The Kenyan government has invested some Sh1.4 billion (€15 million) on geothermal generation in the Rift Valley in a bid to raise its contribution above the current 1% and reduce its heavy reliance on hydro resources.
Plans to establish a separate company to develop geothermal energy are being mooted in the country, which has apparently received a Sh3.1 billion (€33 million) commitment from the World Bank and a Sh700 million (€7.5 million) grant from the German government through the KfW for drilling wells for Olkaria IV station.
Some Sh470 million (€5 million) is being mainly spent on the appraisal of wells while another Sh25 million (€266,000) has been earmarked for surface exploration around Lake Bogoria, Baringo and Menengai areas.
With a potential of 2 GW in the Rift Valley alone, geothermal energy is expected increase to 3.9% of total capacity by 2019 if the least cost energy generation programme is fully implemented.