The Chinese government is set to invest Sh100 billion (over USD 900 million) in the country’s energy sector over the next 30 years.
This follows the amendment to a 2013 memorandum of understanding (MOU) that will see both governments partner to unlock Kenya’s geothermal potential.
Energy and Petroleum Cabinet Secretary Charles Keter said the partnership with the Chinese government would fast track measures to ensure more geothermal power is available so as to provide cheaper and reliable power.
“We don’t have the money to put in but we have the steam. They don’t have the steam, they have the money so they are coming with the money so that we quantify the equivalence in terms of shareholding, either 50/50 but we leave it for the technical or the legal department,” Mr Keter said on Tuesday.
The new MOU will see the removal of restrictive conditions subjective to modular power plants by allowing the application of suitable technologies by the Chinese firm, China National Petroleum Corporation (CNPC). Through the agreement, KenGen and the Geothermal Development Corporation (GDC) will assist CNPC in drilling steam wells while the latter will invest in putting up power plants.