The Kenya Tea Development Agency will receive close to KES3 billion from two Multi lateral organizations that will go towards footing part of the KES8.9 billion budget it requires to set up seven hydro– power plants. The two multi-lateral organizations, The International Finance Corporation and the Global Agriculture Food Security Programme will offer the loan to the organization for its energy plan that seeks to generate 16 megawatts.

The Kenya Tea Development Agency will receive close to KES3 billion from two Multi lateral organizations that will go towards footing part of the KES8.9 billion budget it requires to set up seven hydro– power plants. The two multi-lateral organizations, The International Finance Corporation and the Global Agriculture Food Security Programme will offer the loan to the organization for its energy plan that seeks to generate 16 megawatts.

The funding will go towards the renewable power project and construction of transmission lines in various parts of the country. The seven small hydropower plants will have an installed capacity ranging from 1.1MW to 6.5MW.“We want to have a sustainable energy mix that will ensure our factories operate at the lowest energy cost.” said KTDA power general manager Lucas Gakori.

The seven small hydro-power plants   which are set to be located in Meru, Kericho, Kirinyanga and Kisii will generate power to the various factories. The project is set to save on the power costs incurred by the organization when completed. Mr Gakori added, “We want to have a sustainable energy mix that will ensure our factories operate at the lowest possible energy cost.”  The projects will also be a major reprieve on the operation costs.

The projects which will be managed by KTDA Power, is currently developing a portfolio of small, run of the river SHPS with an aggregate generation capacity of up to 29MW across 10 sites in various locations in Kenya. Energy costs account for close to 30 per cent operation costs in tea factories with electricity alone accounting for 17 per cent. On average, individual factories spend between KES30 million to 65 million annually on electricity.

Leave a Reply