Nairobi, Kenya, July 22, 2013--IFC,
a member of the World Bank Group, today launched a new program with Kenya
Power to assist the company in lowering its costs and better serve customers
while reducing its environmental impact.
The new program follows a recent agreement
between IFC and Kenya Power to reduce operational inefficiencies which
are costly and harmful to the environment. Energy losses within the Kenya
Power network were more than 18 percent in fiscal year 2013. The rate compares
well to regional utility companies, but less favorably against a broader
sample of international companies. The company sees a long-term opportunity
to bring losses down to between 8-10 percent, on par with peer companies
in South Africa and Western Europe.
IFC will work with Kenya Power to build its
capacity to identify, plan and mobilize finance for investments that will
increase the efficiency of electricity distribution in Kenya and help the
company manage future losses.
Dr. Ben Chumo, Kenya Power’s Acting Managing
Director and Chief Executive Officer said, “Kenya Power is committed to
managing operating costs which will keep electricity rates affordable and
allow us to better serve our more than 2.3 million customers across Kenya.
IFC is assisting us to identify and undertake the most cost-effective measures
to help make this a reality.”
Oumar Seydi, IFC Director for Eastern and
Southern Africa, said, “IFC has set a strategic priority on helping companies
find solutions that reduce their impact on climate change. In Sub-Saharan
Africa, operational inefficiencies in utilities reduce competitiveness,
slow the pace of expansion, and create added stress on the environment.
Our work with Kenya Power aims to address these issues.”
Operational inefficiencies in the electricity
sector in Sub-Saharan Africa are estimated at more than $3 billion annually.
IFC estimates that improvements in Kenya Power’s efficiency will help
it avoid procuring additional thermal power, and consequently reduce greenhouse
gas emissions of more than 23,000 tons every year.
Managing and reducing losses is crucial at
a time when the electricity network and customer base is expanding rapidly
IFC’s Utility Efficiency in Africa Program
is working to reduce the amount of greenhouse gas emissions and energy
hours used per year, mobilize investments which promote utility efficiency,
and generate substantial cost savings to utility clients, which can be
passed on to consumers.
In Kenya, the program is run in partnership
with Austria, Denmark, the Global Environmental Facility, Japan, and the
Public-Private Infrastructure Advisory Facility.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, mobilizing capital in international financial markets, and
providing advisory services to businesses and governments. In FY12, our
investments reached an all-time high of more than $20 billion, leveraging
the power of the private sector to create jobs, spark innovation, and tackle
the world’s most pressing development challenges. For more information,