Construction of large coal power plant in Eastern Africa put to halt

By Ibrahim Jaafar Olum

China Bank has cancelled its plans to lend Sh204 billion required to build the largest coal power plant in Lamu, Kenya following court and demonstration battles by environmental actvists to stop the project.

The Industrial and Commercial Bank of China (ICBC) and the consortium signed a 200 billion financing agreement for the project on June 8, 2015 with Kenya’ government.

However, in June 2019 the construction of the power plant was halted by Environmental court following civil groups call for justice in its construction.

The National Environmental Tribunal ruled that National Environment Management Authority (Nema) had failed to do a thorough environmental assessment.

Former Prime Minister cum presidential candidate Raila Odinga during 2017 one person debate on a national television indicated that his party (NASA) would close the plant if elected.

“NASA will cancel the Lamu coal power project if it is a deathbed,” said Mr. Odinga.

Kenya’s Deputy President (DP) Dr. William Ruto by the time he toured Lamu county on a political mission in mid August 2016 campaigned for the establishment of the coal plant and accused Lamu leaders of using propaganda to divert public support for the project.

“We don’t want people opposing development projects that they have no knowledge of,” said the DP.

President Uhuru Kenyatta has been silent on the matter and instead champions for renewable energy.

“To be more specific we, as a country, have committed ourselves to attain 100 per cent green sufficiency by 2020 and we are on the right path towards realizing that target,” said President Kenyatta.

Another major South African Bank pulled out of the deal last year following calls to embrace green energy instead of coal. South Africa Development Bank (AFDB) was among the great investors with interest in the coal plant.

Majority of the local and international environmentalists including the vocal former Lamu MP Shakila Abdalla have praised the move to stop the construction works at the plant in Kwasasi, 21 km north of Lamu town.

“We want environment friendly projects in Lamu which is a UNESCO World Heritage Site. We want projects that will benefit our people without risking their lives. We welcome investors in renewable energy like solar, wind and tidal power which we have in plenty,” said Shakila.

Save Lamu, deCoalonize are among the lobby groups that have held long running crusades against the coal plant in Kenya.

“Eight years on, Amu Power – a joint venture between Centum and Gulf Energy – appears to be the only believer in the project… By ICBC abandoning the project, it appears to be the last nail on the coffin for Amu Power as major financiers and stakeholders heed to a growing call for greener energy solutions.

We are very grateful for the decision by all actors who pull out the project…” stated Walid Ahmed chairman Save Lamu in a message sent to the New York Parrot.

The then Lamu County Minister for Trade,Tourism,Culture, Investment and Natural Resources, Samia Omar who resigned in 2016 expressed her concern too that as a County Executive for the sensitive portfolio her mandate and obligation to the public is conflicted between promoting investment in Lamu, and preserving the environment.

“Having read the Environmental and Social Impact Assessment (ESIA) of the Lamu Coal Power Plant, I am convinced that the project will have irreversible and profound impact on Lamu,” said Samia during her resignation press briefing.

She urged President Kenyatta to now make it official the end of Lamu coal plant following the withdrawal of major financiers.