Sessional Paper No. 04 of 1983 on Kenya Government Guarantee of Moneys lent to the Kenya Power Company Limited by Commonwealth Development Corporation to finance the Construction of Olkaria Geothermal Power expansion Project

Abstract

in accordance with the provisions of the guarantee (loans) act (Cap 461), the following information is laid before the National Assembly for consideration and approval. the Government proposes to guarantee a loan of sterling pounds five Million, Nine Hundred Thousand (stg £5,900,000) which is equivalent to Kenya Shillings one hundred and nineteen million, seven Hundred and Seventy thousand (119,770,000) made to the Kenya Power Company Limited by Commonwealth Development Corporation of the United Kingdom. the loan will bear interest at the rate of 10.5 percent per annum and will be repayable over a period of five years moratorium on repayments. The borrower (KPC) will also pay a commitment fee of 0.75% on the total amount of the loan and a further nominal negotiation fee. this loan is required to finance the expansion of the generation station at Olkaria Geothermal Power Station which is being developed by the Kenya Power Company Limited. The Kenya Power Company is a wholly government owned parastatal