With a challenging economic outlook ahead, international investment into East Africa and its people is more important than ever. The energy sector is primed for such investment. In fact, it has been a focus sector for many years, as evident in the ambitious public targets and projects of countries in the region such as Kenya’s Big 4 Agenda and Vision 2030, Ethiopia’s Growth and Transformation Plan II, the development of the South Sudanese National Electricity Bill and the Ruizizi III hydroelectric power project which will provide power to Burundi, Eastern DRC and Rwanda.
Our finance and projects lawyers advise on all aspects of financing. We share knowledge and skills in deals involving: lending and borrowing, debt securities, derivatives, funds, portfolios as well as energy, infrastructure, transport matters and other projects.
IKM’s Finance practice, headed by Anne Kinyanjui, has vast experience and industry insight in the specialist areas of finance, enabling us to advise clients from diverse business sectors. Our lawyers act for over 20 commercial banks, a number of which are the top-tier financial institutions in Kenya.
IKM’s Projects practice, headed by Beatrice Nyabira, has substantial experience across a diverse band of undertakings that include public-private partnerships (PPPs), energy (geothermal, hydropower, wind, solar and coal), and social infrastructure (health, housing and transport). Our knowledge base from working with clients across the public and private sectors means that we have a comprehensive understanding of each of the stakeholder’s concerns and are able to structure transactions in a manner that specifically addresses their needs.
Experience has included advising:
- OPIC jointly with DLA Piper, in connection with facilities to be granted to Acorn Holdings Limited which is a leading real estate developer in Kenya for financing 10 mixed-use development projects.
- Stanbic Bank Kenya Limited in a transaction involving real estate financing.
- A top-tier commercial bank in Kenya in the financing of a used aircraft which required a high degree of due diligence over the aircraft and security documentation proceedings.
- East African Breweries Limited as the borrower in connection with the financing of its new brewery in Kisumu.
- Radiant Energy Limited on the financing of two 40 MW solar power projects.
- CDC Group Plc, the lenders, on the financing of a 40 MW solar project in Malindi, Kenya.
- The Kenyan government on the USD500 million procurement of medical equipment for 94 hospitals in all 47 counties in Kenya through a managed equipment services arrangement.
- The sponsors of a USD1.8 billion energy project on the development of a 100 MW wind power plant in Kajiado, Kenya.
- A client in connection with its proposed investments in Mombasa port, Lamu port and the new Lamu industrial city.
- A consortium of investors in connection with a proposed primary healthcare project to be piloted in Makueni County before being scaled-up to all 47 counties in the country using a privately-initiated investment proposal model.
- Ranked Band 1 in Banking & Finance (Chambers & Partners 2019)
- Ranked Tier 1 in Banking & Finance (The Legal 500 2019)
- Ranked Tier 1 in Finance & Corporate (IFLR1000 2019)
- Ranked Tier 1 in Projects & Privatization (The Legal 500 2019)
- Ranked Band 2 in Projects & Energy (Chambers & Partners 2019)
- Ranked in Projects & Finance (IFLR1000)
Although the development of road infrastructure in many countries has and continues to be funded through collection of tolls, tolling of roads generally remains unpopular with the public and forms part of an ongoing political and public debate around the world.
In recent months, the world has changed dramatically. An exceptional few are working remotely or in controlled working environments, while many are not working at all. Campaigns, events, construction, and all other manner of projects have been scaled down or otherwise put on hold.
In order to realise Kenya’s Vision 2030 goals for sustainable and affordable energy, the government has been offering incentives to encourage investment in the renewable energy space. One of the most effective incentives in the government’s toolbox is the provision of tax exemptions which have the dual advantage of encouraging investment and possibly lowering electricity tariffs payable by consumers.
The outbreak of COVID-19 has undeniably affected both borrowers and lenders negatively, with the exception of a few players such as those in medical supplies, basic food stuffs and certain technology, e-commerce and entertainment providers.