This archive report was first published on 29 November 2019.
On November 28, 2019, Centum Investment announced a Ksh.2.1 billion loss provision for its funding of the Amu Power coal plant, a multi-billion shillings project facing significant challenges.
The provision, made in anticipation of potential losses, comes just days after the African Development Bank (AfDB) and the European Investment Bank (EIB) withdrew their support for the project, citing changes in the investment landscape.
Despite the project's environmental impact assessment license being revoked in June, Centum's Chief Executive Officer, James Mworia, remains optimistic about the project's prospects, stating, 'The provision does not in any way alter the prospects of Amu Power. As responsible investors, we will do our best to pursue a return on investment.'
The 1050 megawatt Lamu coal plant has faced resistance from civil society groups, who view the project as an environmental hazard.
Centum aims to clear outstanding project debt by the end of June 2020, having posted a net profit growth of 226% to Ksh.6.8 billion for the first half of the 2020 financial year.
