Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


KenGen to seek $174 Mln from shareholders

16 January 2014, 08:37

Nairobi - KenGen plans to raise 15 billion shillings from its shareholders in a rights issue offer this year, its chief executive said on Wednesday.

The state-controlled firm, which has 1,250 megawatts of generating capacity out of the country's total of 1,600 MW, will use the funds to develop several new power plants as part of the government's plan to raise installed capacity to 5,000 MW by 2017.

"Looking at the very ambitious plan we have for generation in the power sector, we need the money. We need the equity that will also help us raise more debt and maintain our capital structure," Albert Mugo, told his first news conference since his appointment.

Mugo, who replaced veteran chief executive Eddie Njoroge who left last year, said they prefer a 70 to 30 debt to equity capital ratio. KenGen may consider selling a stake to a strategic investor if there is a need to raise more capital after the cash call, he added.

The firm still requires regulatory approval for the rights issue plan that it hopes will be ready to go by June, Mugo added.

Kenya, which faces frequent black-outs due to generation shortfalls and an ageing grid, hopes to cut power costs by 40 percent in the next few years.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
William Korir
ODM kicks 6 MPs out of Parliament...

ODM has kicked 6 rebel members out of house committees. Read more...

Submitted by
William Korir
Karua now headed to Jubilee?

Is Martha Karua now headed to the Jubilee Coalition? Read more...

Submitted by
William Korir
Kenneth defends move to support U...

Peter Kenneth says that moving to support President Uhuru Kenyatta and the Jubilee Party is his democratic choice. Read more...

Submitted by
S Mbinya
How to keep her interested

It is not only men who lose interest in relationships. Read more...

Submitted by
S Mbinya
What to do after breakup

Your life does not end after breakup. Here are tips to move on: Read more...

Submitted by
S Mbinya
Rare gift for President Uhuru Ken...

Young Jubilee supporters have a rare surprise gift for the President. Read more...