KenGen Limited is accelerating its renewable power generation investment with a planned 45 megawatt (MW) solar power plant.
The power generator is seeking 5.7 billion shillings from multilateral lenders to finance the project which will be located in proximity to its Hydropower plants in Embu.
Under its medium-term geothermal plan to 2020, KenGen is seeking to connect 631MW to the national grid.
The first of the geothermal power plants, the 168MW Olkaria V, is expected to be commissioned in 1st July 2019.
“We expect accelerated revenue growth above our 15.8 percent projected growth by 2022, buoyed by the additional capacity enhancement from this solar plant (completion within 14 months),” said experts from Genghis Capital.
“KenGen is one of our key growth stock recommendation. We recommend a BUY on KenGen with a target price of 9.84 shillings, a 29.4% upside potential against the current market price (6.95 shillings),” Genghis added.
In other market news, secondary market turnover declined 9.17 percent to 2.08 billion shillings in Tuesday’s session with trades on the medium term space dominating activity.
“We still expect demand to be heavy on the short and medium term tenors with the primary bond sale of a longer maturity ongoing,” said Genghis.
The shilling lost ground against the USD in Tuesday’s session closing at 100.93 on improved money market liquidity.