Kenya and Germany Forge Green Alliance, Pledging Billions for Renewable Energy and Green Hydrogen
NAIROBI — Kenya and Germany have elevated their bilateral relations to a strategic Green Alliance, with Berlin committing over €400 million in new funding and investment guarantees to propel Kenya’s transition to a 100% renewable energy economy. The landmark agreement, announced during a visit by German Chancellor Olaf Scholz, focuses on developing Kenya’s vast green hydrogen potential, expanding geothermal and solar power capacity, and building climate-resilient infrastructure. The partnership marks a significant European commitment to Kenya’s vision as a global leader in clean energy and a hub for green industrialization.
The comprehensive package includes concessional loans from German development bank KfW, investment guarantees for private sector ventures, and direct grants for technical cooperation. A major component is a joint feasibility and development initiative for a large-scale green hydrogen production facility in Kenya’s wind-rich north, aimed at producing carbon-free fuel for both domestic use and export. Further agreements cover German support for modernizing Kenya’s electricity grid to handle more renewable input, funding for vocational training in green energy sectors, and collaboration on sustainable urban mobility projects in Nairobi and Mombasa.
This Green Alliance is a transformative partnership for a shared future, said President William Ruto. It aligns Kenya’s abundant natural capital with German technology and investment, creating jobs, protecting our planet, and powering sustainable growth. Chancellor Scholz emphasized the strategic importance of Kenya as an anchor nation in a region critical to global climate stability. Kenya is already a pioneer in renewables. We are now combining forces to industrialize this green power, creating a model for Africa and the world, he stated.
The long-term impact of the alliance is expected to be profound, positioning Kenya as a key producer and exporter of green hydrogen to Europe while securing its own energy sovereignty. Analysts note that the partnership could attract further European private investment, accelerate Kenya’s carbon-neutral goals, and set a new standard for climate-focused development diplomacy. Success will hinge on efficient project execution, robust governance, and ensuring local communities benefit from the green industrial boom. The alliance signals a new era where economic partnership is fundamentally tied to shared ecological and technological ambition.