Climate finance to flow to Kenya as UK Prime Minister agrees with President Ruto to fast-track KES 500 billion of British investment

F.P. Report

LONDON: The UK and Kenya have agreed to fast-track six projects worth KES 500 billion to accelerate the flow of climate finance into Kenya after the UK Prime Minister and President Ruto met at the COP27 climate summit in Sharm-el-Sheik, Egypt.

These new, clean and green investments will become flagship projects of the UK-Kenya Strategic Partnership – an ambitious five-year agreement that is unlocking mutual benefits for the UK and Kenya.

The projects include: new geothermal and solar energy generation at Menegai and Malindi; a KES 425 billion Public Private Partnership to deliver the Grand High Falls Dam, 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; the green regeneration of central Nairobi anchored around a new central rail station; and a Ksh 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 KES 2 billion to a new guarantee company that will lower investment risk and unlock KES 12 bn 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 Ruto’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 example, in Kenya since COP26 £5.4m has been committed and £2.8m will be spent to support Kenya’s energy transition, unlocking private sector investment in forest protection and the Kenyan Government’s ambitious 10% forest cover target.

But the UK recognises 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.