The funding will support Kenya’s aims to secure renewable energy sources amid climate vulnerability.

An infrastructure investment company has provided debt funding to a solar project in Kenya, in support of Africa’s alternative energy generation sector.

The Emerging Africa Infrastructure Fund (EAIF), which is part of the Private Infrastructure Development Group (PIDG), has provided a US $35m loan over a 15-year term in order to support to building of a 40 MW Kesses solar generation facility.

The facility will be located near Eldoret in the Rift Valley region of Kenya.

“The Kesses plant brings multiple benefits to Kenya’s economic development,” said Sine Zulu, an Investment Specialist at EAIF’s investment managers, Ninety One.

“It will also play an important part in combatting climate change and strengthening Kenya’s ability to recover from Covid-19.”

Indeed, the construction of the solar project in Kenya and therefore support of sustainable practices is essential to nation, which has been affected by incidents of climate disaster since 2021. The EAIF has also provided economic support to renewable energy projects in other countries in Africa.

The continent itself is particularly susceptible to environmental damage, with eight African countries being among the ten countries most vulnerable to climate change.

The solar project in Kenya will cost a total of US $87m, and will also be financially supported by Alten Kenya Solarfarms BV (Alten), which is part of the Alten Energías Renovables Group, an independent power producer.

The Alten Energías Renovables Group has industry knowledge in developing, financing and operating photovoltaic solar power plants in Sub-Saharan Africa, Central America, and Europe.

The project will also be aided by Standard Bank, a long-established lender to EAIF, which will supply US $41m in debt comprising a term loan, VAT and Debt Service Reserve facility.

“With the Kesses Project, Standard Bank has been able to provide continued support to the use of clean energy across the African continent allowing for a more sustainable future,” said Sherrill Byrne, Executive Energy and Infrastructure Finance at Standard Bank.

The construction of the solar project in Kenya is expected to be completed by spring 2022.