Djibouti offers KenGen Sh129m first payment for five-year-old debt
Djibouti's state-owned geothermal agency has offered to pay $1 million to Kenya's KenGen to settle a five-year-old debt. This payment represents a partial recovery of a $2.13 million invoice related to a geothermal drilling contract.
Why it matters
This development marks a potential resolution to a long-standing financial dispute and highlights the regional expansion of Kenya's energy sector expertise.
Djibouti’s State-owned geothermal agency has offered to pay Kenya Electricity Generating Company (KenGen) about Sh129 million ($1 million) as the first instalment towards a five-year-old debt arising from a geothermal drilling contract.
KenGen says in the latest annual report that the Djibouti Office of Geothermal Energy Development (ODDEG) has proposed an initial payment of $1 million against outstanding invoices of $2.13 million (Sh276.03 million), offering a potential breakthrough in the power producer’s debt recovery efforts.
“The company continued to engage ODDEG to recover outstanding invoices amounting to $2.13 million, and ODDEG has acknowledged the debt and has proposed an initial payment of $1 million as the first instalment towards settlement,” said KenGen.
The debt dates back to a 2021 contract valued at $6.45 million, or about Sh710 million at the time, under which KenGen was contracted to drill three geothermal wells at the Galla Le Koma field in Djibouti.
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