The proposed 1000 MW coal power plant will be set up in Manda Bay in Lamu County. The plant is part of the Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) Corridor projects.
The project will is expected to cost US$2 billion (200 billion Shillings). The major financing of US$1.2 billion has been provided by the Industrial and Commercial Bank of China.
It will be undertaken by local Kenya firms, a consortium of Gulf Energy and Centum Investment. They formed Amu Power Company to implement the project. The Chinese firm, Power Construction Corporation of China will be in charge of constructing up the plant.
The plant construction is expected to start at the end of September 2015 and is expected to be operational within two years after the construction begin. South Africa which is among the top five hard coal producers in the world will supply Kenya with initial coal.
Once complete, the coal power project will contribute about 36% of the new combined grid capacity. The power plant will be an important source of electricity to the Lamu Port project, currently under construction. The port is expected to handle crude oil for export from Turkana and Hoima in Uganda.
The Lamu coal power project is among the flagship projects in Africa the Chinese flaunt with pride to the west. They are financing and contracting and are accusing the western of failing to match its rhetoric in Africa.
There are fears that the coal project would damage the local ecosystem and especially Lamu Old Town, a world heritage site. The 60,000 residents who will be affected by the project are also concerned with health risks posed project.
Kenya's Energy Future 