This archive report was first published on 28 December 2021.
Kenya Power has secured a Sh. 6.75 billion loan from NCBA Bank Group, marking a significant milestone in the company's efforts to restructure its debt.
According to the company's annual report for the financial year that ended June 2021, the loan has a term of 12 years and a repayment moratorium of 36 months from September 2020.
Kenya Power took the loan at an interest rate of nine percent, comprising the Central Bank Rate of seven percent plus a two percent margin.
The new loan is the second major loan facility the power provider has taken from a local lender, with Kenya Power also owing Equity Bank Sh. 4 billion.
Kenya Power has been working to renegotiate its debt in a bid to reduce interest expenses and boost its cash flows, with the company inviting expressions of interest (EOI) for the commercial debt refinancing in April 2021.
