Nairobi — Kenya will benefit from a Sh500 billion climate finance through a partnership with the United Kingdom (UK).

This was agreed during a meeting between UK Prime Minister Rishi Sunak and Kenyan President William Ruto on Monday at the COP27 climate summit in Sharm-el-Sheik, Egypt.

Proceeds will fast-truck green energy, agriculture and transport sectors funding.

Sunak praised Kenya's pioneering climate leadership and urged President Ruto to continue championing clean growth.

In a five-year UK-Kenya Strategic Partnership, the fund will unlock mutual benefits for the UK and Kenya.

Focused projects are new geothermal and solar energy generation at Menengai and Malindi, a Sh425 billion Public Private Partnership to deliver the Grand High Falls Dam, which will generate a gigawatt of renewable power.

Others include the green regeneration of central Nairobi anchored around a new central rail station as well as Sh32 billion investment in a climate-resilient agriculture hub for the Lake Victoria region in Kisumu, creating 2,000 direct jobs and 20,000 income for farmers.

"The UK and Kenya go far when we go together. By fast-tracking finance into these clean, green projects with honest, reliable investment the UK is supporting Kenya to advance and maintain its continent-leading climate credentials - with mutual benefits for both our countries," British High Commissioner to Kenya Jane Marriott said.

The UK Government will commit Sh2 billion to a new guarantee company that will lower investment risk and unlock Sh12 billion of climate finance for Kenyan projects over the next 3 years, through collaboration with CPF Financial Services and other private investors.

The Prime Minister praised President Ruto's pioneering climate leadership and urged Kenya to continue along the path of green growth, urging all countries to deliver on the commitments made at COP26 in Glasgow.