The African Development Bank (AfDB) and Geothermal Development Company (GDC) have launched the new Menengai geothermal project in Nairobi, Kenya.
The project secured $125m loan from the African Development Fund, AfDB’s concessionary and a grant of $25m from the scaling-up renewable energy program under the Climate Investment Funds.
AfDB regional director for East Africa Gabriel Negatu, said: "Kenya has been sitting on this amazing natural resource and today, at long last, the ingredients for tapping into it seem to be coming together."
GDC managing director and chief executive officer Silas Simiyu said "The loans will be critical in affording Kenya an opportunity toward energy sustainability and independence."
The project will produce electricity to meet the need of 500,000 households and offset two million tonnes of CO2 annually.
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By GlobalDataOn completion, the project will provide electricity to 300,000 small businesses and provide a further 1000 GWh to other businesses and industries.
The project is the first geothermal project developed exclusively by GDC, a state-owned company.
