The World Bank is redefining its global energy financing strategy with significant implications for countries like Kenya.
World Bank President Ajay Banga announced plans to seek board approval in June for an “all of the above” energy approach, which for the first time, include nuclear energy in the bank’s lending portfolio. This marks a departure from its previous focus only on renewable energy projects to other alternative sources.
The World Bank’s proposal to include nuclear energy financing is significant for Kenya, which has been actively pursuing its nuclear dream for several years.
Concessional loans for nuclear energy projects offered by the World Bank will significantly direct more private finance toward such initiatives.
This is made possible because the World Bank’s consideration for such projects will cause perceptions of risk involving nuclear projects to be seen in a more favourable light thus improving their commercial viability.
Experience has shown that concessional loans can help attract a substantial percentage of private finance. The cost of capital is important since nuclear energy projects require high upfront spending.
This is the case in a world where institutional investors hold trillions in assets but currently have limited involvement in the energy sector in African countries.
For Kenya, which is actively pursuing diversified and sustainable energy strategies, the shift offers a timely opportunity. The country is already laying the groundwork for a nuclear energy programme as anchored in the Least Cost Power Development Plan, and the World Ban’s potential support could accelerate these efforts.
Nuclear energy’s ability to provide consistent baseload electricity is particularly valuable for powering industries, homes, hospitals, schools, and digital infrastructure, complementing existing sources like geothermal and hydropower.
As the World Bank prepares to formalise this policy shift, Kenya stands to benefit from the expanded financing options. Nuclear energy inclusion in the bank’s portfolio could unlock new avenues for funding and technical assistance, supporting Kenya’s energy diversification goals.
In essence, concessional loans by the World Bank for nuclear projects will prompt many private companies to fund greenfield and brownfield nuclear projects in developing countries such as Kenya.
Beyond its technical advantages, nuclear energy contributes significantly to the UN Sustainable Development Goals (SDGs). It supports SDG 7 (Affordable and Clean Energy) by providing low-carbon, cost-effective electricity that can reach underserved areas.
It also advances SDG 13 (Climate Action) by offering a clean alternative to fossil fuels, enabling countries like Kenya to grow economically without significantly increasing emissions.
Furthermore, nuclear energy supports SDG 3 (Good Health and Well-being) through improved access to medical technologies and clean cooking solutions, and SDG 9 (Industry, Innovation, and Infrastructure) by powering modern, resilient infrastructure.
The World Bank's broader and more inclusive financing strategy reflects a growing global consensus that each country must be supported in choosing its own energy mix based on its unique needs and resources.
Kenya's commitment to a low-carbon future aligns well with the responsible use of nuclear energy, and the World Bank's support can help accelerate the country's progress.
With the right investment and partnerships, nuclear energy can become a cornerstone of Kenya's sustainable development journey, delivering long-term benefits for people, the economy, and the planet.
The writer is the CEO of Nuclear Power and Energy Agency
