Kenya expects big biofuels investment
Kenya expects $500 million (389.4 million Euro's) worth of foreign investments in biofuel crop production over the next two years, a government official has announced. Romano Kiome, permanent secretary in the agriculture ministry, says five multinational firms from the US, Japan, and the UK had applied to be considered in a government land-lease scheme.
Crops such as jatropha, croton, sweet sorghum and sugar will be planted, creating jobs and eventually lowering energy costs in east Africa's biggest economy.
'We are taking the production of biofuels in the country very seriously. We believe that if we link up with the private sector, we will benefit in terms of jobs creation and production of diesel,' Kiome comments.
Under the arrangement, firms like Japan's Biofuels International will lease land in various parts of the country. 'We will give them a lease for a given period of time depending on the investment. We shall look at the internal rates of return of those projects,' Kiome adds.
Approximately 500,000 acres have been earmarked for the companies and Kiome estimated over 100,000 jobs would be created as a result of the initiative, including farmers who will be outgrowers.
The companies will sell the fuel locally or export it, although the government is still fine-tuning laws governing that area. 'We still have to finalise the biofuels policy with the ministry of energy so that we know how it will be marketed,' Kiome remarks.
Crops such as jatropha, croton, sweet sorghum and sugar will be planted, creating jobs and eventually lowering energy costs in east Africa's biggest economy.
'We are taking the production of biofuels in the country very seriously. We believe that if we link up with the private sector, we will benefit in terms of jobs creation and production of diesel,' Kiome comments.
Under the arrangement, firms like Japan's Biofuels International will lease land in various parts of the country. 'We will give them a lease for a given period of time depending on the investment. We shall look at the internal rates of return of those projects,' Kiome adds.
Approximately 500,000 acres have been earmarked for the companies and Kiome estimated over 100,000 jobs would be created as a result of the initiative, including farmers who will be outgrowers.
The companies will sell the fuel locally or export it, although the government is still fine-tuning laws governing that area. 'We still have to finalise the biofuels policy with the ministry of energy so that we know how it will be marketed,' Kiome remarks.
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