Kenyan businessman and multimillionaire industrialist Narendra Raval has unveiled that his multi-product steel manufacturing conglomerate, Devki Group, shells out Ksh900 million ($6.7 million) per month to Kenya Power for electricity.
In an interview earlier this week, the business magnate who is known for his wealth and stature in the country, shed light on how his firm is weathering the storm of escalating energy prices and surging operational expenses.
Raval disclosed that his company’s monthly outgoings tally up to roughly KSh2 billion ($14.9 million), which incorporates disbursements towards salaries for a workforce of around 11,000 and disbursements of utility bills including electricity, which oscillates between Ksh700 million ($5.2 million) to Ksh900 million ($6.7 million).
“Our overheads, salaries, and power expenses alone amount to KSh2 billion every month. That means we have to source Ksh200 million ($1.49 million) every day, excluding Sundays,” Raval revealed, underscoring the steep costs involved in running a conglomerate as vast as Devki Group.
This revelation comes on the heels of Devki Steel Mills, a subsidiary of Devki Group, applying for a license to generate electricity in Kenya, as part of a broader strategy to diversify operations and augment profitability.
Upon receiving the license, Devki Steel Mills will become one of the power producers selling electricity to Kenya Power and Lighting Company, alongside KenGen, BTE Renewables, and Kwale International Sugar Company.
The company’s strategic entry into the power industry comes as it plans to build a 60-megawatt wind power plant in Kenya as part of its transition to renewable energy. The planned project, which will convert wind into power using a low-wind turbine, will be built by erecting 38 wind turbines outfitted with all the necessary elements.
The wind power facility will be the fourth major power plant in Kenya, following Kipeto Wind, which generates 100 megawatts of electricity, Lake Turkana Wind Power Plant, which generates 310 megawatts, and KenGen’s Ngong Wind Plant, which generates 26.1 megawatts.