Kenya Electricity Extends Gains on Improved Generation Outlook

Jan. 3 (Bloomberg) -- Kenya Electricity Generating Co. (KEGC), the country’s biggest power producer, rose for a second day on expectations it will generate more electricity in coming months.

The stock jumped as much as 6.5 percent to 9 shillings and traded 3.6 percent higher at 8.75 shillings as of 12:52 a.m. in the capital, Nairobi.

“There is improved stability in the generation sector because there has been enough rain that the dams are full,” Caleb Mutai, an analyst at Nairobi-based Tsavo Securities Ltd., said in a phone interview today.

In December there were heavy rains in most parts of Kenya including areas in which the main hydro-power generation dams are located, according to the east African nation’s meteorological department.

Hydroelectric plants account for about 65 percent of the country’s total power generation, according to the company’s website.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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