The government has stepped up power production as it seeks to reduce the cost of doing business. PHOTO | FILE
What you need to know:
Disclosure documents released by the International Finance Corporation (IFC) show that revenue will go to locals in Kipeto, Kajiado County, where the 100 megawatt (MW) plant will be constructed in the first quarter of 2015.
Landowners whose properties will host the turbines will earn more through a 1.4 per cent commission to be charged on sales generated by the turbines.
The local community around Kipeto Wind Project will get a five per cent share of the power venture’s future earnings.
Disclosure documents released by the International Finance Corporation (IFC) show that revenue will go to locals in Kipeto, Kajiado County, where the 100 megawatt (MW) plant will be constructed in the first quarter of 2015.
Locals will get the cash through the Kipeto Local Community Trust, which has a stake in Kipeto Energy Limited (KEL), the company that is putting up the plant whose financial commitment is now around $300 million.
“IFC has invested in the project via IFC InfraVentures to support the development phase of the project ($1.4 million invested to date) and will assume a 20 per cent shareholding in KEL with the remaining five per cent to be awarded to the Kipeto Local Community Trust in the form of revenue/profit share,” says the documents.
The African Infrastructure Investment Fund II is the largest shareholder with a 55 per cent stake, followed by Craftskills Wind Energy International Ltd and IFC, which have a 20 per cent stake each in KEL.
Landowners whose properties will host the turbines will earn more through a 1.4 per cent commission to be charged on sales generated by the turbines.
The landowners have already been earning rental income since 2011. Iberdrola Engineering, a Spanish firm, will construct the farm.
Kipeto plant will be the second largest wind farm after the 300MW Lake Turkana Wind Power Project (LTWP) expected to be up and running by May 2016. Bluesea Energy, KenGen and Aeolus Kenya are the other firms investing in wind energy farms.
Kinangop Wind Park, under construction by Aeolus Kenya, will add 60.8MW to the national grid while KenGen’s Ngong-based farm will add 25MW. KenGen says it will also put up a 100MW farm in Meru. Bluesea is planning to add 40MW in the same county.
Power production has been stepped up as the government seeks to reduce the cost of doing business.
The State plans to increase power production to 5,000MW by 2017 to run manufacturing and agro-businesses. Demand is projected to increase due to social spending by the government.
President Uhuru Kenyatta says all public schools and hospitals will be connected to the national grid by the end of June 2015.
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