19 September 2007 – The biggest corporate bond ever listed on the Nairobi Stock Exchange may be issued by KenGen, in an effort to secure funding for the construction of mega power plants in order to avert a looming power shortage threat.

$450 million is needed over the next five years to fund the projects. Commitments of some $590 million for 10 projects have already been received. Total expenditure will be in excess of $1 billion.

Eddy Njoroge, KenGen managing director, said work on the deal is expected to begin in the "few coming days" with the power supplier placing adverts in the press inviting bids for financial arrangers to advice on the deal.

"We are keen on doing an infrastructure bond, but the borrowing mode we will adopt will depend on the advice of the financial arranger," he said.

The transaction arranger will advise the power firm on the best avenues of raising money, given the size of debt the firm’s book can handle and the amount of funding the market can provide.

McKinsey & Co have also been retained to reconsider the KenGen strategy, and this could see the utility expanding its presence across African energy markets, after exploiting opportunities at home.