potential in its first phase. This will increase total energy supply in Kenya by 20%. The African Development Fund (ADF) will provide US$124 million for the project along with a grant of USD 25 million from the scaling-up renewable energy programme under the Climate Investment Funds, for which the AfDB is an implementing agency. The project is also being co-financed by a group of lenders providing US$503 million, including the French Development Agency, the European Investment Bank as well as the Government of Kenya. The expected completion date is July 2016 and it will be the first ever project under the CIF dedicated to an African low income country to be approved by a multilateral development bank. [AfDB Press Release]