Kenya to diversify its generation sources

Kenya to diversify its generation sources

The Kenyan government is diversifying its power generation sources in a bid to combat the effects of drought, according to energy minister Francis Masahkalia.

He said 383 MW of the 527 MW that will be connected to the grid by 2003 will be generated from non-hydro sources. Currently, some 80 per cent of Kenya`s supply is from hydro sources. A long spell of drought has caused water levels in the three main reservoirs to fall, resulting in power shortages.

The government also said it would inject Sh32.5bn ($431m) into the power sector by 2004.

The Kenya Light and Power Company stands to gain Sh1.7bn from the sharing of assets with Kenya Electricity Generating Company (KenGen) following the separation of the roles of the two companies.

KPLC said that a 1997 valuation formula showed that KenGen was to transfer assets worth Sh4bn to KPLC, while KPLC was to transfer assets worth Sh2.3bn leaving a net debt of Sh1.7bn.

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