AFDB Withdraws Financial Support to Power Plant Over Moi’s Ownership.

The African Development Bank, a pan-African financial institution, had withdrawn financial support for a geothermal power plant citing the ownership of the Moi family as the main concern.

Sosian Menengai Geothermal plant was awarded exclusive rights by the state to set up a steam plant under a build own operate model,

Gideon Moi has acquired a majority stake in the power plant through Narendra Raval, a tycoon who gained his wealth in the steel and cement industry.

Mr.Raval who was hoping to enter the energy sector had delayed the delivery of the steam plant despite having the contract to do so for eight years. He sold it back to the Moi family.

It is not known why the African Development Bank is wary of the Moi family despite the family being wealthy and having its footprints in multiple sectors of the economy such as construction, agriculture, banking, aviation, real estate, and education.

Kenya being part of the Paris agreement has dedicated itself to using cleaner and greener sources of energy. Geothermal, wind, and solar energy plants have increased with the assistance of the private sector the government hopes to reduce the price of electricity through the increase of power producers.

Kenya Power and Lighting Company, the state-owned power distributor, provided that independent power producers(IPPs) be handed a 20-year power purchase agreement (PPA) that reassures investors who want to engage in public-private partnerships.

The state has offered three firms in 2014 contracts that work on geothermal plants and operate the power plants for 25 years.

The geothermal development company has set up a gathering system in collaboration with the Kenya  electricity transmission company (KETRACO) which has a substation  that will have the capacity to transmit electricity from the three power plants

Under the arrangement between the public and private sectors, the Geothermal development company took an upfront risk and then invited private entities.