Nairobi, Kenya — ESI-AFRICA.COM — 29 November 2010 – Kenya “’ East Africa’s biggest economy “’ needs to invest a total of at least US$500 million (R3.5 billion) by 2014 to upgrade and expand its electricity grid in order to reduce the alarming number of power cuts it is experiencing.
Revealing this to reporters here, Energy Ministry permanent secretary Patrick Nyoike, said the government had already raised US$ 199 million (R1.39 million), which it had given to Kenya Power & Lighting Limited “’ the nation’s sole electricity distributor. Additional funds would be raised from the company’s current rights offer,” he added.
“KPLC, as the company is known, will raise about US$112.6 million (R788.2 million) through its capital reorganisation,” managing director Joseph Njoroge said. “The company was converting preference stock to ordinary shares, issuing new shares and splitting its stock, increasing the number of its shares to 1.73 billion from 79.13 million,” he added.
“Upgrading the power distribution system in Kenya will increase per capita consumption of electricity to 300 kilowatt hours per year from 144 kilowatt hours,” Nyoike said. “Kenya currently has an average of 6 000 power cuts per month,” he added.