The Kenya Electricity Generating Company (KenGen) plans to add 721MW of electricity from geothermal and wind sources to the national grid in the next five years.
This will be achieved at a cost of USD8.1 billion (Sh800 Billion).
Speaking during the Company’s Annual General Meeting (AGM) held at Kasarani, KenGen MD and CEO, Eng 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 company has identified geothermal projects to be undertaken as Public Private Partnership (PPP) projects as part of project implementation.
The projects lined up for completion by 2020 comprise of 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 Phase 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 priced electricity in the country,” said Eng 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 Government of Kenya’s (GOK’s) industrialisation strategy as a pillar for economic growth and job creation.”
Eng Mugo said the Industrial Park will serve as one of the drivers for regional development and will create significant employment opportunities.
KenGen Chairman, Joshua Choge, announced that the planned projects resulted in 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 a revenue of Sh38.6 billion and a pre-tax profit of Sh11.26 billion during the financial year ended June 30, 2016.
The increased revenue is attributed to revenue from completed flagship 280MW geothermal plants and operation of green, clean and renewable energy from geothermal and wind sources.