The African Export-Import Bank (Afreximbank) has provided a $40 million term loan funding to the Kenya Power and Lighting Company (KPLC) to enable the company roll out upgrades and implement installations to enhance its transmission and distribution capacity.
Afreximbank announced in Cairo today that the facility, part of a $190 million club deal concluded with Standard Chartered Bank London, was aimed at supporting KPLC to finance its general capital expenditure projects throughout Kenya over the next seven years.
“Recognising the trade enhancing role of power infrastructure and the impact on Kenya’s overall economic development, Afreximbank is very pleased at the opportunity to support KPLC’s effort to increase the access of Kenyan businesses to stable power supply,” said Jean-Louis Ekra, President of Afreximbank.
“Transactions like this enable us to add value to Africa by leveraging our relationship with other major lenders in order to facilitate the flow of funds into the continent to support the growth of the key sectors of the economy,” he said, noting that KPLC’s plan to increase access to power in Kenya would have a direct impact on the overall economic development of the region.
KPLC, a public company, owns and operates most of the electricity transmission and distribution systems in Kenya and sells electricity to more than 2.6 million customers. The company is also a significant contributor to the East African Power Pool, which seeks to produce the least costly power while increasing its efficiency, availability and reliability as well as developing a regional power market that provides competition.
Manal Mounir Hendy