Wednesday, May 25, 2016

Kenya: KenGen to Use Rights Issue Proceeds for Olkaria Geothermal Development

Govt Takes Up Sh20.2 Billion Shares in KenGen Rights Issue (

Steam Pipes at Olkaria (Reuters/Noor Khamis )
The Kenya Electricity Generating Company (KenGen) will now be seeking to raise Sh8.64 in its Rights Issue, after the government decided to take up 3 million shares valued at Sh20.2 billion in the issue.

With the additional capital, KenGen plans to commission an additional installed capacity of about 720 MW mainly from affordable, clean and environmental friendly sources. At the moment the power generator's installed capacity is 1,618 MW.

Among the projects lined up is the drilling program for 140 MW Olkaria VII, which is scheduled for delivery by 2020.

The company also expects to complete 25 MW of early generation geothermal wellhead project by June 2016, bringing the total capacity on wellhead generation to 75 MW.

The 140 MW Olkaria V project is expected to come on stream in 2018 and has already attracted funding from development partners, including the French Development Agency (AFD).