KenGen said it had signed a deal with Japan's Mitsubishi Corporation and Mitsubishi Heavy Industries Ltd to build the plant from September.

Geothermal electricity is produced by trapping steam released by hot rocks with water reservoirs deep in the earth and using it to power turbines.

"KenGen ...

signed an engineer, procure, construct contract with Mitsubishi Corporation and Mitsubishi Heavy Industries Joint Venture for the construction of a new 35 MW machine," a company statement, seen by Reuters yesterday, said.

"Construction will begin next month and is expected to be completed in 27 months."

KenGen said the new plant would increase its geothermal capacity to 165 MW.

Earlier in the year the company started drilling a well for its fourth geothermal plant, expected to produce 70 MW.

KenGen says the country has potential to produce 2 000 MW from geothermal sources on the floor of the Rift Valley.

The country is trying to boost its power production to meet ever growing demand to drive its expanding economy.

KenGen generates about 80 per cent of Kenya's total power capacity of some 1 060 MW.

Nampa-Reuters

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