Nairobi, Kenya — (ESI-AFRICA.COM) — November 15, 2010 – The Kenya Power & Lighting Co. Ltd (KPLC) is to invest approximately US$39 million in prepaid metering that will start to be rolled out early next year.
Approximately $31 million (KSh2.5 billion) is to be allocated from a new rights issue that will be floated later this month, and $8 million from a new World Bank loan.
According to local media reports there is high demand for prepay meters, following an overwhelming reception to an initial 23,000 meters, and the rights issue funding is expected to cover approximately 300,000 new prepay meters.
The rights issue, along with a capital base restructuring, is aimed at improving KPLC’s creditworthiness and raising funds for the refurbishment and further development of the power system to meet the growing demands of an expanding economy.
The targeted projects will help KPLC reduce losses as well as enhance the quality and reliability of power supply throughout the country. Of the KSh7 billion to 10 billion it is expected to raise, KSh4.9 billion also will be allocated to power reinforcement and distribution projects, and KSh2.8 billion to various transmission network projects, KPLC managing director and CEO, Eng. Joseph Njoroge, said in a statement.
The $102 million World Bank loan is intended to finance acceleration of access to electricity in Kenya.