Germany through the German Development Bank (KfW) will spend Sh6 billion towards the rehabilitation of two geothermal power plants in Olkaria, Naivasha.
The move is part of support of Kenya's efforts to phase out thermal power for green energy by the year 2030.
A delegation from Germany is expected in the country to tour several development projects including the geothermal plants.
Currently Kengen is involved in the rehabilitation of Olkaria I and IV power plants with the exercise expected to generate an extra 40mw to the national grid.
According to Foreign Affairs Cabinet Secretary, Alfred Mutua, Kenya is keen on phasing out the expensive thermal power.
Speaking after visiting the geothermal rich area of Olkaria Naivasha, Mutua said that the government had engaged the German government which had agreed to fund the rehabilitation to the tune of 45 million euros.
Mutua who was flanked by senior Kengen managers said that currently, 92 percent of electricity produced in the country was green energy.
He said that the government iss keen to tap more power from geothermal, hydro, wind and solar so that green energy supply could hit 100 percent.
“Due to climate change, many countries which rely on hydro-power and gas are facing electricity challenges unlike Kenya where power rationing and blackouts are things of the past,” he said.
Mutua said that the Ukraine-Russia war was an eye-opener for many countries that relied on gas to power their homes and hence the shift to production of green hydrogen.
He said that due to the high potential of green energy and mainly from geothermal, Kenya could become a major exporter of electricity in the region.
“The government has already signed an agreement with an Australian company on the production of green hydrogen as we seek more investors in this field,” he said.
