After SGR, Kenya’s next Sh900bn debt trap for power project

What you need to know:

  • In 2017, China Power Global signed a $2 billion (Sh200 billion) deal with Amu Power for the coal plant, while the Industrial Commercial Bank of China agreed to finance the project for $1.2 billion (Sh120 billion).
  • Kenyan taxpayer could be forced to pay at least Sh36 billion in annual capacity charges under the existing 25-year PPA, even if no power is generated at the plant.

  • The new report says, the project has been overtaken by events, particularly lower-than-projected demand growth, lower forecasted generation from Lamu, and higher anticipated costs for imported coal.

Days after the Nation exclusively reported that Kenya signed a lopsided multibillion-shilling deal for the operation of the Standard Gauge Railway, an American think-tank is warning that the taxpayer is being forced into another Sh900 billion debt trap for the Lamu coal power project.

Welcome!

You're all set to enjoy unlimited Prime content.