French loan to boost energy plan

The French government has offered Kenya a concessional loan of 56 million euros (Sh6.7 billion) for the development of renewable energy.

The funds, provided through French Development Agency, will be used to procure two geothermal drilling rigs and prepare a national power generation and transmission master plan.

The government created the Geothermal Development Company as a special purpose company to speed up the development of this resource.

At least 2,000 MW over the next 10 years, are expected to come from geothermal sources.

This is to be achieved through purchasing six drilling rigs between 2010 and 2013. 

The master plan being developed by the ministry of Energy will help to assess and prioritise development of its potential power generation sources.

Kenya is facing challenges meeting its domestic electricity power demand, which is estimated to be growing at eight per cent per year.

The government has embarked on an ambitious power generation expansion programme.