Sessional Paper No. 02 of 2011 on Kenya Government Guarantee of a Loan of Eur 60,000,000.00 Equivalent to Ksh 7,560,000,000.00 From the KFW, Frankfurt Am Main to the Kenya Electricity Generating Company for Financing the 280MW Olkaria I and IV Geothermal Power Plant

Abstract

The Kenya Government is, in the context of the national Vision 2030, committed to transforming Kenya to a middle income country by 2030. To realize this objective means, among other things, the country must accelerate economic growth to around 10 percent annually and sustain it at that level for a long period. To achieve and sustain such high growth rates requires ample supply of electricity at competitive prices. At present, there are no such favorable conditions in the country. This project is therefore meant to create a conducive investment climate and enabling environment for economic growth in Kenya. The implementation of Olkaria I and IV projects will contribute an additional 280MW to the national power grid. With the full support of the Government, . KenGen has successfully negotiated for a loan of EUR 60 million equivalent to Ksh 7.5 billion from KfW, Frankfurt am Main, Federal Republic of Germany to co-finance Olkaria I and IV geothermal power plants to generate 280MW of electricity.