Team Europe, under the European Union’s Global Gateway strategy, has committed to a significant investment in Kenya’s renewable energy sector. At a ceremony in Nairobi, two key financing agreements were signed to support the country’s clean energy transition.
The agreements, totaling €55 million, will fund the redevelopment of the Gogo Hydropower Plant in Migori County and other renewable energy projects. A €35 million sovereign loan, provided by the German government and managed by KfW, will go directly to the National Treasury. Additionally, a €20 million grant from the EU, also managed by KfW, will provide investment grants and technical assistance for four renewable energy initiatives through the Green Resilient Electricity System (GRES) program.
The Gogo Hydropower Plant, operated by Kenya Electricity Generating Company (KenGen), will see its capacity increase from 2 MW to 8.6 MW. This expansion is expected to enhance grid stability in western Kenya, reduce power outages, and help the country achieve its goal of 100% renewable energy by 2035.
The project also includes community benefits, such as improved local infrastructure and opportunities for women in the energy sector.
“The Gogo Hydropower Plant represents more than generating clean energy; it is about resilience, inclusivity, and strengthening Kenya’s green leadership in the region,” said H.E. Henriette Geiger, the EU Ambassador to Kenya.
Germany’s Ambassador to Kenya, H.E. Sebastian Groth, noted that the project is part of a larger cooperation with Kenya on energy and climate, which includes projects worth approximately €400 million.
The GRES program is a flagship initiative of the EU’s Global Gateway strategy, designed to use grants and concessional financing from European partners to create attractive funding packages for renewable energy investments. The collaboration reaffirms the commitment of the EU and Germany to supporting Kenya’s climate goals and ensuring access to affordable and sustainable energy.