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Lamu Coal Power Project in limbo after AfDB holds back funding

The African Development Bank (AfDB) will not fund a coal-fired power plant project in Kenya and has no plans to finance new coal plants in future, senior AfDB officials told Reuters.

The Abidjan-based lender published an environmental and social impact assessment in May for the Lamu project, which was planned near a UNESCO world heritage site but which was halted by a local environmental tribunal.

The project to build a 1,050 Megawatt plant in Eastern Kenya was backed by Kenyan and Chinese investors. Construction was initially planned to start in 2015.

Dozens of top banks, insurers and development finance institutions are restricting coal investments, as climate activists and investors voice growing concerns about the impact of burning fossil fuels, particularly coal.

AfDB president Akinwumi Adesina told Reuters at a conference in South Africa that the bank took environmental concerns seriously and was focusing on renewable energy, adding that coal projects risked becoming “stranded assets” on the AfDB’s balance sheet.

According to AfDB’s Vice President “(AfDB) did not move forward with the Lamu Coal transaction and had no plans to do so in the future,”

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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