Sessional Paper No. 03 of 1997 on Kenya Government Guarantee of a Loan of Japanese Yen 6,933,000,000 Equivalent to Kshs. 3,466,500,000 from the Overseas Economic Co-operation Fund of Japan to the Kenya Power Company Limited for the Implementation of the Sondu Miriu Hydro-Power Project

Abstract

The Kenya Power Company Limited is a wholly Government-owned company established under the Companies Act (Cap 486 of the Laws of Kenya). With full support of the Government, the Kenya Power Company Limited has successfully negotiated for a loan of Japanese Yen 6,933,000,000 equivalent to Kshs 3,466,500,000 from the Government of Japan. The loan bears an interest rate of 2.3% per annum and carries a 10-year grace period. The loan repayment period will be thirty (30) years. The proceeds of the loan will be used for the implementation of Phase I of the Sondu Miriu Hydro-Power Project whose scope of work will involve civil works and consulting services. Funds for Phase II will be committed during the next financial year. On completion, the project will provide an additional 60MW to the national grid. The project is situated on Sondu-Miriu River in Kisumu District of Nyanza province. It is expected to be completed by 2002.