This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
Kenya signs KES 220bn solar power deal with US Company. The agreement with SkyPower was signed during the sixth Global Entrepreneurship Summit that ended Sunday at Gigiri, Nairobi. SkyPower is one of the largest developers and operators of utility-scale solar photovoltaic (PV) energy projects.

Our View: This is in line with the goal of president Obama’s ‘Power Africa Initiative’ whose goal is to enable electricity access by adding 30,000 MW of new and cleaner power generation. Kenya will benefit from this in the long run as a cleaner and cheaper electricity will be added to the grid. The renewable energy sector in Kenya is among the most active in Africa. Regarding geothermal power, Kenya is the first African country to seriously tap it, and is currently the continent’s leading producer of geo-energy, with only one other African country, Ethiopia, generating geothermal power.
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