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Japan Government assists Kenya’s Energy Sector

Kenya has signed an agreement on Exchange of Notes and Grant aid with Japan to Improve Power Distribution Systems in and around Nakuru and Mombasa Counties.

The grant amounting to Sh 1.9 billion will involve installation of additional 109 transformers and extension of the existing Power Distribution system in the two cities.

The project will not only improve power distribution system in the two cities but is aimed at making the system more efficient and reduce power losses.

Speaking during the signing of the agreement at his office, National Treasury and Planning Cabinet Secretary Amb. Ukur Yatani said that a second grant for Human Resource Development Scholarships programme amounting to Sh 243.5 million will also offer scholarships to Government Officers to study in Japan and acquire various skills which will enhance the service delivery to the country.

“We appreciate the Government of Japan since through similar grants, we have managed to offer scholarships to more than 140 officers in various fields in the public service,” he said.

The CS further added that within this month, the two governments cooperation has grown with the signing of various financing agreements with the most recent being the Heath Sector Loan Agreement for attainment of Universal Health Coverage (UHC) Phase II amounting to approximately Sh. 8.14 billion which will contribute greatly to the fight against Covid -19 pandemic, a major health challenge in the country.

Cumulatively, Amb. Yatani said that the government has so far received financial support amounting to Sh 481.34 billion to date and requested the Ambassador to Japan to have a policy dialogue soon to discuss future cooperation projects between the two states.

Ryoichi Horie, Japanese Ambassador to Kenya said Japan is committed and will continue to support Kenya’s electricity sector noting the support on geothermal power plants in Ol karia since the first project in 1981 which Japan has been involved in.

“Olkaria V geothermal power plant has been operational since last December and the Olkaria1-6 Geothermal power plant will also be completed within the next few years,” he said.

Ambassador Horie added that Japan has been contributing to Kenya’s power generation for many years now and that their objective is to enhance the supply of power and depreciate electricity prices through this project using Japan’s quality technology.

Kenya’s 45 percent of the total electricity supply comes from within approximately 85 percent of such being generated by Japanese turbines.

Transmission and distribution losses in the country are as high as2, 750 GW which means that about 25 percent of the total power generated is lost. 

By Wangari Ndirangu

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