23 November 2007 – A financial advisor is being sought by KenGen to help raise US$1 billion for a generation expansion programme, it was revealed at the KenGen annual general meeting last week.
Said Eddy Njoroge, managing director of KenGen, at a press briefing in Nairobi "We need $1 billion and the financial advisor will give us tips on the right financial mix to go for."
He further revealed that a 10 year generation expansion plan would be released next year, which would focus on 15 areas identified to enhance capital growth, regulation and operational efficiency.
KenGen will also focus on stabilising generation, adding 500MW to the current installed capacity of 1 200MW. With demand peaking at 1 031MW, Kenya was operating with a 7% reserve margin, which was below industry standards.
Strong emphasis would be placed on geothermal power generation, which, despite a higher initial capital investment, was the most cost effective method.
Traditional funding sources were discounted as part of the expansion programme, with Mr Njoroge citing Kipevu and Sondu Miriu as examples of projects that were yet to be completed – 10 years after they were initiated.