The African Development Bank (AfDB) and the United Kingdom have jointly chosen Kenya’s Transmission Network Improvement Project for support under the Room to Run Sovereign transaction (R2RS).
As a result, a significant portion of the Sh.18.9 billion ($116 million) project cost, specifically the climate mitigation component amounting to Sh.9.6 billion ($59 million), is backed by a guarantee from the UK government.
Approved last year, the project aligns with the UK’s commitment to address Kenya’s challenges related to transmission network capacity, electricity supply reliability and quality, and power system losses.
Neil Wigan OBE, High Commissioner to Kenya, emphasized the collaboration’s goal of providing reliable power for sustainable economic growth using green energy.
He stated, “The UK and Kenya are going far and going together.”
The Room to Run Sovereign transaction (R2RS), unveiled at COP26 in November 2021, aims to enhance funding for critical climate change projects.
Under R2RS, the UK government and the City of London insurers provide a Sh.326 billion ($2 billion) guarantee to the AfDB, facilitating an additional $2 billion of climate finance for Africa by 2027.
Kevin Kariuki, Vice-President for Power, Energy, Climate, and Green Growth at AfDB, highlighted the significance of this initiative in responding to COP27 stakeholders’ call for Multilateral Development Banks to innovate and upscale climate finance.
Kenya’s power transmission upgrade project, part of AfDB’s Last Mile Connectivity Program, aims to extend and strengthen the national electricity grid system.
In May of the previous year, the UK and AfDB announced the initial R2RS-enabled projects, focusing on an Egyptian wastewater initiative and a water sanitation project in Senegal.
($1=Sh.163.50)
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