Mombasa, KENYA: Kenya Electricity Generating Company – KenGen on Tuesday launched Rights Issue to its shareholders in Mombasa.
Speaking in Mombasa KenGen Operations Director, Engineer Richard Nderitu, said shareholders have shown a lot of interest in the offer owing to the company’s bright prospects, especially in geothermal power generation.
“The Government, which is the principal shareholder, has taken up its full entitlement of rights, representing 70% of the transaction, through the conversion into equity of loans on-lent to KenGen. We are confident that by the close of the offer, a good number of other shareholders would have taken their entitlements too.” Said Mr. Nderitu.
He observed that the rights that will not have been taken up by shareholders will be sold to non-shareholders through the Rump Issue which closes on June 17th, 2016.
“We are encouraging all the shareholders to take their rights those who renounce their rights will be taken by other Kenyans and even foreign investors.” Added Nderitu.
The company launched KSh29 billion Rights Issue, offering a total of sh 4, 396, 722, 912 new ordinary shares at a discounted price of Shs 6.55 per share to raise Ksh29 billion for business expansion.
The Rights Issue closes on Friday June 10, 2016.
The Company plans to commission an additional installed capacity of about 720MW mainly from geothermal by 2020. The current power generator’s installed capacity is 1,618Mega Watts.
Among the projects lined up is 140MW Olkaria V, which is scheduled for delivery by 2018.
On Tana River flooding, engineer Nderitu clarified that KenGen has dismissed media reports saying that the company does not release water from the dams to the fields.
“The dams actually minimize flooding by holding as much water as they possibly can. As a matter of fact, the dams help mitigate floods without which the effects would be worse. It should also be noted the flooding has been as a result of the river bursting its banks owing to heavy rains.” said Eng. Nderitu.