Players in the extractives, energy and infrastructure sectors around the world have for a long time been required to ensure that they run sustainable businesses in order to attract funding from prospective investors. ESG assessments have been a prominent tool for investors and financiers in these sectors, with project companies and their sponsors being required to be good stewards of the environment and to have the social buy in of the project affected communities. This focus on ESG is not surprising, given the long-term and capital-intensive nature of infrastructure projects. More importantly, these projects heavily affect natural resources and surrounding communities and therefore the standard of caution by investors has to be many notches higher. As the adage goes, with great power comes great responsibility.
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)
The recently published Central Bank of Kenya (Amendment) Bill, 2021 (the “Bill”) is the latest attempt by parliament to regulate the previously unregulated digital lenders. In 2020, there were two different attempts to amend the law to give the Central Bank of Kenya (CBK) power to regulate digital lenders. The Bill defines "digital credit" as a credit facility or arrangement where money is lent or borrowed through a digital channel, that is, the internet, mobile devices, computer devices, applications and any other digital systems as may be prescribed by CBK.
Having concluded in Part 1 of this two part series, that the power sector challenges are like a tangled ball of wool, allow us to pick some threads out and take a closer look at some of the pieces of the puzzle.
Having followed with great interest the ongoing debate on the power sector, fuelled by the thought-provoking articles written by Edward Njoroge and Jaindi Kisero recently, we would like to join the fray with some points to ponder.