The UK government has signed a Memorandum of Understanding (MoU) with the Kenyan counterpart to strengthen cooperation in the renewable energy sector.
The MoU aims to promote UK’s private sector trade and investment opportunities in the Kenyan renewable energy.
As part of the deal, UK’s export credit agency UK Export Finance (UKEF) will seek requests for export financing or insurance for eligible renewable energy projects in Kenya. This will draw on a risk appetite of up to at least £250m.
British High Commissioner to Kenya Nic Hailey said: "The UK and Kenya are leaders in renewable energy, clean technology and innovation.
"Kenya has one of the most active renewable energy sectors in Africa, and the UK is a global leader in many of the sectors for which Kenya has greatest demand."
Under the terms of the MoU, UK will leverage its expertise, development and export credit financing to bring clean, renewable energy to Kenya while contributing to its development and economic growth.
Hailey added: "UK firms are excited about the opportunities in Kenya and I’m confident this new MoU will lead to significant increases in UK investment in Kenya’s renewable energy".
Kenya aims to increase its installed power generation capacity to 19,200MW by 2030 to meet its electricity demand.
Currently, about $25m has already been invested by the UK-supported Africa Enterprise Challenge Fund in 32 private sector companies to reduce carbon emissions.