23 February 2013

Kenya: Kengen in Sh30 Billion Bond Plan

ELECTRICITY producer, Kengen, said on Thursday it planned to raise Sh30 billion via a 20-year bond to build geothermal power plants.

The firm said the capital raising was still in its initial stages and it expected to seek approval from regulator Capital Markets Authority in a few months. In September, Kengen invited bids for the construction of geothermal plants with a 560 megawatt capacity.

Outgoing Managing Director Eddy Njoroge said on Thursday that Kengen needed about Sh43.5 billion in the next five years to raise electricity supply to 3,000 MW to meet the growing power needs of east Africa's biggest economy. Kenya is the first country in Africa to tap the vast hot steam in the earth's crust.

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