Kenya has joined the league of Africa oil exporters after its first consignment of 200,000 barrels fetched $12 million on Thursday afternoon. That means the sweet light crude sold at $60 per barrel, an uptick of nearly 40 per cent above the $43 per barrel that the government had set as the break-even point for the Early Oil Pilot Scheme. President Uhuru Kenyatta announced the breakthrough on twitter with a concise message: "We are now an oil exporter."
He expressed confidence that the oil trade would help grow the economy and end poverty. “So, I think we have started the journey and it is up to us to ensure that those resources are put to the best use to make our country both prosperous and to ensure we eliminate poverty,” said President Kenyatta. The oil production statistics were disclosed by London-based Tullow Oil, which has exploration and oilfields in Turkana.
Kenya has launched Africa's largest wind power farm in a bid to boost electricity generating capacity and to meet the country's ambitious goal of 100% green energy by 2020.
Globeleq, a power sector leader in Africa, has reached financial close of the 40 MWAC (52 MW p) Malindi Solar photovoltaic (PV) project in Malindi, Kenya and is commencing construction of the plant. The US$69 million project is located in Langobaya, Malindi District, Kilifi County, about 120 kms north-east of Mombasa and is one of the first IPP owned utility scale solar power plants in Kenya to begin construction. Electricity will be sold through a 20-year agreement with the national distribution company, Kenya Power.
Globeleq has been working with the project originator, Africa Energy Development Corporation (AEDC), who will retain 10% ownership of the project, and its partner, IDEA Power, to bring the project to construction by providing equity, project development and construction management experience. CDC, the UK’s development finance institution, as the mandated lead arranger, has sourced US$52 million in debt financing including $20 million from DEG, the German development finance institution.
East Africa is well known for a stunning natural landscape and spectacular tourist safaris that traverse a menagerie of exotic wildlife. It’s less well known for its industrial and commercial outputs. In fact, the burgeoning industrial and commercial sectors of many East African nations are hamstrung by a variety of impediments to economic growth, including the lack of affordable, reliable electricity service.
Historically, energy consumption and economic growth increase in lockstep, in what recent analyses show are a virtuous cycle: increased and intensified use of energy in production leads to economic growth, which in turn increases demand—and ability to pay—for more energy. Over the next four years, RTI International will partner with Power Africa in East Africa to catalyze reforms in the entire energy sector of Kenya, Tanzania, Ethiopia, and Rwanda. We will also be engaging in Uganda, Somaliland, Eritrea, Djibouti, Burundi, and eastern parts of the Democratic Republic of Congo. In each of these countries, our work continues the impressive work begun under the ambitious Power Africa Transactions and Reform Program (PATRP).