It’s time to scrap Lamu coal plant

An American think tank claims that power from the Lamu coal plant could cost up to 10 times the predicted 7.2 US cents per KWh  (see P15).

Originally the 1,045 MW plant was supposed to exploit coal from the Mui Basin in Ukambani but it switched to using South African coal which will have to be imported for the next 25 years.

Kenya signed a loan facility with China in 2016 for part of the US$2 billion costs but the finance is not yet complete. Standard Bank retracted a $300 million facility in 2016 and General Electric allegedly is now nervous about contributing $400 million of new turbines for the refurbished Chinese plant.

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