The Emerging Africa Infrastructure Fund (EAIF) has provided a Ksh. 4 billion (USD 35 million) loan over a 15 year term to the 40MW Kesses solar generation project to be built near Eldoret. The project will cost a total of Ksh. 10 billion (USD 87 million). The first part of the loan was disbursed to Alten Kenya Solarfarms BV (Alten), the Kenyan business of the Alten Group, in late December 2021.
Kenya has become the 9th African country where EAIF, which is part of the Private Infrastructure Development Group (PIDG), has supported renewable energy projects in recent years. Others are Burkina Faso, Cameroon, Côte d’Ivoire, Mali, Mozambique, Rwanda, Tanzania and Uganda.
Commenting on the project, Sine Zulu, an Investment Specialist at EAIF’s investment managers, Ninety One, said, “The Kesses plant brings multiple benefits to Kenya’s economic development. It will also play an important part in combatting climate change and strengthening Kenya’s ability to recover from COVID-19. EAIF is now established as a lender of choice for renewable energy companies investing in Africa.”
Standard Bank was the mandated lead arranger of the project finance to Alten. The Bank is supplying Ksh. 4.6 billion (USD 41 million) in debt comprising a term loan, VAT and Debt Service Reserve facility. Standard Bank is acting through its CIB and Stanbic Bank Kenya Limited divisions.
“With the Kesses Project, Standard Bank has been able to provide continued support to the use of clean energy across the African continent allowing for a more sustainable future. This is the second project Standard Bank has funded with the Alten Group and we were pleased to be able to bring in and partner with EAIF for the funding,” says Sherrill Byrne, Executive Energy and Infrastructure Finance at Standard Bank.