| Approval Date | 13 Sep 2021 |
| Signature Date | 12 Nov 2021 |
| Planned Completion Date | 31 Dec 2023 |
| Last Disbursement Planned Date | 31 Dec 2024 |
| Sovereign / Non-Sovereign | Sovereign |
| Sector | Power |
| DAC Sector Code | 23220 |
| Environmental Category | 1 |
| Commitment | U.A 759,895.74 |
| Status | Implementation |
Energy use in the public sector represents a major cost to the Government of Kenya (GoK) and competes with other economic and social development programs for the GoK’s limited resources. According to Kenya Power and Lighting Company PLC (KPLC), there are over 20 000 public buildings - including institutional facilities, with an estimated annual energy consumption of 700 GWh (representing about 10% of the country’s total annual energy consumption). The associated energy costs are approximately USD 120 million per annum. KPLC has initiated several projects aimed at ensuring efficient use of energy through its Demand Side Management (DSM) Unit. Also, KPLC has the Institute of Energy Studies and Research (IESR) which is an innovation, research and technology centered training institute that provides high quality training for KPLC inservice staff, corporates, and the general public. The IESR training portfolio include courses related to energy efficiency and management. The IESR is mandated to persue alternative revenue streams or diversification for KPLC.
The development outcomes of the proposed TA are to support the development of Kenya’sEnergy Efficiency market through enhancing EE in public buildings, development of private ESCOs and mobilization of funds for EE development in the country. The TA will contributeto: (i) a 25% reduction in energy consumption, about 175 GWh /year, equivalent to areduction of 56000 tCO2/year, by 2025, (ii) creation of approximately 1850 jobs, of which 30% for women; (iii) Creation of new companies offering EnPCservices and consequently a sustainable EE market (iv) increase adoption of efficient technologies and high-performance equipment and (v) boost interest of private sector, local financial institutions (FIs)to invest in EE projects and the creation of flexible financing mechanisms while the ESCO market is developing. The creation of an initial EE market in the public sector will naturally migrate to the commercial and industrial sectors where the impact for energy savings, jobs creation and sustainability will be crucial as Kenya’s economy grows.
KPLC is the national utility in Kenya. A public company in which the GoK has a controlling stake of 50.1% while other investors hold 49.9%. The Company is listed on the Nairobi Securities Exchange. In addition to its core function, KPLC carry out EE related activities which include public awareness on energy efficiency and conservation, energy advisory services to customers (energy audits), implementation of energy efficiency programs on behalf of the government, collaboration with the sector players on matters related to energy efficiency and conservation, which include standards development and licensing of energy auditors.
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Implementing
Kenya Power and Lighting Company (KPLC)
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Funding
Sustainable Energy Fund for Africa
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| IATI identifier | 46002-P-KE-FZ0-020 |
| Last Update | 24 Mar 2023 |
| Name | Kevo Luc TOSSOU |
| k.tossou@afdb.org |