Aggreko, the UK emergency power producer, has won the contract to set up a 60 megawatt plant in Western Kenya that could alleviate the plight of industries subjected to power rationing. Aggreko is expected to set up generators by the end of October at Muhoroni area. "They submitted $16.22 per kilowatt hour per month, compared to $21/kwh quoted by the second lowest bidder," said Energy permanent secretary Patrick Nyoike.

He said the company, that has been in Kenya since the year 2000 when the first emergency generators were deployed, would also lower the capacity charge of $21 per kilowatt hour on the old contract signed in 2006 for which 60 megawatts are presently being generated.

KenGen  is expected  to commission two gas turbines with a capacity of 60 megawatts that were being relocated from Mombasa at Nairobi's Embakasi area. KenGen managing director Eddie Njoroge said the company was generating 8.2 million units pf electricity per day, down from 12 million during peak production because of the drought that has occassioned the rationing.

"The dams are currently six meters below the spilling level of 1056.5 meters. We will stop generating when the dams drop to the minimum level at 1037," said Mr Nyoike.

Supply could however be boosted with the expected resumption of the Turkwell plant with a capacity of 53 megawatts from routine maintenance in three weeks. Besides the planned repairs at Turkwell, Kipevu I, Olkaria 1, IberAfrica, Orpower IV's Olkaria plant and Mumias are producing below normal levels because of repairs.

That has seen thermal plants step up production with Aggreko's load factor now between 73 megawatts and 83 megawatts compared to between 50 megawatts and 64 megawatts in the first week of June.

"Thermal IPPs now contribute 32.5 per cent of total available capacity," said Kenya Power managing director Joseph Njoroge. Oil marketers with bulk supply contracts with the generators say they have raised complimentary imports of diesel and fuel oil while others are angling for fresh supply contracts.