April 30 (Bloomberg) -- Kenya Electricity Generating Co., the East African nation’s largest power producer, headed for its biggest gain in five years on bets rainfall across the country will increase the amount of energy generated.
The stock of KenGen, as the company is known, gained by the maximum daily limit of 10 percent, the most on a closing basis since April 2007, to 8.80 shillings by 1:18 p.m. in Nairobi.
“The rally is entirely coincident with the rain,” Aly Khan Satchu, a Nairobi-based independent stock market analyst, said in a telephone interview today. “The rains have got people thinking there is a wider margin to be made as they can reduce the expensive portion of their energy make-up.”
Hydroelectric plants provide about 65 percent of KenGen’s power generation, according to the company’s website.
“Heavy rains being experienced in different parts of the country have resulted into flash floods and lightning leading to deaths, displacements, massive destruction on property and infrastructure, destruction of farms, among other impacts,” the Kenya Red Cross Society said April 27 on a statement on its website.
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com.
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org