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Policy to ease tax, loan burdens on Kenyans – Ruto

President Ruto has defended the government’s use of Public-Private Partnerships (PPPs) to support the national development agenda.

The head of state explained that these partnerships help avoid adding taxes or taking out more loans to fund projects.

He highlighted the success of PPPs in delivering major projects, including the Standard Gauge Railway.

“Public-private partnerships create a win-win outcome by combining government efforts with the efficiency and investment power of the private sector,” he said.

The President made these remarks at the groundbreaking ceremony for the 35MW Orpower 22 Geothermal Power Plant in Menengai, Nakuru County. He noted that the KSh12 billion investment by Kaishan Group shows the confidence foreign investors have in Kenya.

During the event, President Ruto also witnessed the signing of an MoU between Kenya Electricity Generating Company (KenGen) and Kaishan Group for sustainable green ammonia production. This collaboration aims to establish Kenya’s first ammonia fertilizer manufacturing facility within 24 months, reducing the need for imports.

“Step by step, we are decreasing Kenya’s reliance on imported fertilizers,” he said.

The President emphasized the government’s collaboration with the private sector to tap into Kenya’s geothermal energy, a key component of the country’s goal to achieve a 100 percent clean energy grid by 2030. He noted that the new 105MW Menengai project will elevate Kenya’s global ranking in geothermal production, positioning it fifth worldwide and demonstrating the compatibility of economic growth and clean energy.

The Orpower 22 plant is the third facility in the Menengai 105MW geothermal complex.

“This 35MW project by Orpower 22 underscores our dedication to unlocking Kenya’s geothermal potential as a driver of economic growth,” he added.

President Ruto urged private investors to further explore geothermal energy, noting that only 10 percent of Kenya’s estimated 10,000MW geothermal potential has been harnessed so far, with 950MW currently in use.

He reiterated the government’s commitment to boosting economic efficiency and industrial competitiveness by reducing electricity costs. “Our plan to provide universal access to clean, affordable, and reliable energy is on track, with geothermal power playing a central role,” he said.

Geothermal energy, according to the President, is essential to decarbonizing Kenya’s national grid and moving toward net-zero emissions. “As a global leader in geothermal energy, Kenya exemplifies how countries can achieve transformative growth while honoring climate commitments,” he added.

Energy Cabinet Secretary Opiyo Wandayi expressed optimism about the new power plant’s potential to attract more clean energy investments, while Nakuru Governor Susan Kihika emphasized the county’s commitment to fostering a business-friendly environment for private investors.

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