Mbadi signs Ksh8B renewable energy agreements with Germany and EU
By Cy Muganda, August 19, 2025The National Treasury has announced the signing of two major agreements aimed at strengthening Kenya’s renewable energy sector, following commitments worth Ksh8 billion from the Government of Germany and the European Union.
In a statement issued on its X account on Tuesday, August 19, 2025, Treasury confirmed that Cabinet Secretary John Mbadi signed the deals on behalf of the Government of Kenya alongside key European partners.
“CS Hon FCPA John Mbadi today signed two agreements on behalf of the Government of Kenya to advance the country’s renewable energy agenda,” the statement read.
Funding commitments
According to the Treasury, the Government of Germany, through its development bank KfW, pledged €35 million (Ksh5.28 billion), while the European Union committed €17.94 million (Ksh2.7 billion).
The funds, they said, will finance the redevelopment of the Gogo Hydropower Plant and the Green Resilient Electricity System Project (GRESP).
“The Government of Germany, through KfW, and the European Union have committed €35 million and €17.94 million respectively to fund the redevelopment of the Gogo Hydropower Plant and the Green Resilient Electricity System Project (GRESP),” the statement adds.
Boosting energy supply
The Treasury outlined the expected impact of the initiatives, stating that it will significantly improve electricity supply in Western and Nyanza regions while strengthening Kenya’s overall energy security.
“The initiatives will enhance electricity supply in the Western and Nyanza regions by reducing grid losses, improving reliability, alleviating load shedding, supporting industrial growth, and strengthening Kenya’s energy security,” Treasury stated.
Additionally, Treasury announced that the Gogo Hydropower Plant, which will be upgraded under the agreement, is set to increase its generation capacity from the current 2 megawatts to 8.6 megawatts.
“To be implemented by the Ministry of Energy and Petroleum through KenGen, the Gogo Hydropower Plant upgrade will expand generation capacity from 2 MW to 8.6 MW, boosting efficiency and accelerating Kenya’s transition to renewable energy,” the statement continued.
The agreements were signed in the presence of Ms. Kristina Laarmann, Director of KfW Nairobi; H.E. Sebastian Groth, German Ambassador to Kenya; H.E. Henriette Geiger, EU Ambassador to Kenya; and Ms. Maren Kneller, Head of German Cooperation.
Energy Principal Secretary Dr Chris Kiptoo also attended the event.