Donation Amount. Min £2

Kenya has announced the launch of a geothermal risk underwriting facility, said to be the first of its kind in Africa, to underwrite up to KES260mn ($2mn) in early project development to attract and fast-track investment into domestic and regional green energy projects.

Kenya’s Insurance Regulatory Authority (IRA) said it is working in partnership with the country’s Ministry of Energy and Petroleum, State Department of Industrialisation and the East African Insurance Sector (ICEA Lion, Kenya Re, Old Mutual, GA and Mayfair) on the new facility.

Its development was supported by Financial Sector Deepening (FSD Africa), which is funded by UK aid from the UK government, with a mandate to transform financial markets across sub-Saharan Africa, in collaboration with partners Parhelion Underwriting and Kenbright.

To drill a geothermal well requires on average $5mn, with significant risk of missing geothermal resource after drilling. FSD Africa said the new de-risking facility, which will cover early-stage development drilling risks for investors in geothermal projects, “represents a critical step in creating a more favourable investment environment by mitigating the financial risks associated with these high-potential but high-risk projects”.

This underwriting facility marks a significant milestone in Africa’s sustainable energy goals and sets a precedent for future initiatives aimed at de-risking and supporting other high-impact sectors across the continent, FSD Africa said.

Alex Wachira, Kenya’s Principal Secretary, State Department of Energy, said that insurance cover for the risky upstream geothermal exploration work is a great enabler for the country to exploit its vast geothermal potential estimated at 10,000 MW.

“Our country is endowed with vast geothermal resources, and great progress has been made in tapping into this clean power. However, for us to fill the energy gaps, we need collaboration and investment between the public and private sectors,” he said.

Kenya is already a leader in geothermal electricity, with a total installed capacity of 988.7 MW contributing 47% of the power on the grid. This places the country at rank sixth globally and first in Africa in terms of geothermal power development. Kenya’s geothermal potential is estimated at 10,000 MW.

FSD Africa said its support of the geothermal underwriting facility is part of a wider geothermal energy programme that includes, among other things, technical capacity development and facilitation, advocacy and technical assistance, fundraising, and inclusive economic growth. Source: BNE Intellinews

About IEA Media Ltd

Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.

To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854.
If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.

We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.

Get in touch

Our Offices

London, UK
+44 7886 544135
editor (@) informereastafrica.com
Slough, UK
+44 7957 636854
info (@) informereastafrica.com

Latest News

Ruto issues tough warning to protesters attacking police

Ruto issues tough wa...

Police baricade Parliament Road using razor wire during Saba Saba protests on July 7, 2025.[Staffor...

 GCR Upgrades ShafDB’s Long and Short-Term Issuer Ratings, Maintains Stable Outlook

GCR Upgrades ShafDB’...

IEA News Global Credit Ratings (GCR), has affirmed and upgraded Shelter Afrique Development Bank’s (...

Human rights activists accuse police of intimidation over protests

Human rights activis...

Muhuri director Khalef Khalifa says they are moving to court to challenge the police for stopping l...

Blencowe funding milestone payment set the scene for further material progress in Uganda

Blencowe funding mil...

Blencowe Resources PLC (LSE:BRES) has received a further $750,000 in grant funding from the United S...

For Advertisement

Big Reach

Informer East Africa is one platform for all people. It is a platform where you find so many professionals under one umbrella serving the African communities together.

Very Flexible

We exist to inform you, hear from you and connect you with what is happening around you. We do this professionally and timely as we endeavour to capture all that you should never miss. Informer East Africa is simply news for right now and the future.

Quality News

We only bring to you news that is verified, checked and follows strict journalistic guidelines and standards. We believe in 1. Objective coverage, 2. Impartiality and 3. Fair play.

Banner & Video Ads

A banner & video advertisement from our sponsors will show up every once in a while. It keeps us and our writers coffee replenished.