Kenya Electricity Generating Company Limited (KenGen) has announced ambitious plans to venture into the local manufacturing of transformers and motors, signaling a strategic move to diversify its revenue streams. Currently a key player in the energy sector with a primary focus on electricity sales to Kenya Power, KenGen aims to establish a manufacturing plant for distribution transformers and power motors. The company, listed on the Nairobi Securities Exchange (NSE), has issued an Expression of Interest (EoI) for a feasibility study to assess the viability of this new business endeavor.
The proposed manufacturing plant is envisioned not only to cater to KenGen's internal needs but also to contribute to the wider market by selling these crucial components. To achieve this goal, KenGen is actively seeking partnerships with manufacturers specializing in distribution transformers and power motors. In a statement, KenGen emphasized its commitment to supporting local manufacturing, envisioning it as a catalyst to transform Kenya into a competitive industrial hub, fostering economic strength and job creation.
The power sector in Kenya, particularly the demand for transformers, has witnessed exponential growth. Kenya Power, the largest consumer of transformers in the country, has faced challenges in meeting the rising demand as it expands its network. With over 55,000 transformers installed nationwide by 2017, the utility giant continually engages in fierce tender competitions, with contracts often reaching billions of shillings. KenGen's entry into local manufacturing could potentially address the supply gap and contribute to the resilience of the energy infrastructure.
