Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


KenGen awards Kindaruma contract

NAIROBI, Kenya, Jan 11- The installation of a 24 MegaWatt (MW) third turbine generator at the Kindaruma Power Station is set to start soon following the awarding of a Sh3.93 billion contract to an Austrian company, Andritz Hydro GmbhH.

The Kenya Electricity Generating Company (KenGen) picked the Austrian company on Monday to set up and rehabilitate the two existing turbine generator units at the station, a project that is expected to be completed in 41 months.

“The award of the contract follows the highly successful KenGen Public Infrastructure Bond which attracted applications of Sh26.6 billion against a target of Sh15 billion. Part of the funding for the new unit and the rehabilitation works will be made from the funds raised from the bond,” said KenGen Managing Director Eddy Njoroge.

Kindaruma Power Station was originally designed and constructed with a provision of three turbine generator units, but only two were initially installed. The installation of the third generator will boost the output of the power station from 40 MW to 72 MW.

“This is part of our efforts to ensure we stabilise the power situation in the country as we pursue our long term goal of focusing on sustainable and renewable energy sources like geothermal and wind,” said Mr Njoroge.

The project is being co-financed by Kreditanstalt fur Wiederaufbau (KfW) of Germany and KenGen. The civil works for the project will be carried out under a different contract which is currently at the tendering stage, Mr Njoroge added.

Kindaruma Power Station which is located about 160 km north east of Nairobi on River Tana was commissioned in 1968 as the first major development of the Tana River Seven Forks Hydroelectric cascade. It lies between the upstream Gitaru and downstream Kiambere Hydroelectric Power Stations.

The signing comes after KenGen successfully secured the dismissal of an appeal lodged by Voith Hydro, one of the companies that had unsuccessfully bid for the project. The Procurement Appeals Review Board made its decision on January 8 2010.

Andritz Hydro GmbhH has been in the hydro power industry for the last 160 years and was selected after a successful tendering process.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...