KenGen expects to conclude $170m rights issue by year-end
By George Obulutsa
He said the power producer was waiting for the state, which holds a 70 percent stake, to decide how it will raise funds and hoped a decision would be made by August.
"Between now and August, it's likely that we will have got government approval of what it will contribute to the rights issue, which will then enable us to start finalising our information memorandum for approval," Mugo told Reuters in an interview.
He expected the rights issue to be completed by the end of the year.
By the end of this year, the utility will add a total of 327 MW from geothermal and wind power, Mugo said.
The government has said the Eurobond will act as a bellwether for Kenyan firms seeking to access funds on international markets.
"I don't think we are ready for an international bond as yet. It might be one of the options we will be looking after we restructure our balance sheet," Mugo said.
That will largely involve replacing diesel generation, which costs about $0.35 per KWh. Geothermal is the cheapest alternative, costing about $0.08 to $0.09 per KWh, the government has said.
($1 = 87.7500 Kenyan Shillings)