Bloomberg News

Kenya Electricity Extends Gains on Better Generation Outlook

January 03, 2012

(Updates with closing share price in second paragraph.)

Jan. 3 (Bloomberg) -- Kenya Electricity Generating Co., the country’s biggest power producer, rose for a second day on speculation heavy rains last month will help the company increase electricity output.

The shares jumped 4.1 percent to 8.80 shillings as of the 3:00 p.m. close in the capital, Nairobi, their highest in almost a month.

“There is improved stability in the generation sector because there has been enough rain that the dams are full,” Caleb Mutai, an analyst at Nairobi-based Tsavo Securities Ltd., said in a phone interview today.

Heavy rains in December fell in most parts of Kenya, including areas in which the main hydro-power generation dams are located, according to the east African nation’s meteorological department. Hydroelectric plants provide about 65 percent of Kenya’s power generation, according to the company’s website.

--Editors: James Kraus, Stephen Kirkland

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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