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AfrElec COMPANY NEWS AfrElec
Kenya Power to start selling
internet to diversify revenues
KENYA KENYA Power and Lighting Company has 2021, driven by a series of reforms that saw
announced plans to sell high-speed internet profit after tax reach KES3.82bn ($33.6mn) for
to businesses in a bird to diversify its revenues the second half of the year, a huge jump from just
and capitalise on growing data usage in the East KES138mn in 1H2020.
Africa country. It will tap into those resources as it looks to
The state electricity distributor, which has take on market leaders Safaricom, Wananchi
been leasing fibre-optic cables attached to its Group (Zuku) and Jamii Telecoms in the battle
transmission lines to internet service providers, for internet customers, initially in urban centres
is set in March to announce details on a package but in the next three to 10 years, also directly to
for corporate customers to buy internet and elec- rural homes.
tricity as a bundle. Kenya Power launched data operations in
“We will leverage on our vast network to tap 2010 and has since laid more than 4,000km of
into the market,” it said in a statement. “We will fibre optic cable. The company has already taken
offer the corporates the option of using our inter- in KES3bn through its internet data market,
net for their primary use or redundancy.” Business Daily reports.
Kenya Power returned to profitability in
Buffalo Coal talks to Investec
about loan restructuring
KENYA BUFFALO Coal Corporation (Buffalo), a min- acceptable solution” for both parties without
ing company based in South Africa’s Kwa-Zulu compromising Buffalo’s ability to develop the
Natal (KZN) province, is currently in talks Balgray project, even on a limited scale.
with international banking, investment and Buffalo owns 100% of Buffalo Coal Dundee
wealth-management services bank Investec (KZN), which has a 70% interest in Zinoju Coal.
about restructuring its outstanding debts. Zinoju, in turn, holds a 100% interest, in South
These negotiations come after Investec had Africa, in the Magdalena bituminous mine, the
initially agreed to defer to February 28 the final Aviemore East anthracite mine, and two anthra-
maturity date of the remaining amount owed – cite projects, namely North Adit and Balgray.
just shy of $2.996mn – before being approached Currently, Buffalo’s highest-priority project –
with a request for restructuring negotiations. which will extend anthracite operations by about
Speaking to Mining Weekly, Buffalo CEO seven years – is Balgray. However, project is put-
Emma Oosthuizen said that the corporation was ting a lot of pressure on Buffalo, as it needs to be
continuing to engage actively with Investec Bank operational before the first quarter of 2023 and
on restructuring the loan. is meant to replace the diminishing reserves of
She further stated that the aim of the talks Aviemore East.
with the bank was to secure an “achievable and
Week 10 10•March•2022 www. NEWSBASE .com P13
