Kenya sells part of Turkana Wind Power to US Company

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Kenya sells part of Turkana Wind Power to US Company

Kenya has recently sold a part of its Turkana Wind Power project to the US-based company, Africa Renewable Energy Fund (AREF). The deal, which was signed in early 2023, is expected to boost Kenya’s renewable energy sector and improve access to electricity for its citizens.

The Turkana Wind Power project is a 310 MW wind farm located in northern Kenya. It is the largest wind power project in Africa and is expected to provide electricity to over one million people in Kenya. The project was initiated by the Kenyan government in 2011 and was completed in 2021 at a cost of $680 million.

Under the agreement, AREF will acquire a 20% stake in the project, which is expected to generate significant returns for the company. AREF is a private equity fund that invests in renewable energy projects across Africa. The fund was established in 2013 by the African Development Bank (AfDB) and currently manages over $250 million in assets.

The sale of a part of Turkana Wind Power to AREF is expected to attract more investment into Kenya’s renewable energy sector. This is important for Kenya, as the country aims to increase its renewable energy capacity to 5,000 MW by 2030. This will require significant investment in wind, solar, and geothermal power projects.

The deal is also expected to improve access to electricity in Kenya, particularly in rural areas. Kenya has made significant progress in increasing access to electricity over the last decade, with the electrification rate rising from 23% in 2009 to 75% in 2021. However, access to electricity in rural areas remains low, with only 38% of rural households having access to electricity.

The Turkana Wind Power project is expected to contribute significantly to improving access to electricity in rural areas. The project will provide electricity to over 800,000 households, schools, and health facilities in the region. This will have a positive impact on the livelihoods of the people in the region and is expected to spur economic growth.

In conclusion, the sale of a part of Turkana Wind Power to AREF is a significant development for Kenya’s renewable energy sector. The deal is expected to attract more investment into the sector and improve access to electricity in the country, particularly in rural areas. This will have a positive impact on the livelihoods of the people in the region and is expected to contribute to economic growth in Kenya.