PRESS RELEASE : UK-Kenya COP27 deals delivering by COP28 as UK backs new climate initiative [December 2023]

The press release issued by the Foreign Office on 5 December 2023.

Flagship UK-Kenya COP27 climate projects have reached milestone achievements ahead of COP28 as UK supports new Africa Green Industrialisation Initiative.

• UK and Kenya have progressed transport, geothermal and agriculture projects agreed at COP27
• The UK has helped design President Ruto’s green industrialisation initiative
• UK will also invest KES 1 billion ($7.1m) million for solar powered irrigation and 100 electric buses

Flagship climate projects fast-tracked at COP27 between the UK and Kenya have reached milestone achievements ahead of COP28 with multiple projects making progress since last year’s climate summit.

The UK has also supported the design and development of President Ruto’s new industrialisation initiative for Africa – the Africa Green Industrialisation Initiative (AGII). The projects support this initiative by creating jobs, increasing economic growth and boosting trade.

The KES 12.5 billion Menengai Geothermal project – which will generate 35MW of electricity, providing approximately 750,000 Kenyans with affordable, clean energy and create 200 jobs during construction, is proceeding to financial close with construction expected to begin shortly after.

A KES 31 billion agreement has also been reached with the Kenyan Development Corporation and UK-funded investor United Green to establish an area bigger than Nairobi National Park for climate-smart farming – this will save Kenya $200m annually on food imports and help reduce Kenya’s trade deficit.

These are the latest developments for the six deals agreed between President Ruto and Prime Minister Sunak at COP27 – which total over KES 500 billion of investment. Exactly one month after the 2022 summit in Egypt, construction began at Nairobi Railway City – a green, urban regeneration project centred around a new railway station in Nairobi. Ground was broken at Menengai Geothermal in June of this year, and the United Green-KDC agreement becomes the latest milestone.

These investments are flagship projects of the UK-Kenya Strategic Partnership – an ambitious five-year agreement which is unlocking mutual benefits for the UK and Kenya – and do not load Kenya with unsustainable debt.

British International Investment will also announce KES 1 billion ($7.1m) for two projects in Kenya, as part of a wider package of investment in Africa.

KES 321 million ($2.1m) will provide solar-powered and water-efficient irrigation systems to 9,000 farmers in Kenya, which will help to increase farmers income as well as build their resilience and adapt to the impact of climate change. The upfront cost of the irrigation systems will also be reduced by 25-40% through an innovative carbon credit facility, making the systems more affordable for farmers.

KES 765 million ($5m) will go towards the manufacture of 100 electric buses – in Kenya – that will meet Kenyan’s demand for affordable but clean public transport. As they replace diesel powered polluters, they will stop 5,000 tonnes of CO2 entering the atmosphere every year.

British High Commissioner to Kenya, Neil Wigan, said:

It is a sign of the strength of the UK-Kenya Strategic Partnership that these three projects have reached new milestones by COP28. The UK and Kenya are going far and going together. We are proud to support the President’s AGII. Combined with these investments from British International Investment, the UK and Kenya will deliver what Kenya’s people want – growth, jobs and trade – in a way that is sustainable and protects our planet”.