Shareholders of the Kenya Electricity Generating Company have approved a plan to raise Sh30 billion to finance power projects in 2014. In an Annual General Meeting held yesterday, shareholders gave nod to the directors' recommendation to sell additional 2.2 billion shares to existing shareholders through a rights issue. GROWTH PLAN "KenGen will grow to three times its size over the next three years. It is a necessity that if you take debt, then you must ensure that you have adequate equity," said KenGen acting managing director Simon Ngure at the meeting held in Nairobi . The rights issue is expected to be completed by June, 2014. The shares will be issued at the ratio of one-to-one, doubling the current share capital base. Shareholders also approved creation of additional 7 billion ordinary shares of Sh2.50 each, which will raise its share capital to Sh25 billion from Sh5.5 billion. The issuance of 2.2 billion new shares that was approved at the AGM is the first tranche in the capital raising project that will see the firm get Sh467 billion to fund new projects over the next four years. At the AGM that saw two directors and the chairman retire from the board, the company's top brass was put to task by shareholders to explain strategies that have been put in place to ensure that the stock fetches more value at the bourse. KenGen share has been steady trading at a mean of Sh15 in the last one month. The electricity producer posted a 86 per cent growth in net profits to Sh5.2 billion during the year to June 2013 , helped by a Sh1 billion tax credit the company received for investment in four power generating plants completed during the period. According to Mr Ngure , the company is targeting to grow its installed electricity generating capacity to 3,000 megawatts by 2018 up from 1,239 megawatts currently which has increased from a total of 1,231 megawatts it had last year.
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