U.S. Energy Secretary Questions Kenya Coal Funding as Trump Govt Signals Support

U.S. Energy Secretary Questions Kenya Coal Funding as Trump Govt Signals Support

The United States has questioned international financing restrictions affecting energy projects in Africa, with Energy Secretary Chris Wright citing Kenya’s proposed coal-fired power plant as an example of projects that have struggled to secure funding.

Wright made the remarks on Friday, September 18, during a discussion on US-Africa energy cooperation hosted by the Center for Strategic and International Studies (CSIS). He said the proposed coal plant in Mombasa had faced difficulties attracting financing from international development institutions, commercial banks 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.”

The US official questioned the financing policies applied to African energy projects, arguing that governments should have greater flexibility to select energy sources based on their domestic resources and development priorities.

“That’s nuts. And it’s wrong.”

Wright said the administration of President Donald Trump was prepared to engage African countries on a broader range of energy resources, including coal, natural gas, oil refineries, small modular nuclear reactors, geothermal energy and solar power.

His comments did not amount to a commitment by Washington to finance Kenya’s proposed coal project. Wright did not identify a US agency or financial institution that would provide funding for the project.

Instead, his remarks focused on what he described as barriers to financing energy infrastructure across Africa, where limited access to reliable and affordable electricity remains a challenge for economic development.

Kenya has significant geothermal resources and has invested heavily in renewable energy, particularly geothermal, wind and solar power. The country has also continued to explore additional sources of electricity to meet growing demand from households and industries.

The discussion comes as Kenya considers new energy investments along the Coast, including a proposed 1,000-megawatt liquefied natural gas (LNG) power plant linked to Nigerian businessman Aliko Dangote’s planned refinery in Lamu.

Kenya is negotiating with Dangote Industries over the development of the proposed refinery and associated energy infrastructure. The power plant could provide electricity for refinery operations, with surplus electricity potentially supplied to the national grid.

The LNG required for the facility could be sourced from Tanzania. Options under discussion include transporting the gas through a pipeline or using tankers to deliver LNG to a receiving facility at Lamu.

The proposed arrangement would combine petroleum refining and electricity generation, potentially creating an industrial and energy hub in Kenya’s coastal region.

However, the LNG power project remains under negotiation. Its implementation would depend on agreements covering financing, gas supply, electricity purchases, infrastructure development and environmental requirements.

Wright’s comments also come amid a broader debate over how African countries can expand electricity generation while attracting investment into energy-intensive industries.

For Kenya, the debate involves balancing different sources of power as the country seeks to increase electricity supply for industrialisation while maintaining its existing investments in renewable energy.

The proposed coal-fired plant in Mombasa has previously faced opposition and financing challenges, while Kenya has increasingly relied on geothermal power as a major source of electricity.

The US administration’s position, as outlined by Wright, signals support for a broader approach to energy investment in Africa, although it remains unclear whether the policy will translate into financing for specific Kenyan projects.

For now, Kenya’s proposed coal and LNG projects remain at different stages of development, with financing, environmental approvals and commercial agreements still determining their eventual implementation.

ALSO READ: Ruto to Meet Dangote at UNGA Over Ksh2.2 Trillion Lamu Refinery

U.S. Energy Secretary Questions Kenya Coal Funding as Trump Govt Signals Support