US Energy Secretary Chris Wright has criticised international lenders for refusing to finance a proposed coal-fired power plant in Mombasa, Kenya, arguing that African countries should have greater freedom to choose the energy sources that meet their development needs.
Speaking during a discussion on US-Africa energy cooperation hosted by the Center for Strategic and International Studies (CSIS) on September 18, Wright said the proposed Kenyan coal project had struggled for years to secure financing from international development banks, commercial lenders and governments.
“They’ve been trying to build a coal-fired power plant in Mombasa, in Kenya for years. And no one, no international development bank, no commercial bank, no government would fund that,” Wright said.
Wright questioned financing restrictions affecting energy projects in Africa, saying the US administration wanted to work with African countries on a broader range of energy sources, including coal, natural gas, geothermal, solar power and small modular nuclear reactors.
His remarks come against the backdrop of a broader decline in international financing for new coal-fired power projects. Major multilateral and development finance institutions have increasingly moved away from financing new coal projects, while global coal financing has become concentrated among a smaller group of financiers.
Kenya’s proposed coal power project on the Coast has faced years of financing, environmental and legal challenges. Potential financiers, including the African Development Bank and China’s ICBC, previously declined to finance the Lamu coal project.
Wright did not announce US funding for the Kenyan coal project or identify a specific American institution that would finance it. His comments instead signalled support for allowing African governments to consider a wider range of energy options based on their domestic priorities.
The comments come as Kenya explores other major energy investments along the Coast, including a proposed 1,000-megawatt liquefied natural gas (LNG) power project in Lamu linked to Nigerian businessman Aliko Dangote’s planned refinery. The LNG project remains under negotiation, with financing, gas supply, power-purchase arrangements and environmental requirements still to be addressed.
