Kenya’s US$2bn coal power plant to commence construction in October

Construction of a multimillion coal power plant in Lamu, Kenya will commence in October, Amu Power a consortium of Centum and Gulf Energy, has confirmed.

Gulf Energy MD, Francis Njogu, said the new coal power plant, to be built in Manda area in Lamu County, will be the biggest private-sector-led infrastructure project in East and Central Africa and it will initiate operations within 21 months after construction begins.

The development includes building the power plant, a jetty and a housing complex that will house 300 workers. The company will build, own and operate the plant for 25 years. The project will provide employment and support development of heavy industries including motor vehicle assembly, steel and iron smelting, food processing among others.

The coal power plant will rely on coal imports from South Africa at the rate of US$50 a tonne until coal production from Mui Basin in Kitui county starts.

The 960-MW Lamu coal-fired power plant is part of the government’s plans to generate 1,920 MW of electricity from coal by December 2017 as part of its 5,000-plus MW plan.