The 60.8 MW project is expected to come on line in the middle of 2015 and it will provide enough power to meet the needs of 150,000 local homes.
The project will be financed through a combination of debt and equity. Standard Bank Group will act as lead arranger and underwrite $90m of the debt while Norway’s Norfund will provide $60m in equity.
Standard Bank Group’s East Africa debt solutions and infrastructure finance head Kwame Parker said with the rising demand for electricity in Kenya, this project will go a long way in providing cost-effective power to the economy.
"It will not only contribute to the social and economic development of Kenya, but will also significantly help ease the energy supply deficit that the country is grappling with," Parker added.
"It provides a perfect opportunity for Kenya to increase the production of clean energy and reduce heavy reliance on other sources of power."
Power generated by the project will be sold to the Kenyan government.
