Finnfund supports Kenyan geothermal project

Finnfund is among the investors backing a geothermal project in Kenya’s Nakuru County.

Globeleq, a private power company in Africa, has secured $72 million in debt funding from the African Development Bank (AfDB), Finnfund and the Eastern and Southern African Trade & Development Bank (TDB) for the 35 MW Menengai project. Globeleq, which is 70% owned by British International Investment and 30% by Norfund, will provide equity and project development and construction management expertise.

The project will be part of the first phase of the wider Menengai complex and is expected to begin construction in Q1 2023, once financial close has been reached. Globeleq will operate and maintain the power plant once it becomes operational in 2025.

Steam will be supplied to the project by Geothermal Development Company, a Kenyan government-owned firm, under a 25-year project implementation and steam supply agreement. The project will sell electricity to national distribution company Kenya Power under a power purchase agreement for the same period.