€55 Million EU-Germany Deal Powers Kenya’s Green Energy Future » Capital News

NAIROBI, August 21, 2025 — The government renewable energy ambitions received a significant boost after Team Europe signed two key financing agreements worth €55 million under the EU’s Global Gateway strategy, reinforcing its commitment to Kenya’s green transition and infrastructure development.

Central to the deal is the redevelopment of the Gogo Hydropower Plant in Migori County, with a €35 million sovereign loan from Germany via KfW. The project will boost the plant’s generation capacity from 2 MW to 8.6 MW, stabilising power supply in western Kenya and significantly reducing outages. The plant, operated by KenGen, is expected to play a key role in advancing Kenya’s goal of achieving 100% renewable energy by 2035.

In addition, a €20 million grant funded by the EU and managed by KfW will support four renewable energy initiatives under the EU’s flagship Green Resilient Electricity System (GRES) programme. These funds will provide investment grants and technical assistance—including further support for the Gogo redevelopment—while also promoting inclusive community benefits, such as improved infrastructure and opportunities for women in energy-related fields

The agreements were signed in Nairobi during a meeting of high-ranking officials including Kenya’s Cabinet Secretary for the National Treasury and Economic Planning,. John Mbadi, EU Ambassador Henriette Geiger, German Ambassador Sebastian Groth, and KfW Kenya Office Director Kristina Laarmann.

EU Ambassador Henriette Geiger hailed the deal as a landmark in EU-Kenya cooperation:
“Today’s signing is a milestone in Team Europe’s support for Kenya’s energy transition. The Gogo Hydropower Plant represents more than generating clean energy; it is about resilience, inclusivity, and strengthening Kenya’s green leadership in the region.”

German Ambassador Sebastian Groth emphasized the broader scope of bilateral cooperation:
“This significant project is part of a €400 million German-Kenyan energy partnership. With Gogo’s redevelopment, we are proud to support Kenya’s climate goals and deepen our longstanding energy cooperation.”

The GRES programme, a cornerstone of the EU’s Global Gateway in Kenya, blends EU grants with concessional finance from European development partners to accelerate investment in clean, reliable energy infrastructure.