State goes slow on Sh200b coal plant as protest mounts

Investors in the Sh200 billion Lamu power plant, whose construction was planned for March 2017, are worried following delays by the National Treasury in signing the letter of support that are needed to kick off the project.

The letter of support is a commitment that the government will support the project. It is like political risk insurance in that the government, whether current or future, commits never to confiscate, expropriate, nationalise or deprive (CEND) the plant. It gives financiers and the private investors a guarantee of recouping their investments when the project is complete and in operation.