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Kenya boosts 100% renewable energy development goals, joins regional initiative
Kenya has taken a significant step towards achieving 100% renewable energy development by becoming a member of the Regional Liquidity Support Facility (RLSF), a key initiative facilitated by the African Trade Insurance Agency (ATIDI).
The RLSF seeks to provide critical support to renewable energy projects across the region, particularly Independent Power Producers (IPPs) selling electricity to state-owned utilities.
The RLSF, acting as a credit enhancement instrument, has expanded its scope to include eligible transmission projects, encouraging private sector participation in this crucial sub-sector. ATIDI, with investment loans from KfW and Norad, will issue RLSF policies for a maximum period of 15 years, covering up to twelve months' worth of project revenue, the Star reports.
This move aligns with Kenya's aspirations to leverage its abundant natural resources for clean energy generation and strengthen power transmission capacity. With over 80% of its electricity already sourced from renewables, Kenya aims to transition to 100% clean energy by 2030.
Kenya's National Treasury CS, Njuguna Ndung'u said, "The provision of RLSF policies will hopefully enable more projects to advance while reducing the need for government-backed credit enhancement tools.''
He further emphasised the government's commitment to encouraging private sector participation in financing crucial infrastructure and positioning renewable energy plants and transmission infrastructure as key priorities.
RLSF policies have already spurred funding for six renewable energy projects in fellow member states, amounting to $207.5 million in investments.
