Kenya in deal to source London cash for projects

The Ministry of Energy and Petroleum is seeking to tap London cash for Kenyan power projects.

The ministry has signed a Memorandum of Understanding with the London Stock Exchange (LSE) to promote dual-listings of energy companies in Nairobi and London.

The memorandum was signed by Energy secretary Charles Keter and London Stock Exchange Group (LSE owner) chief executive officer Nikhil Rathi. This is the first agreement signed between them.  

It outlines both parties’ commitment to raising capital for Kenya’s energy industry, through public market equity and debt listings.

The MoU also lays out their plans to assemble key stakeholders to establish an effective dual-listing framework for equity listings in London and Nairobi.

The signing follows an event in Nairobi on May 11 to celebrate the launch of London Stock Exchange Group’s inaugural Companies to Inspire Africa report.
Mr Keter said Kenya’s growing energy demand and need to develop world-class energy infrastructure requires new sources of capital.

“Our partnership with London Stock Exchange Group is driven by our realisation that energy infrastructure projects are very capital intensive and mobilisation of capital is critical to providing clean, sustainable, affordable, competitive and secure energy required for Kenya to improve its industrial performance,” he said.

“We believe that this partnership will be able to help us to mobilise the capital required to accelerate the pace of energy infrastructure development in Kenya, which will, in turn, drive our country to achieve its full industrial potential.”