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, a pioneer 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, and its development has been supported by Financial Sector Deepening (FSD Africa) 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, the huge potential of geothermal energy makes it not only an energy source but also a driver of economic growth and sustainable development.
He added that Kenya is endowed with vast geothermal resources, and great progress has been made in tapping into this clean power.
"However, for us to fill the energy gaps, we need collaboration and investment between the public and private sectors," reiterated the PS in a speech read on his behalf by a representative from the Department.
Wachira emphasised that collaborations are a key step 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.
Click here to read the original article in the Mount Kenya Times
