Kenya’s renewable energy sector has received a major boost after the National Treasury signed two funding agreements worth sh8 billion with Germany and the European Union.

The support is targeted at expanding clean energy generation and strengthening electricity reliability in Western and Nyanza regions.

Treasury confirmed on Tuesday, August 19, 2025, that Cabinet Secretary John Mbadi formalised the deals on behalf of the government alongside senior European officials. Germany, through its development bank KfW, committed €35 million (sh5.28 billion), while the EU pledged €17.94 million (sh2.7 billion).

The funding will go into the redevelopment of the Gogo Hydropower Plant and the Green Resilient Electricity System Project (GRESP).

According to Treasury, these initiatives will help reduce power losses, improve reliability, enhance energy security, and support industrial growth, while accelerating Kenya’s shift to renewable energy.

Under the agreement, the Gogo Hydropower Plant will be modernised to raise its capacity from 2 megawatts to 8.6 megawatts.

The project will be executed by the Ministry of Energy and Petroleum through KenGen, with the aim of providing more efficient and stable electricity supply for households and industries across the region.

The signing ceremony was attended by Kristina Laarmann, Director of KfW Nairobi; Sebastian Groth, German Ambassador to Kenya; Henriette Geiger, EU Ambassador to Kenya; and Maren Kneller, Head of German Cooperation. Energy Principal Secretary Dr. Chris Kiptoo also took part in the event.

Treasury stated that the financial support will not only upgrade infrastructure but also align with Kenya’s renewable energy goals, reduce dependence on fossil fuels, and promote sustainable growth.

By working with international partners, Kenya aims to expand access to affordable and green electricity while addressing the challenges of climate change.

The projects are part of Kenya’s broader long-term energy strategy focused on increasing renewable power generation, boosting efficiency, and ensuring more communities gain access to reliable electricity.