The much-awaited Ksh15billion Rights Issue by Kenya Electricity Generating Company (KenGen) has been pushed to August and not in June as previously communicated, after the company MD Albert Mugo said that talks with the government have been long overdue.
The government owns 70% stake of KenGen and has been mulling over a move to convert its debt into equity to defend the company’s position. “Talks are in advanced stages with the government and we are on the final stages for approvals that the State requires. We expect to get the government’s nod before the end of this month,” noted Mr Mugo while announcing the company’s performance for the half year ending December 2014 on Friday.
KenGen made a net profit of Ksh4.9 billion compared to Ksh1 billion in the same period in 2013 translating to a 38.4% increase. “Our revenue moved from Sh8 billion to Sh11 billion, and that was mainly contributor of that was about the three months of full running of the geothermal. We expect the other half year, when that geothermal plant will half run at the 280MW capacity, the results will even be better,” he said.
From the Rights Issue, KenGen is targeting to raise over Ksh30billion. Half of the money is coming from the shareholders while the other half will come from the government. “We expect the government to convert around Ksh20billion,” added the company MD.
The funds will be used to finance the energy projects in the country within the next three years. Some of these projects are geothermal and wind power in Ol Karia and Turkana respectively. This will add over 3,000MW to the national grid.
Leave a comment