The Kenya Electricity Generating Company (KenGen) is planning to set up a third thermal power generating plant at Kipevu, Mombasa, at an estimated cost of KSh1.05 billion, reported Kenya Broadcasting Corporation. The 120MW power plant is waiting for Capital Markets Authority to approve its Information Memorandum.
The power generated from the plant will be used to boost electricity supply for the nation. The company had said that it will use a portion of the proceeds from the Public Infrastructure Bond Offer to fund the construction of the plant.
Eddy Njoroge, MD of KenGen, said: “The proposed 120MW thermal power plant will help KenGen expand its generation capacity and diversify its power sources which is in line with the overall business strategy.
“This demonstrates there is an unsatisfied demand for long term debt instruments which KenGen would like to use to finance investments in addition to the country’s power generation capacity. The Debt Capital Market gives KenGen an opportunity to raise funds to finance our capital expenditure in a flexible manner, while at the same time allowing Kenyans to participate in infrastructural development through an attractive investment opportunity.”
