To find risks, challenges, and issues facing KenGen
- According to a study done by The World Bank and the University of Nairobi, one major risk faced by KenGen is the hydrology risk.
- The company faces hydrological conditions that affect its revenue because the conditions adversely affect the company's generating capacity.
- The major cause of this risk is the shortage of rains in areas of generation.
- The company is mitigating the risk by diversifying its hydro plants by investing in wind, geothermal, and coal.
- Regulatory risk is another major risk faced by KenGen. The Energy Regulatory Commission is the body in charge of laws and regulation of the energy sector.
- Any change in regulation and laws from ERC "can expose the company to liability and
result in increased costs such as water levies, power project cost overruns, and other costs
incurred in power project construction that may not be recoverable from power Purchase
Proposed next steps:
You need to be the project owner to select a next step.
Our initial research revealed that there are more challenges and risks faced by KenGen. Therefore, we propose further research to identify 5 additional main issues the company is currently facing, or there are good chances it will face in the future.
Alternatively, we could provide 3-5 general issues and challenges faced by the energy sector in Kenya.