Meeting Kenya’s growing power demands
Kenya is the most industrially developed country in East Africa today. However, it has struggled to meet the increased demand for electricity, hampering the country’s prospects for continued growth.
The largest share of Kenya’s electricity comes from hydroelectric stations, which are dependent on favourable weather conditions. In response to acute power shortages triggered by unpredicatable rainfall and inadequate planning, the Tsavo Power Company (‘Tsavo’) was established in 2001 to provide a thermal-based solution to the sector.
Tsavo operates a 74MW medium-speed diesel plant in Mombasa. Actis’ portfolio company Globeleq, which develops, owns and operates power generation facilities across the emerging markets – has a 30% stake in Tsavo, which has a 20-year power purchase agreement with the Kenya Power and Lighting Company.
Fully compliant with World Bank environmental and emissions guidelines, the plant continues to perform well, helped by a switch in its fuel supply to Heavy Fuel Oil, which has improved its output efficiency and reduced ongoing maintenance requirements.