Kenya Electricity Generating Co. (KEGC), the East African nation’s biggest power producer, rose for a third day as it boosted the installed capacity of hydropower, reducing reliance on expensive sources in energy production.
The shares jumped as much as 2.9 percent to 9 shillings, the highest closing price since Nov. 25, and traded 1.1 percent stronger at 8.85 shillings by 12:48 p.m. in Nairobi. The stock’s three-day run of gains is its longest winning streak since April 24, according to data compiled by Bloomberg.
The Kindaruma hydropower station, located 170 kilometers (106 miles) northeast of the capital Nairobi, added a third generating unit with 24 megawatts of capacity, KenGen said today. Plans to upgrade the two other units to 24 megawatts from 20 megwatts will take output to 72 megawatts, it said.
“When hydroelectric power declines, the country is forced to use more expensive diesel,” Rufus Mwanyasi, head trader with Canaan Capital Ltd. based in Nairobi, said by phone. “With this new installation that may shift the balance back to hydro.”
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