Norfund has written off its KSh1 billion investment in Kinangop Wind Farm project. This follows cancellation of the project in 2016 after protests from the local communites, who cited inadequate compensation for their land, as well as health concerns.
The KSh15.5 billion Kinangop Wind Farm project was initially anticipated to have a generation capacity of 60.8MW, and attracted Norfund which acquired a 19% stake in the project.
Other investors in the wind farm project included Old Mutual and Macquarie Group.
In a statement, Norfund attributed the writing off of the project to having a negative effect on the returns as values were set to zero on December 31, 2018 when operations shut down.
As reported by Business Daily, Stanbic Bank, which had teamed up with Standard Bank to fund the project. The firms appointed PricewaterhouseCoopers (PwC) as receiver managers after the project collapsed.