Customers queue at Kenya Power offices. The firm said it plans to spend Sh156 billion between now and 2018. FILE
Kenya Power plans to issue the largest corporate bond at the Nairobi bourse to expand its electricity distribution network in order to keep up with growing demand.
The electricity distributor on Friday said it plans to spend Sh156 billion between now and 2018 and will raise about a fifth of the funds or Sh25.8 billion from a corporate bond.
This will surpass Safaricom’s Sh12.5 billion bond issued in November 2009 and it will be the second time Kenya Power will be returning to the Nairobi bourse after raising Sh10 billion from a rights issue in December 2010.
Lawrence Yego, Kenya Power’s finance manager, said the World Bank would provide $150 million (Sh129 billion), adding that the international financier is also offering technical advice over the proposed bond issue.
The country suffers from frequent blackouts due to supply shortfalls and an aging grid, forcing most businesses and wealthy people to have stand-by generators.
Kenya Power has had to contend with increasing customer connections, particularly in rural areas.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
