KenGen looks to raise $5.5bn in debt and equity to double capacity

Geothermal well at Menengai, Kenya (source: flickr/ ScientificDrill)
Alexander Richter 31 Oct 2013

KenGen is planning a fundraising campaign for up to $5.5 billion in debt and equity financing mostly to come from development banks to finance its ambitious plan of adding 2,500 MW in power generation capacity in Kenya.

Reported yesterday, Kenya Electricity Generation Company (KenGen) is now planning to raise up to $5.5 billion in debt and equity until 2018 to finance its ambitious growth plans and a doubling of its power generation capacity in Kenya.

Kenya’s average power capacity demand is at 1,700 MW, with a strong dependency on in-secure hydro power generation due to lack of rain falls feeding the hydro dams.

Acting Managing Director of KenGen, Simon Ngure, says KenGen is planning the addition of up to 2,500 MW in capacity in the coming four years. By the end of 2014 the company wants to have added 350 MW of geothermal power generation capacity up from its capacity of 157 MW today.

The company plans to raise money in a split of equity and debt, planning to maintain an equity to debt ratio of 70:30. KenGen expects about 70 percent of the funding to come from developing finance institutions and the remainder from joint ventures, essentially meaning public private partnerships, likely with foreign participation.

Source: Reuters