DIVERSIFICATION

KenGen revives plans to generate power from Nairobi waste

In 2012, it sanctioned a feasibility study on the project but failed to actualize

In Summary
  • Under the deal, the NMS is expected to  avail land near  or Dandora dumpsite in addition to solid waste.
  • Nairobi generates about 3,000 tonnes of household  and industrial waste per day, worsening the solid waste management in the city. 
Ken Gen Managing Director and CEO, Rebecca Miano
FILE Ken Gen Managing Director and CEO, Rebecca Miano
Image: Enos Teche

Power producer, KenGen has revived plans to generate electricity from  Nairobi's garbage as part of its green initiative. 

Speaking at a virtual forum with journalist, KenGen managing director Rebecca Miano said the they would soon close the request for feasibility studies before settling on a suitable applicant. 

''This is part of our diversification strategy and effort to conserve the environment. We signed this deal with the Nairobi Metropolitan Services in August,'' Miano said. 

 

NMS is expected to  avail land near or at the Dandora dumpsite in addition to solid waste, while the power generator will finance, develop, and operate the power plant.

This is expected to open new income streams both for KenGen and the city county, add to the country’s renewable energy pool and minimise garbage which is a constant eyesore in Nairobi.

Nairobi generates about 3,000 tonnes of household  and industrial waste daily. 

This is not the first time the company is floating the idea of generating power from garbage. In 2012, it sanctioned a feasibility study on the project but this failed to actualise. 

General Electric ha  also  in the past held discussions with City Hall on a similar joint venture.

The project would see Nairobi join cities like Durban in South Africa that generates large-scale electricity from garbage.

Currently, KenGen’s generation capacity is 1,803 MW comprising 818MW hydro, 706MW geothermal; 253.5MW thermal and 25.5MW wind, accounting for a huge pie of Kenya's total installed electricity generation capacity of 2,763 MW.

 

The firm plans to more than double the country's electricity generating capacity to 4,270 MW by 2025.

KenGen recently broke ground for Olkaria I unit 6, which will bring on board an additional 83.3MW in 2021.

Meanwhile, the listed power producer is planning to set up two subsidiaries in a bid to diversify revenue streams. 

The company's MD revealed that it is going to set up KenGen B and C to undertake consultancy and drilling services.

Last month, the company won Sh5.8 billion contract to drill 12 geothermal wells in Ethiopia.

The contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO) PLC will also include installing a water supply system and equipment.

KenGen will supply drilling materials and also provide operation and maintenance services for both the drilling equipment and the water supply system.

The form's total revenue grew 1.5 per cent fromSh45.30 billion in 2018 to Sh45.97billion.

Other income increased from Sh275 million to Sh619 million, mainly as a result of consultancy services, insurance compensation and tax refund.

The firm's  asset base grew from Sh379 billion in 2018 to Sh401 billion last year; with the income  increasing almost three folds to Sh619 million compared to Sh275 million the previous year. 

 

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