The African Development Bank (AfDB Bank) has withdrawn a multi-billion shilling funding for a 35-megawatt geothermal power plant in Menengai, Nakuru.
This withdrawal follows the acquisition of the power company behind the plant by former late president Daniel Moi’s son Gideon.
Gideon bought a majority stake in a multi-billion company owned by steel tycoon Narendra Raval. Initially, Mr. Raval had acquired the company from the Moi family. He had bought it through an entity called Sosian Energy in 2017.
Raval admitted that he sold the company back to Moi, but at a lower price than he had bought it. “I sold back my stake in Sosian at a lower price than I had bought it. Gideon Moi is the majority owner,” Raval said.
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Apparently, the AfDB Bank has demanded change of ownership before it can offer funding to Sosian Menengai Geothermal Power.
Sosian Menengai is one of the three firms that the government through the Geothermal Development awarded exclusive rights to set up a steam plant under a build-own-operate model.
“The bank is currently engaged on the Quantum Power East Africa (QPEA) project only. It has previously been engaged on the Sosian project as well but it requires a change in shareholding before it can engage further,” a source privy to the matter was quoted by local business newspaper, Business Daily.
“The delays have primarily been due to negotiation of the finance documents between the lenders and sponsor, closure of certain bankability issues with the government agencies and change in the sponsor of the project.”
