Kenya signs $USD 110 million geothermal loan with German KFW
As part of the deal with KFW, 35% of the loaned $110 USD million would go towards the geothermal development of the Bogoria-Silali project.
This past weekend, local Kenyan news source reported that the country’s National Treasury signed last Thursday a Sh9.56 billion credit or $n USD 110 million with German Development Agency (KfW) with “a grant component of up to 35 per cent towards of geothermal steam fields at the 3,000MW-capacity Bogoria-Silali project.”
The same source informs that said loan has an interest of 1.75 per cent to be repaid in 10 years and a 5 year grace period.The main aim of these funds will got to exploration and appraisal of 20 geothermal steam wells, infrastructural development and conduct further feasibility study in the area.
As previously reported, Kenya has great geothermal potential and their government is actively seeking to develop said potential, yet more financing is needed to advance. Giving Kenya access to geothermal energy can significantly lower the price of electricity and bolster competitiveness in the country.
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Source: All Africa Website