Kenya Electricity Generating Company has pushed back its Sh15 billion rights issue by a month as the firm implores the government to defend its share and convert debt to equity.
The power producer, which is 70 per cent owned by the government, is discussing with the Treasury to take up its rights and swap its loans with equity as it races to raise funds for building new power plants and reduce its debt burden.
The power generator said it requires a total of $5 billion (Sh430 billion) in financing through the cash call, bonds and concessional loans to fund new plants to grow its installed capacity to 3,000 megawatts by 2018. It currently has 1,239 megawatts installed capacity.
“Our target was to have the rights issue by June but we see that moving to July because we still are in discussions with government,” said Albert Mugo, managing director of KenGen, at a briefing on Thursday.
The cash call will be midwifed by a consortium including Barclays, Dyer & Blair, KPMG and law firm Hamilton Harrison & Mathews.
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