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Kenya power to spend KES 86B to upgrade network

24 February 2014, 08:32

Nairobi - Kenya Power said it planned to spend 86 billion shillings in the next three years to upgrade its electricity distribution network in order to keep up with growing demand.

The cash will go to building new substations and power lines and upgrading existing infrastructure to enhance the stability of the power supply, Ben Chumo, the company's chief executive, said in a statement on Friday.

Kenya suffers from frequent blackouts due to supply shortfalls and an aging grid, forcing most businesses and wealthy people to have stand-by generators.

The country plans to add 5,000 megawatts of power generation capacity by 2017 to the existing 1,664 MW.

Kenya Power, its sole electricity distribution company, already has had to contend with an increasing number of customer connections, particularly in rural areas.

The company previously said it planned to raise cash through a bond and seek a loan from the World Bank.

The grid operator, which serves more than 2 million customers, depends on power supply from hydropower stations and geothermal plants, which are run by the Electricity Generating Company.

- Reuters


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