THISDAY

Kenya Power Receives $10m Loan Facility from UBA

- Eromosele Abiodun

Kenya Power company said it has obtained a $10million loan facility from the United Bank of Africa (UBA) to upgrade its infrastruc­ture to distribute 5,000MW by 2017.

The $10mn loan facility from UBA will boost the capacity of the power company’s transmissi­on lines. According to Kenya Power, the facility is part of a syndicated loan from a number of lenders to finance the planned infrastruc­ture expansion. The company is Kenya’s sole power distributo­r. The company said in a statement that the financing would be used to boost the capacity of transmissi­on lines, upgrading existing substation­s and constructi­ng 37 new ones, while also installing new equipment in the power grid.

“Completion of these capital investment­s on time is critical for long-term viability of our company. It will also make Kenya attractive as an investment destinatio­n,” said Kenya Power Managing Director, Ben Chumo.

“In the recent past, industrial­ists have complained of power outages occasioned by aging infrastruc­ture, leading to increased cost of production as companies have been forced to install stand-by generators. This has made locally produced goods less competitiv­e in the regional markets. UBA, whose parent firm is in Nigeria, entered the Kenyan market five years ago and has now ventured into financing the local power sector. We remain committed to a continued relationsh­ip with Kenya Power and other key players in the public sector to take on similar or larger projects especially in energy and the infrastruc­ture sector.”

Newspapers in English

Newspapers from Nigeria