Funding slows Kenyan promise on rural electricity, geothermal development

In Kenya, the government says it will miss its goal of boosting connections to the national grid in rural areas to 20% by the end of 2010 due to delays and lack of funds. East Africa’s biggest economy set out in 2004 to raise the coverage rate gradually from 4% at that time all the way to 40% by 2020. Energy Minister Kiraitu Murungi said the plan needed at least $4.9 billion to be accelerated and that of that amount, $753 million will be spent on assessing the nation’s geothermal resources, which are estimated at 7,000 MW. The country has reforms in the power sector in place to encourage investments, including the formation of a dedicated geothermal development company and a second power transmission firm.