Completed Development AidData Chinese Aid

China Eximbank provides RMB 867.2 million government concessional loan for 54.66 MW Garissa Solar Power Plant Construction Project

¥867.3K RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	Aug 31, 2015
End Date	Nov 26, 2028
Duration	4,836 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`47008`

Grant Description

China Eximbank provides RMB 867.2 million government concessional loan for 54.66 MW Garissa Solar Power Plant Construction Project On August 31, 2015, China Eximbank and the Government of Kenya signed a government concessional loan (GCL) agreement [CHINA EXIMBANK GCL No. 2015 (10)] worth RMB 867,293,233.33 ($135,784,014) for the Garissa Solar Power Plant Construction Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

It was originally scheduled for repayment in 26, semi-annual installments between August 20, 2022 and September 21, 2035.

The loan was collateralized against the revenues (power purchase sales) of the project's end-user -- Kenya Rural Electrification Authority, which was later reconstituted as the Rural Electrification and Renewable Energy Corporation (REREC) -- and the borrower was expected to maintain a minimum cash balance in a non-interest-bearing escrow account (at Kenya Commercial Bank).

The account balance was $17,721,464.69 (KES 2,490,282,243) as of July 1, 2023 and $17,721,457.20 (KES 2,295,407,187) was of June 30, 2024.

The loan had achieved a disbursement rate of 93.47% ($126,922,733 out of $135,784,014) and there was an undrawn balance of $8,861,281 (worth 6.52% of the face value of the loan) as of June 30, 2021.

The borrower made principal repayments worth RMB 47,502,088.34 between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021) and no principal repayments between July 1, 2021 and June 30, 2022 (Fiscal Year 2021-2022).

The loan’s amount outstanding was RMB 818,856,345.01 as of June 30, 2020, RMB 866,358,433.35 as of June 30, 2021, and RMB 866,358,433.35 as of June 30, 2022.

The purpose of the $151,047,789.51 project was to construct a solar power plant that is located 20 kilometers north of Garissa, in Barki Village.

The power plant was originally planned to have a capacity of 50 MW, providing electricity for 350,000 people and 1000 employment opportunities for citizens in the area.

Jiangxi Corporation for International Economic and Technical Cooperation (CJIC) was the general contractor responsible for project implementation, but it undertook the project in collaboration with Kenya's Rural Electrification Authority (REA) and the Chinese solar company JinkoSolar. Project implementation commenced on September 29, 2016.

Kenyan President Uhuru Kenyatta officially launched the power plant on December 13, 2019. When solar panel prices went down, the capacity of the plant was increased from 50MW to 54.66MW.

Of the power produced by the plant, Garissa town consumes roughly 5MW and the rest is connected to the national grid, making it the biggest solar plant in East Africa. The plant sits on 85 acres and consists of 210,000 photovoltaic (PV) panels.

The power plant is now operated by Kenya's Rural Electrification Authority (REA) and it sells power to Kenya Power and Lighting Company (KPLC).

📋 Staff Comments

This project is also known as the Development of Solar Power Project in Garissa. The Chinese project title is 加里萨50MW光伏电站项目.
One source claims that the plant was commissioned as early as September 24, 2018. Another source also claims that the plant can service up to 625,000 homes.
The loan identification number in the National Treasury’s public debt register is 2015012 (or 2015012_1).
This record has been marked as having evidence of financial distress because it was subject to the Debt Service Sustainability Initiative (DSSI).
There are some grounds to question whether the first loan repayment date (and implied 10.25-year grace period) that is identified in the National Treasury’s external public debt register is correct. A 2024 report from the Auditor General's Office (https://www.oagkenya.go.ke/wp-content/uploads/2025/02/National-Government-MinistriesDepartments-And-Agencies-2023-2024.pdf and https://www.dropbox.com/scl/fi/l6dx6pg2zmgn8n9redrwz/Report-of-the-Auditor-General-on-50MW-Solar-Power-Plant-in-Garissa-Project-GCL-No.2015-10-for-the-Year-Ended-2024.pdf?rlkey=78hkr887qe5m21ncbun5tdgi7&dl=0) refers to the 20-year loan being repaid in 26 equal, semi-annual installments, which implies that the loan's grace period is 7-years. This issue warrants further investigation.
The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0

📚 Sources & References

Chinese govt to construct 50MW solar plant in Garissa
Chinese to launch 50MW power plant in Garissa
Interview: Chinese loans help spur Kenya's growth, says official
REA to build Sh12.8bn solar farm in Garissa
China to finance solar plant in Kenya as cooperation deepens
KENYA ELECTRICITY SECTOR INVESTMENT PROSPECTUS 2018 - 2022
十一科技肯尼亚加里萨50MWp光伏电站成功并网
聚焦非洲太阳能光伏发电
加里萨太阳能电站有望今年7月开工建设
Garissa set for Sh13.6b solar farm
Major China-Africa infrastructure cooperation projects
中国进出口银行支持可再生能源
Garissa solar plant break-even in limbo after tariff cut
Garissa-based 55MW solar farm starts operations in Dec
Garissa Solar Power Station
东非最大光伏电站正式投入运营
China to finance solar plant in Kenya as cooperation deepens
东非最大光伏电站正式投运肯尼亚总统为中企竖起大拇指
JinkoSolar Cooperate with CJIC to Develop Kenya’s Largest Solar Power Plant
JinkoSolar Supplies 55.7MW of Solar Panels for Central and Eastern Africa's Large Solar Plant
JinkoSolar equips Kenyan solar plant
Sh13.5 billion Garissa solar plant be commissioned in two weeks
How solar energy is powering off-grid areas in East Africa
中国进出口银行支持可再生能源
KENYA DEVELOPMENT OF SOLAR POWER PLANT IN GARRISA PROJECT 50MW
US EXIM Bank Information Sheet
External-Public-Debt-Register-as-at-End-June-2020.pdf
Kenya Development of Solar Power Plant in Garissa Project
SUMMARY-REPORT-2019-2020
驻肯尼亚大使刘显法出席肯尼亚加里萨太阳能电站启动仪式
The National Treasury Public Debt Management Office Summary Statement 2021/2022
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
AUDITOR-GENERAL'S REPORT ON NATIONAL GOVERNMENT MINISTRIES
DEPARTMENTS AND AGENCIES 2023/2024
Report of the Auditor-General on Rural Electrification and Renewable Energy Corporation for the Year Ended 30 June 2021
Report of the Auditor-General on 50MW Solar Power Plant in Garissa Project (GCL No.2015(10) for the Year Ended ,2024 pdf Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

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Government of Kenya

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