Kenya Power has cleared a $350 million commercial facility that it raised a decade ago, marking the completion of a long running debt repayment programme. The facility was initially secured in 2016, and it was used to refinance existing bank debt rather than fund a specific electricity project.
Standard Chartered arranged the 10 year dollar facility as part of a wider $500 million refinancing package. The package also included a KSh15.18 billion local currency facility, and the financing was intended to reduce borrowing costs while extending debt maturities.
The refinancing also sought to improve Kenya Power’s liquidity. As a result, the company expected to retain more of its internal cash for future capital expenditure.
The company gradually reduced the outstanding dollar balance before clearing the facility. The balance fell from about KSh23.7 billion in 2023 to KSh14.17 billion in 2024. It then dropped further to KSh7.07 billion in June 2025, before the final instalment was cleared in the year ended June 2026.
The debt clearance comes as Kenya Power moves towards greater use of local currency financing. The company’s current strategy includes refinancing commercial dollar debt into shilling-denominated funding, while also combining operating cash flow with debt to finance investments.
This approach is also intended to reduce the company’s exposure to foreign exchange movements. Kenya Power’s 2023/24 to 2027/28 strategic plan identifies the conversion of commercial dollar loans into shilling funding as one way of reducing that exposure.
At the same time, the power utility is exploring other sources of funding. These include climate finance, joint ventures and public-private partnerships, which could support future investments without relying solely on commercial borrowing.
The company is also continuing to reduce its debt while investing in its operations. Its latest results show capital expenditure of KSh28 billion, indicating that debt reduction is taking place alongside spending on infrastructure and other investments.
Kenya Power’s completion of the dollar facility therefore marks more than the end of a 10-year loan. It also comes as the company seeks to reshape its financing structure, reduce foreign exchange exposure and create more room for future capital investment.