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Kenya's KenGen awaits rights issue by second quarter

Kenya's KenGen awaits rights issue by second quarter


Kenya’a electricity generator KenGen is awaiting approval from the country’s electricity board for its planned rights issue by June.

The company has recently said that it plans to spend about $1.57 billion in its expansion programme that will see nearly 500MW added to the country’s grid by 2017.

The power plant is betting on a higher energy consumption due to increased industrial activity in a country that relies heavily on renewable energy.

“We have prepared the draft information memorandum and we are waiting for that to be approved by the board. Our target is to submit it to CMA (Capital Markets Authority) before the end of this month. We are making good progress of course with our target of being able to conclude the rights issue before the end of this financial year,” said Albert Mugo, KenGen’s CEO.

According to the company, the country’s current power demand is still not at its peak hence the need for increased investment.

The country became the first in Africa to tap geothermal power and expects to produce at least 5000MW by 2030.

The firm has secured a loan from Japan International Cooperation Agency (JICA), to fund another power plant in Olkaria.

JICA is a Japanese government agency that coordinates official development assistance