Last Updated 13 years ago by Kenya Engineer
Kenya Electricity Generating Company ( KenGen) new Chief Executive Officer, Albert Mugo says the firm will raise Sh30 billion this year to fund energy projects in Kenya. Mr. Mugo who is also a registered member of The Institution of Engineers of Kenya (IEK) during his first press conference on Wednesday, said the funds are part of Sh467 billion being sought on a long-term basis to generate additional 2,500 megawatts of electricity in the next four years. Mr. Mugo pledged to fast track various projects the company is currently undertaking in the country.
For instance, the company says it is on schedule to complete 280mw geothermal power plants, which are set for completion by the third quarter this year which will help reduce reliance on expensive thermal power and the weather-dependent hydro energy.
The money is set to come from a split of equity and debt with the company assuring it will maintain equity to debt ratio of 30 is to 70. The firm will source the greater part of the finance from local commercial banks and development finance institutions, rights issue, joint ventures and sale of shares to strategic investors.
The Company CEO confirmed that sometime this year, the company would seek Sh15 billion from the shareholders through a Rights Issue while the rest of the cash will be sourced from strategic investors and debt market.
“This money will assist us to kick start an ambitious energy production plan the Government rolled out last year to produce more than 5,000 megawatts in the next 36 months. Under that programme, our company has lined up a number of projects to be undertaken to ensure its success,” concluded Mr. Mugo.
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