African Development Bank and Japan have entered an agreement that will see Japan extend up to $6 billion (Sh600 billion) to increase energy access in Africa.
The Initiative will support activities associated with public and private sector energy projects including preparation, construction and operations, through a mix of financing and technical assistance.
AfDB has in recent times increased its focus on Kenya’s energy sector in a bid to bring down the cost for customers.
Among power projects supported by AfDB include the Menengai Geothermal power in Kenya financed by the bank to the tune of $503 million (Sh50 billion).
The plant is expected to have a production capacity of 400 MW to provide reliable, clean and affordable electricity to thousands of households and industries.
In June, AfDB announced another $135 million (Sh14 billion) loan for the second phase of the Last Mile Connectivity in Kenya.
‘’I welcome Japan’s support for the new deal on energy for Africa through this initiative, which is another milestone in the bank’s long-standing collaboration with Japan and a strong endorsement of the bank’s first high five to light up and power Africa,” President Akinwumi Adesina said in a statement.
The implementation will start in the coming weeks to effectively support projects before the end of year.
It will enable countries achieve universal access to energy by 2025.