Kenyan renewable first reveals appetite for African risk

Author: Gemma Varriale | Published: 3 Feb 2014
  • The Kinangop wind farm is a rare example of a renewable deal in sub-Saharan Africa to be majority financed with commercial bank debt;
  • Historically, only a limited group of developers had the appetite for African sovereign risk. But the largest investor in the Kinangop project is the African Infrastructure Investment Fund II;
  • The finance structure is a 10-year loan with a 15-year amortisation schedule;
  • Kenya’s electricity demand has increased by an average of seven percent per annum over the last six years.

The Kinangop wind farm in Kenya is a rare example of a renewable project in sub-Saharan Africa to complete without significant development finance institute or multilateral risk support.

The $150 million project involves building a 60 megawatt plant at Kinangop to the north of Nairobi. It’s one of the biggest developments...