NAIROBI, Kenya, Feb 23 – The Kenya Electricity Generating Company (KenGen) has announced plans to sell 351 million shares equivalent to a 5.33 per cent stake to a South African pension fund, Public Investment Corporation SOC Limited.
The deal which is subject to regulatory approvals will see KenGen sell the shares at Sh6.55 each to raise Sh2.3 billion.
Last year, the firm’s Rights Issue fell Sh2.4 billion below target posting a 92 per cent subscription raising Sh26.4 billion from a target of Sh28.8 billion.
The money from the rights issue was to implement the 700 Megawatts (MW) target by 2018.
The firm’s projects include the 140MW Olkaria V, 70MW Olkaria I unit 6 and Meru Wind phase 1 (80MW) and have already attracted funding from development partners.
“The proposed allotment may have an effect on the trading of the shares of KenGen. Shareholders and the public in general are advised to exercise with caution when dealing in the shares of KenGen,” the firm said in a statement.