PPP will save Kenyans from Loans and Tax Burden - President Ruto

Nakuru, 

Thursday, 24 October, 2024 

McCreadie Andias 

President William Ruto has defended the government’s policy on Public Private Partnerships to finance the national development agenda.

Speaking during the groundbreaking ceremony for the 35MW Orpower 22 Geothermal Power Plant at Menengai, Nakuru County. Ruto said PPPs are opted to save the country on it's overeliance on Debt and ameliorate the tax burden on Kenyans. 

According to Ruto, PPPs have helped the government implement infrastructure development projects including building of the Standard Guage Railway. 

“It is important to appreciate that the partnership between the public and the private sector gives us a win-win outcome to deliver public services using the efficiency and investment of the private sector,” he said.

This comes as the government has the government has signed Ksh.12 Billion partnership agreement with the Kaishan group limited, a Chinese energy group, to construct 22, 35MW geothermal power plant in Menengai steam fields through PPP. 

The 105MW Menengai steam fields have three power plants;the already constructed Sosian producing 35MW, Globeleq 35MW under construction, and now Orpower Twenty-Two 35MW. 

The investment will eventually supply the grid with clean, stable, reliable and affordable energy.

President Ruto also witnessed the signing of an MoU between Kenya Electricity Generating Company (KenGen) and Kaishan Group for sustainable green ammonia collaboration.

Consequently, Kenya will manufacture ammonia fertiliser in 24 months for the first time in the country.

“Progressively, we will reduce fertiliser imports into Kenya,” he said.

The President said the government is working with the private sector to harness Kenya’s geothermal potential. He explained that this will enhance the realisation of the country’s goal of achieving 100 per cent clean energy grid by 2030.

President Ruto announced that the 105MW Menengai project will elevate Kenya’s global ranking in geothermal production to 5th overall, proving that economic growth and clean energy development can go hand in hand.

The Orpower Twenty-Two plant is the third facility within the Menengai 105MW complex.

“The commencement of the 35MW power plant project by Orpower Twenty-Two highlights our commitment to unlock Kenya’s vast geothermal potential to drive economic growth,” he said

Ruto said such investments demonstrates the confidence foreign investors have in the country.

He called on private investors to fully explore geothermal energy to unlock the country’s potential.

The President noted that only 10 per cent of the country’s geothermal energy has been explored.

“So far, we have tapped only 950MW, a small fraction of our geothermal potential of nearly 10,000MW, leaving immense opportunities still untapped,” he said.

The President reaffirmed the government’s commitment to enhance economic efficiency and industrial competitiveness by lowering electricity costs.

“Our strategy to provide universal access to clean, affordable and reliable energy is clearly on course, and geothermal power remains central to these efforts,” he said.

The President said geothermal energy will decarbonise the national grid and drive the country’s progress towards net-zero.

“As a global leader in this space, Kenya continues to demonstrate how every nation can achieve sustained, rapid and transformative growth, while remaining true to climate action commitments,” he said.

The Government has also recently entered PPPs with the Adani Group Holdings, an Indian company, to invest more than Ksh. 90 Billion in Ketraco.

A KSh. 238 billion lease agreement is currently being processed between the Government and Adani, to upgrade and maintain JKIA into a world class Airport for a period of 30 years.

The deal has however been halted by courts over controversy on it's transparency and public outcry.