Home Business Govt Secures Ksh8.3B Loan with International Lenders

Govt Secures Ksh8.3B Loan with International Lenders

Kenya Bags Ksh8.3B Loan Deal
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  • Kenya signs Ksh8.3 billion financing deal to redevelop Gogo Hydro Plant in Migori.
  • The upgrade will double output from 40MW to nearly 80MW.
  • Project aims to stabilise supply in Migori, Homa Bay, Kisii and neighbouring counties.
  • Government says upgrade aligns with Kenya’s 100% renewable energy plan by 2030.
  • Watchdogs warn of debt risks and demand transparency in execution.

The government has sealed a Ksh8.3 billion loan with international lenders to upgrade the ageing Gogo Hydro Power Plant in Migori County. The funding will modernise systems, expand installed capacity, and extend power distribution across the western region.

According to the Treasury, the loan is concessional with low-interest terms, and repayment will be cushioned by the increased electricity generation over the next 20 years.

The Ministry of Energy says Kenya Electricity Generating Company (KenGen) will oversee the rehabilitation, which will raise Gogo’s output from 40 megawatts to nearly 80 megawatts.

Officials argue this will provide a more stable electricity supply in Migori, Homa Bay, Kisii and surrounding counties, reducing reliance on imports from Kisumu and the national grid.

The government believes the improved plant will spur agricultural and mining value chains that have long been constrained by poor electricity access. Hundreds of jobs are also expected during construction and operation, while trade and industrial activity in western Kenya will receive a major boost.

“This project supports our plan to transition to 100% renewable energy by 2030 while promoting equitable regional growth,” said an Energy Ministry official.

Despite the promise, energy sector watchdogs have cautioned the government to guard against rising debt and possible cost overruns.

“Transparency and timely completion are key. Previous upgrades in the sector have faced delays that pushed costs higher,” noted one analyst.

The Gogo rehabilitation reflects Nairobi’s determination to strengthen self-sufficiency in underserved regions, as part of its wider agenda for equitable national development.