UK and Kenya sign MoU that will increase opportunities for investment in the Kenyan renewable energy sector
A Memorandum of Understanding (MoU) to deepen cooperation between the UK and Kenya governments on renewable energy was signed today. The document was signed on behalf of the respective Governments by British High Commissioner Nic Hailey and Cabinet Secretary of Treasury Hon. Henry Rotich.
The MoU will promote opportunities for private sector trade and investment by the UK in Kenya’s renewable energy sector. As part of the MoU, UK Export Finance (UKEF) has also affirmed its interest in considering requests for export financing or insurance for eligible renewable energy projects in Kenya, drawing on a risk appetite of up to at least £250m (approx. Ksh 36b).
Speaking following the signature at Treasury, the British High Commissioner to Kenya, Nic Hailey said:
“The UK and Kenya are leaders in renewable energy, clean technology and innovation. Kenya has one of the most active renewable energy sectors in Africa, and the UK is a global leader in many of the sectors for which Kenya has greatest demand.
This MoU brings UK expertise, development and export credit financing together with the aim of bringing clean, renewable energy to the Kenyan people and accelerating Kenya’s development and economic growth. UK firms are excited about the opportunities in Kenya and I’m confident this new MoU will lead to significant increases in UK investment in Kenya’s renewable energy”.
Notes to Editors
The UK is committed to growing the renewable energy sector, domestically and around the world. The UK- supported Africa Enterprise Challenge Fund is already investing $25m in 32 private sector companies to deliver low carbon growth. The fund is being supplemented by US$ 20 million (Ksh 1.65 billion) to help private sector businesses in clean energy, agriculture and water management in the Arid and Semi-Arid Lands (ASALs).
UK Export Finance is the UK’s export credit agency. It exists to ensure that no viable UK export should fail for want of finance or insurance by complementing the private market with insurance for exporters, loan guarantees to banks, and support for and provision of loans to overseas buyers of UK goods and services. Sectors in which UKEF has supported exports include: aerospace, construction, oil and gas, mining and metals, petrochemicals, telecommunications, and transport. More information on UKEF can be found on: https://www.gov.uk/government/organisations/uk-export-finance
In April 2016, UKEF joined African Trade Insurance (ATI), the pan-African export credit agency. This move comes as the UK government looks to encourage more UK businesses to trade with African countries. As an ATI member, UKEF will gain access to information about upcoming opportunities for exporters, as well as local knowledge of firms and projects. ATI will also provide a platform to raise awareness among project sponsors and buyers in African countries of the UKEF support available to importers of UK goods and services.