Rhino env 01
Reforestation of Arberdares forest

AFD financed the reforestation of southern and western areas of Aberdares through the Green Belt Movement; an NGO founded in 1977 by Nobel Peace Prize winner, Wangari Maathai (2004).

Environment
Kipevu
Urban Development in Kisumu

AFD supports the City of Kisumu located on the shores of Lake Victoria in terms of access to water and sanitation (rehabilitation of the existing system), as well as developing basic services (Kisumu Urban Project).

Kisumu
Puits élect 01
Geothermal

AFD has supported the production of geothermal energy in Olkaria. This project has helped reduce significantly the price of electricity.

Energy
Terminal 1
Extension of the Jomo Kenyatta International Airport

AFD together with the World Bank has financed the expansion of the Jomo Kenyatta International Airport. The new Terminal 1 was commissioned in 2014 and has significantly increased the capacity of the airport in terms of number of passengers and also improved passenger's safety.

Nairobi Airport

News

Signing of Grant Agreement for Lake Victoria Water and Sanitation Project Kisumu (LVWATSAN) and Credit Agreement for the Kenya Informal Settlements Improvement Project (KISIP)

18/12/2015

The National Treasury signed on Thursday 17th December 2015 with the French Development Agency (AFD) two Financing Agreements: a Grant Agreement of 5 million EUR (550 million KES) for the Lake Victoria Water and Sanitation Project Kisumu (LVWATSAN) and a Credit Agreement of 45 million USD (4.6 billion KES) for the Kenya Informal Settlements Improvement Project (KISIP). The Agreements were signed by the Cabinet Secretary of the National Treasury Mr. Henry Rotich and the AFD Regional Director Mr. Yves Boudot. The French Ambassador, H.E Mr. Rémi Maréchaux also present at the ceremony, co-signed both Financing Agreements.

The signing ceremony was witnessed by representatives of the Ministry of Water, Lake Victoria South Water Services Board, Ministry of Land, Housing and Urban Development, and development partners participating in the financing of the 2 programs, notably the European Investment Bank (EIB) and European Union Delegation for the water project and the World Bank for the KISIP.

The Financing Agreements concern two sectors that have been flagged by the Government as central for the development and prosperity of the country: water and the urban development.
 
AFD will co-finance the KISIP alongside the World Bank (100M USD), SIDA (10M USD), and GoK (10M USD), bringing the overall project financing to 165 M USD (17.3 Billion KES). It is an informal settlements upgrading project targeting 15 urban areas, being implemented by the Ministry of Land, Housing and Urban Development. The objective of the project is to improve living conditions and strengthen security of tenure for residents in informal settlements. This project will see the improvement of roads, drainage and footpaths, water and sanitation infrastructure, as well as installing of floodlights. Securing tenure for residents will be achieved through the issuance of title deeds. The project is already underway with the financing of the World Bank, SIDA and GoK, thus the AFD financing will facilitate further expansion of planned activities.
 
The Lake Victoria Water and Sanitation project (LVWATSAN) Kisumu is part of a bigger regional project around Lake Victoria, involving Kampala in Uganda and Mwanza in Tanzania. The project on the Kenya side is being implemented by the Lake Victoria South Water Services Board and is
co-financed with European Investment Bank (EIB) – 35 M EUR, EU-Africa Infrastructure Trust Fund
(5 M EUR) and GoK (10M EUR), with AFD as the lead donor. The project has a significant sanitation component, with the objective of protecting Lake Victoria, an important national and regional water resource, which not only supplies water to the towns around the Lake, but also has great potential for the development of regional lake transport and tourism.
 
The LVWATSAN Kisumu will also finance the extension of water and sanitation distribution networks in Kisumu, including in informal settlements and extend water supply to the centres of Ahero, Darajambili and Maseno. The grant agreement signed on 17th December 2015 is financing from the EU –Africa Infrastructure Trust Fund and will finance technical assistance and preparatory studies for the LVWATSAN project, including master plans for water resources and sanitation, detailed design studies for the first phase of works and technical assistance for reducing Non-Revenue Water for the water utility KIWASCO.
 
It is expected that the Informal Settlements Project and the LVWATSAN project will be implemented respectively over 3 and 5 years.
 
AFD’s total commitments in Kenya across mainly the energy, water and sanitation, urban development and financial sectors currently stand at around 1 Billion EUR (110 Billion KES).
 


KPLC and AFD sign a 56 Million Euros (6 Billion Kenyan Shillings) Financing Agreement for the Implementation of Kenya Power's Distribution Masterplan

15/12/2015

Kenya Power Managing Director and Chief Executive Officer, Dr. Ben CHUMO, together with the Regional Director of AFD Nairobi Office, Mr. Yves BOUDOT, in the presence of the French Ambassador to Kenya, H.E. Mr. Rémi MARECHAUX,  signed on December 11th, 2015 in Nairobi a financing agreement for the provision by AFD of a 56 M€ loan to Kenya Power.

The funds made available to Kenya Power will partially support the implementation of the company’s Distribution Masterplan for 2012-2030. The investments will strengthen and expand the distribution network of the power utility in three major zones of economic activity in Kenya: Mombasa, Kisumu and Nairobi. 

Upon implementation, the Distribution Masterplan projects are expected to decrease the number of power shortage and to increase of the reliability of the network. This will allow Kenya Power to increase its income and will help the industrialists situated in regions covered by the project to better manage their costs (by limiting the need for private generators).
 
In addition, the projects will enable the company reduce technical losses through improved energy efficiency of around 10 GWh / year. This reduction of technical losses will further strengthen the financial performance of Kenya Power and will reduce greenhouse gas emissions by around 4,000 tons of CO2 eq./ year. At the same time, the Distribution Masterplan projects will increase the distribution network capacity and, consequently, will contribute to improve the living conditions of the population.
 
This financing is provided by Kenya Power at AFD own’s risks, without the guarantee of the Government of Kenya. It highlights the very good financial performance of Kenya Power and the confidence of AFD in this company and the overall Kenyan electricity sector. Kenya Power Managing Director indicated that “this financing is one of the first of its kind and is a clear indication that Kenya Power has come of age to directly access financial resources to invest in its network”. He noted that this was all the more important as it allowed Kenya Power to “improve the reliability and quality of electricity distribution, which is the primary role of Kenya Power.
 
This new project is part of a long term partnership between Kenya Power and AFD. Indeed, AFD has already made funds available to Kenya Power to set up the Stima Loan (microfinance facility of Kenya Power to cover customer contribution for connection to the electricity network) and to implement rural and urban electrification projects. The two institutions are about to launch a 33 million Euro (3,6 Billion Kenyan Shillings) project which objective is to improve existing mini-grids by adding wind and solar generation capacity.
 
Referring to the climate negotiations hosted in Paris (Cop21), the French Ambassador highlighted that “one of the critical topics of those international discussions is the financing of the fight against climate change. The signing of this financing agreement shows that significant resources are indeed made available to the States, parastatals and the private sector to support climate friendly projects. France is committed to provide such financial resources and has announced recently that it will increase by 2 billion euros [more than 220 billion Kenyan Shillings] a year its commitment to the fight against climate change in developing countries.
The French Ambassador also indicated that this financing was aligned with the “Joint Declaration on Sustainable Energy signed by Kenya at the Cop21 in Paris, to which France, EU, Italy, the Netherlands and the US are parties”.


Signing of a credit line of 10 M€ with Commercial Bank of Africa in favor of renewable energy and energy efficiency projects (SUNREF program) in Kenya

27/11/2015

On 23rd November 2015, AFD and Commercial Bank of Africa (CBA) signed, in the presence of the Ambassador of France Mr. Rémi Maréchaux, a financing agreement for a concessional credit line of an amount of 10 Million Euros, in order to finance small-scale investments projects in energy efficiency and renewable energy in Kenya.

SUNREF (Sustainable Use of Natural Resources and Energy Finance), the « green finance » label of AFD is an integrated approach in favor of environmental finance. This initiative aims at promoting investments in the energy and environmental services within developing countries, thanks to the combination of both financial and technical approaches.

A first phase of the SUNREF program was implemented in Kenya over these last three years, in partnership with the country’s second largest bank, Co-operative Bank of Kenya, and a business association of 750 Kenyan manufacturers, the « Kenya Association of Manufacturers » (KAM). This first phase has served to finance energy efficiency projects (in the textile and dairy industries) as well as renewable energy projects (biomass in the sugar sector, micro-hydro plants for tea processing, etc.) for a total investment cost of about 55 million US dollars.
 
Thus, as for the first phase, this phase 2 of the project will consist of i) a concessional credit  facility of 60 Million Euros at the disposal of five financial institutions to finance projects of renewable energy and energy efficiency responding to predetermined criteria of eligibility, and ii) a technical assistance program of 2.1 M€ (financed by the EU-Africa Infrastructure Trust Fund), already in execution to help maturing and developing the portfolio of projects, under the responsibility of KAM.
 
CBA is one of the fastest growing and among the seven largest banks in Kenya. The bank has been successfully implementing its diversification and regional expansion strategy over the last few years, now with business operations in Tanzania and Uganda. More recently, the bank reported that its innovative mobile-centric banking service, M-Shwari, had resulted in the acquisition of over 12,000,000 customers.
 
These incentives will contribute to ensure greater diversification of energy resources in Kenya and to facilitate the country’s transition towards sustainable energy solutions which are technically, economically and financially viable.
 
The SUNREF program is a regional program, its expansion to Tanzania and Uganda is in progress.


06/11/2015


SUNREF program: AFD signs with Chase Bank in favor of renewable energy and energy efficiency projects

06/11/2015

SUNREF (Sustainable Use of Natural Resources and Energy Finance), is an AFD initiative aiming at promoting investments in the energy and environmental services within developing countries, thanks to the combination of both financial and technical approaches. The partnership with Chase Bank joins in this framework and is translated by a concessional credit line of 10 million euros which can be extended to 30M€, to finance small-scale projects in Kenya.

Chase Bank, a bank working with SME’s

Chase Bank of Kenya is a medium size Tier 2 bank positioned as the 12th largest commercial bank in the country. With over thirty branches, Chase has reported a strong growth without altering the quality of its loan’s portfolio over the last few years. Its customer base mainly comprises with SME’s (65 % of assets). Its aggressive growth strategy focuses on the development of retail banking, opening of new branches and the development of new services (Islamic finance, microfinance, leasing, brokerage, etc.). In December 2013, PROPARCO (a subsidiary of AFD) granted a credit line of 40 MUSD in favour of Chase Bank to develop its activity in Kenya. These incentives will contribute to ensure greater diversification of energy resources in Kenya and to facilitate the country’s transition towards sustainable energy solutions which are technically, economically and financially viable.
 
Sunref, the « green finance » label of AFD
 
A first phase of the SUNREF program was implemented in Kenya over these last three years, in partnership with the country’s largest bank, Co-operative Bank of Kenya, and a business association of 750 Kenyan manufacturers, the « Kenya Association of Manufacturers » (KAM). This first phase has served to finance energy efficiency projects (in the textile and dairy industries) as well as renewable energy projects (biomass in the sugar sector, micro-hydro plants for tea processing, etc.) for a total investment cost of about 55 million US dollars.
 
Thus, as for the first phase, this phase 2 of the project will consist of:
·       a concessional credit facility of 60 Million Euros at the disposal of five financial institutions to finance projects of renewable energy and energy efficiency responding to predetermined criteria of eligibility;
·       a technical assistance program of 2.1 M€ (financed by the EU-Africa Infrastructure Trust Fund), already in execution to help maturing and developing the portfolio of projects, under the responsibility of KAM.
 
The SUNREF program is a regional program, its expansion to Tanzania and Uganda is in progress.
 
 
 
 
 
 


 
 
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