- The Insurance Regulatory Authority (IRA) of Kenya, in partnership with other agencies, has announced a geothermal risk underwriting facility in Kenya.
- Wachira emphasised that collaborations are key to harnessing and exploiting geothermal power to its maximum potential.
The Insurance Regulatory Authority of Kenya (IRA), in partnership with the Ministry of Energy and Petroleum, the State Department of Industrialisation, and the East African Insurance Sector, has announced a geothermal risk underwriting facility in Kenya, a pioneering initiative in the whole continent.
The product is expected to fast-track and attract greater investments in green energy projects in Kenya and the region by lessening the financial risk associated with geothermal projects.
The facility will underwrite up to KSh260 million in the early exploration stages. Financial Sector Deepening (FSD Africa) has supported its development in collaboration with Parhelion Underwriting and Kenbright, who are huge partners in the joint initiative.
Principal Secretary, State Department of Energy Alex Wachira, noted that insurance cover for the risky geothermal exploration work is a great enabler for the country to exploit the geothermal power potential estimated at 10,000 MW.
According to Wachira, geothermal energy’s huge potential makes it an energy source and a driver of economic growth and sustainable development.
He added that Kenya has vast geothermal resources, and great progress has been made in tapping into this clean power. “However, to fill the energy gaps, we need collaboration and investment between the public and private sectors,” the PS reiterated in a speech by a department representative on his behalf.
Wachira emphasised that collaborations are key to harnessing and exploiting geothermal power to its maximum potential.
Speaking on the announcement, IRA Commissioner of Insurance Godfrey Kiptum lauded the facility as one that will deepen Kenya’s green energy credentials by spurring investments in the geothermal subsector, a form of energy in which the region holds great potential.
“The insurance sector plays a critical role in the social-economic development of any nation. I am proud that the insurance sector has kept innovation alive with products such as the geothermal risk underwriting facility,” he expressed.
Energy in Kenya is vital to the daily activities undertaken in homes; travel to work, in offices, shops, hospitals, schools, libraries and industry. The energy sector in Kenya is largely dominated by petroleum and electricity, with wood fuel providing the basic energy needs of the rural communities, urban poor, and the informal sector. The need for Clean Energy is on high demand in Kenya.
In support of Clean Energy and to work toward reduce greenhouse emissions to Climate Change, we hereby apply for Partnership and Support to Rollout the First Renewable Natural Gas in Kenya.