New KenGen boss seeks Sh30b to fund projects

By NICHOLAS WAITATHU

Kenya Electricity Generating Company (KenGen) new boss says the firm will raise Sh30 billion this year to fund energy projects.

Mr Albert Mugo, who was introduced to the media yesterday, 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.  Mugo pledged to fast track various projects the company is presently undertaking in the country.

The money will come from a split of equity and debt with the company assuring it will maintain equity to debt ratio of 30:70.  In its plan, the company will source a large part of the finance from local commercial banks and development finance institutions, rights issue, joint ventures and sale of shares to strategic investors.

Of the money to be sourced this year, Mugo 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,” said Mugo.

For instance, the company says it is on schedule to complete 280mw geothermal power plant, which is expected to come on stream by mid this year. This will assist to reduce reliance on expensive thermal power and the weather-dependent hydro energy.