|
|
 Kenya Electricity Generating Company Ltd. |
Managers:
- Mr. Edwin Wasunna, Managing Director
- Mr. Mike Njeru, Communications Manager
Contact
Postal Address: P.O.Box 47936, Nairobi, Kenya.
Visiting Address:
Stima Plaza, Kolobot Rd, Parklands. Nairobi.
Tel : +254 (2) 248833
Fax : +254 (2) 248848
E-mail : kengen@africaonline.co.ke
Website : www.africaonline.co.ke/kengen
|
| Company Profile |
Kenya Electricity Generating Co. Ltd (KenGen) was formerly known as KPC (Kenya Power Company Ltd.). KenGen is a 100% government owned company founded in 1954 ir order to purchase power in bulk form Uganda as well as to develop geothermal resources and other power generating facilities in Kenya.
The Kenyan government started the reorganization of the power sector in 1994. Its purpose was to facilitate the sector's efficient operation and to obtain the private sector participation. The reorganization process separated generation function from transmission and distribution.
| ACTIVITIES |
The main activity of KenGen is the generation and sale of electricity to the authorized disttibutor, The Kenya Power and Lighting Company Distributor (KPLC).
The company also purchases energy from the Uganda Electricity Board to supplement its production.
| PERFORMANCE |
KenGen sells electricity to the Kenya Power & Lighting Company Ltd. (KPLC) in bulk and at cost. KPLC is the authorized distributor of electricity in the Kenya. The sale of electricity between KenGen and KPLC is based on an ascertained cost formula.
KenGen sold 3,348 Mill KW/hrs during 1998 compared to 3,481 Mill KW/hrs sold in 1997. This meant a decline of 4% attributed to clearance of a backlog of planned maintenance for major generation stations.
 Electricity Units Sent out from the Power Station by Source 1997/98 |
Source: KenGen Annual Report 1998
| RESTRUCTURING OF THE POWER SECTOR |
Commercial generation of electricity was liberalized, leading to licensing of Independent Power Producers (IPPs). An Electricity Regulatory Board was also established in 1997 under the Electric Power Act to inter alia regulate electricity tariffs and license power producers and distributors.
Under the restructuring of the power sector program, all power generation assets and related liabilities belonging to other power generating companies such as TRDC, KPLC, TARDA and KVDA are to be transferred to KenGen.
Source: KenGen Annual Report 1998
| COMPUTERIZATION |
IN 1998 KenGen started the process of setting up its own computer center. Major systems such as integrated financial systems, integrated logistic systems and integrated human resources systems were customized according to KenGen requirements.
KenGen also commenced the implementation of a project to ensure that all its operations are year 2000 compliant by mid 1999. |
| OPERATIONS |
As a result of El Niño weather phenomenon, high rainfall was recorded in Kenya. For instance, Ndula power station recorded the highest annual rainfal (2,096 mm), whereas Turkwel power station recorded the lowest annual rainfall (910.6 mm).
Through 1997-98 major overhauls were carried in some of the largest power stations such as Kindaruma, Gitaru, Olkaria or Kipevu, to mention but a few.
| PERSONNEL |
| Category of staff as of June 30th 1998 |
| Job Category |
|
| Technical |
966 |
| % of total staff |
67% |
| Non Technical |
472 |
| % of total staff |
33% |
| Staff grouping |
409 |
| Management |
28% |
| % of total staff |
1029 |
| Union |
|
| % of total staff |
72% |
Source: KenGen Annual Report 1998
| DEVELOPMENT |
| Generation Planning |
The least cost power development plan was updated during the year (June 1997- June 1998). In the 5 year investment program, the following stations were included: Kipevu I, 75 MW; Gitaru Unit 3, 80 MW; Olkaria II, 64 MW; Sondu Miriu, 60 MW.
| Kipevu I - 75 MW Diesel Project |
In December 1997 the project was awarded to a consortium of Mitsubishi Heavy Industries and Mitsubishi Corporation. At the end o the year all the 6 diesel engines had been manufactured and tested. Assembly of the generators was in progress. The project is expected to be on line by December 1999.
| Gitaru 3rd Unit - 80 MW |
The installation of an 80 mw Unit No. I at Gitaru Power station will provide additional peaking capacity to improve the reliability of supplies from this major power station. The contract for installation of the unit was awarded to the consortium of Siemen-Voith of Germany (Dec. 1997). Manufacture of the generation equipment is in progress and the project is expected to be on line by December 1999.
| Olkaria II, 64 MW Power Project |
The project is proposed to be financed by International Development Association (IDA), European Investment Bank (EIB), Kreditanstalt fur Weideraufbau (KfW), and the Company under the Energy Sector Reform and Power Development Project. The project is expected to be on line by September 2001.
| Other projects |
There are a number of projects under way such as Geothermal Resources Development, Sondu/Miriu Hydro Power Project, which is expected to be on line in October 202, 108 W Ewaso Ngiro Multipurpose Project, Masinga Dam and the redevelopment of Tana Power Station, and the Mutonga/Low Grand Falls.
| FUTURE PROSPECTS |
The company currently manages about 90% of total electric power generation in Kenya. With the commissioning of the new projects and finalization of the Power Purchase Agreement, KenGen will be able to improve and consolidate its market leadership in power generation. |
|
© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Kenya published in Forbes Global Magazine.
November 29th 1999 Issue.
Developed by AgenciaE.Tv |
|
|
|
| |
|
|
|
|
