- The project will supply electricity to Kenya’s national grid while positioning the university as the first in the country to generate power at utility scale.
- The USD 50 million solar plant will be delivered under a private sector-led financing model to reduce upfront costs for the university.
- The initiative highlights alternative infrastructure financing mechanisms to support Kenya’s energy expansion and reduce electricity costs.
The Cooperative University of Kenya has announced plans to develop a 40 MW solar power plant to supply electricity to the national grid, following approval from the Energy and Petroleum Regulatory Authority.
University chancellor Dr Bernard William Chitunga said the project, valued at approximately USD 50 million, will be implemented in partnership with Dahai Shandong. Under the agreement, the private partner will fund, construct, and operate the facility for a defined period before transferring ownership to the university.
Dr Chitunga explained that the financing model is designed to ease budgetary pressure on both the university and the state, neither of which has the capacity to independently finance large-scale energy infrastructure. The arrangement allows the university to avoid substantial upfront expenditure while benefiting from lower electricity costs and a share of revenue from power sold to the grid.
Once operational, the solar plant is expected to make the Cooperative University of Kenya the first higher education institution in the country to generate electricity at utility scale. Beyond providing clean power to the national grid, the initiative aims to demonstrate alternative financing mechanisms that could accelerate delivery of major infrastructure projects in Kenya.
Dr Chitunga noted that electricity costs in the country remain high, and that Kenya’s planned expansion of 10,000 MW of new generation capacity cannot be achieved through public funding alone. He highlighted the need to mobilise private capital, including infrastructure investment funds and sovereign wealth funds, to meet rising energy demand.
The solar facility is expected to be commissioned later this year. The university plans to monitor the project’s financial performance closely, with electricity generation contributing to national supply and supporting efforts to reduce consumer power costs.
Author: Bryan Groenendaal
