Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
British Minister for Environment and Fisheries Richard Benyon toured the Olkaria geothermal fields


KenGen investing heavily in renewable energy

British Minister for Environment and Fisheries Richard Benyon toured the Olkaria geothermal fields

British Minister for Environment and Fisheries Richard Benyon toured the Olkaria geothermal fields

NAIROBI, Kenya, Feb 21 – The Kenya Electricity Generating Company (KenGen) is planning to use asset backed securities to raise over Sh2.4 trillion through a 20-year bond in order to finance its ambitious geothermal expansion plans.

KenGen Managing Director Eddy Njoroge said that the utility will need an estimated Sh437.5 billion in the next five years in order to deliver adequate power in the face of rapidly growing demand.

“We plan to use the steam – already drilled – as collateral to raise additional affordable capital from the market,” he revealed.

“We shall use this capital to build power plants and use the revenue from the sale of power to pay those who have invested in us,” he added.

KenGen is set to double current total capacity to 3,000 Megawatts by 2018.

The Managing Director further said that the firm has appointed a financial advisor to guide the company’s financial options going forward.

The Asset Backed Securities Regulations of 2007, provide that an originator can transfer an asset which has clear cash flows to a separate institution (a special purpose vehicle, created to handle the securitisation of asset backed securities) and this separate entity would then issue a bond.

The cash flows from the asset would service the repayments of the bond.

Njoroge was speaking in the company of the British Minister for Environment and Fisheries Richard Benyon, who toured the Olkaria geothermal fields and the pioneer geothermal well head generator.

The British Minister noted that KenGen was wise in investing heavily in renewable energy.

Advertisement. Scroll to continue reading.

“I am very impressed with what I have seen here today. What’s most appealing is that all this is green and renewable energy. Such development is both stable and sustainable,” he said.

His delegation, which included officials from the British High Commission in Kenya, also toured the Natural Sauna and Spa being constructed by KenGen in Olkaria.

The geothermal-based facility to be completed in April this year is the largest in the African continent.

Njoroge also revealed that the utility has a Memorandum of Understanding with the Kenya Wildlife Service regarding the Olkaria geothermal field, which is housed within the Hell’s Gate National Park to ensure the delicate eco system of the area is maintained.

“Further, we always conduct comprehensive Environmental and Social Impact Assessment Tests as well us work closely with NEMA to ensure our projects have minimal impact on the environment,” he said.

“We appreciate that we must strike a balance within supplying the so much needed electricity while conserving the environment,” he emphasised.


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...