Kenya: Kengen to Invest in Renewable Energy Projects Worth Sh800 Billion
Posted on :Friday , 2nd December 2016
Nairobi — The Kenya Electricity Generating Company (KenGen) plans to add 721Megawatts (MW) of electricity from geothermal and wind sources to the national grid in the next five years at a cost of Sh800 billion.
KenGen MD and CEO Albert Mugo, said the additional capacity was in line with the government's efforts to make power accessible and affordable.
He said the company has already secured some funding from development partners and internal resources while other financing opportunities are being explored.
In June the company successfully raised Sh26.4 billion through a Rights Issue, whose proceeds will go into the development of the energy projects.
The projects lined up for completion by 2020 comprise the Olkaria V 140MW, Olkaria VI 140MW, Olkaria VII 140MW, Olkaria I Unit 6 70MW, Wellheads 25MW, Olkaria I Rehabilitation 5.7MW, Olkaria I AU & IV topping plant 60MW.
The Meru Wind Faze I 80MW, Geothermal Wellheads 50MW and Ngong III project 10MW are also at an advanced stage.
"With our internal well equipped and motivated workforce coupled with requisite funding from our bilateral partners for the projects in the pipeline, KenGen is well positioned to deliver on promise and continue to be the market leader in the provision of competitively price electric energy in the country," said Mugo.
KenGen is also exploring other businesses under the new business initiative that seeks to improve our revenue stream from non-generation based revenue and has identified an industrial park in Olkaria area.
The development of the KenGen Industrial Park will not only target the optimisation of KenGen business operations, but also support the governments' industrialisation strategy as a pillar for economic growth and job creation.
Mugo said the Industrial Park will serve as one of the drivers for regional development and will create significant employment opportunities.
On his part, KenGen Chairman, Joshua Choge announced that the planned projects resulted into the decision of the Board of Directors not to recommend dividend payment.
Choge underscored the commitment of the company to grow shareholder value as evidenced by the strong full year performance.
The energy utility recorded revenue of Sh38.6 billion and a pre-tax profit of Sh11.26 billion during the financial year ended June 30, 2016.
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