The Kenyan government is exploring blended financing options to raise Ksh130 billion for green hydrogen investments, aiming to boost fertilizer and ethanol production while decarbonizing the transport sector.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced that Kenya plans to leverage green hydrogen development to enhance agricultural productivity and reduce carbon emissions in road transport.
The East African region is estimated to require a combined Ksh1.2 trillion to develop and operationalize green hydrogen plants.
Green hydrogen is produced sustainably using renewable energy, resulting in significantly lower greenhouse gas emissions compared to grey hydrogen, which is derived from fossil fuels. The shift to green hydrogen aligns with global efforts to combat climate change.
Regional Collaboration and Funding
Energy leaders from the East African Community (EAC) are advocating for joint efforts to finance green hydrogen projects. Wandayi emphasized the need for regional cooperation and private equity investments to meet funding requirements over the next five years.
In a major boost, the German government has pledged Ksh 17 billion in concessional financing and grants to support a 100-megawatt green hydrogen plant in Kenya.
Additionally, Kenya is among four African nations competing for Ksh 40 billion in grants to further develop green hydrogen markets.
This initiative positions Kenya as a regional leader in clean energy innovation, with the potential to transform agriculture, industry, and transportation while advancing climate goals.
