Report

Bankability Part 2: Bankable on Whose Terms

This report examines who finances Kenya’s power projects, and on what terms. Kenyan Power projects can raise finance, but mostly from foreign lenders. Development banks lent to all seven major projects reviewed; no Kenyan bank was named as a main lender. Long-term money exists in Kenya, but much of it is lent to the government, at about 14% a year for 30 years.

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10/9/2026
Report
Bankability Part 2: Bankable on Whose Terms
The sector’s finances have improved. Peak demand has risen 30% in six years, Kenya Power is financially stronger, and Kenya’s credit rating has been raised. Legal uncertainty has increased. In September 2026 the High Court ruled that government guarantees and similar support for public-private partnerships need Parliament’s approval, and gave Parliament until March 2027 to change the law. The report recommends a dedicated payment fund for power producers, contracts paid partly in Kenyan shillings, a transitional charge on large users who leave Kenya Power, and a fast approval process in Parliament.

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    Bankability Part 2: Bankable on Whose Terms