08 October 2008 – The Kenyan government has announced plans to set up a second state run distribution company in order to meet its target of connecting a million new customers to the national grid by 2012.
Speaking this week, energy minister Kiraitu Murungi said the government would also form another company to take advantage of Kenya’s vast geothermal resources and meet growing demand for electricity in the East African country.
"Towards this end, my ministry is in the process of establishing a state-owned electricity transmission company," the minister said at a national energy conference. "The government has provided 750 million shillings for this purpose this financial year."
"There is a looming power supply crisis in this country. To address this challenge … my ministry is in the process of forming a state-owned Geothermal Development Company (GDC) to be operational in January 2009," he said, continuing that Kenya was unable to keep up with the demand of electricity, and the result was frequent power outages.
Kenya has an installed capacity of 1 215MW, with a peak demand of 1 150MW.