KenGen is set to get a boost in the Nairobi Securities Exchange after its new deal to drill geothermal wells in Ethiopia alongside Chinese company Shandong Kerui Group.
The project, signed by KenGen CEO Rebecca Miano involves drilling, as well as rig operation and maintenance of geothermal wells at Aluto, Ethiopia under the Ethiopian Electric Power (EEP).
It is financed by the World Bank through a $76.8 million (Sh7.6 billion) loan to the Ethiopian government.
KenGen will be supplying about 30 percent of the component of phase II, which translates to about $6.2 million (Sh620 million).
Ms Miano said that the deal will help to deepen KenGen’s revenue diversification strategy.
“We are delighted to announce that our diversification strategy is finally paying dividend. This is good news for KenGen, our shareholders and indeed for Kenya as a country,” she said.