The African Development Bank (AfDB) has backed off from planned multimillion-dollar funding for Sosian Menengai Geothermal Power.
The development finance institution moved to halt funding of the 35-megawatt geothermal power plant after Baringo Senator Gideon Moi purchased majority stake back.
The plant was previously controlled, entirely, by businessman Narendra Raval.
Sources privy to the same indicate that AfDB withdrew from the planned funding following revelations that Moi bought majority stake from Raval.
“At the moment, the bank is solely focused on the Quantum Power East Africa project
“It has previously been involved in the Sosian project as well, but a change in shareholding is required before it can engage further,” a source told Business Daily.
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AfDB now demands a change in ownership as a condition for funding Sosian for its planned project.
Raval sold his stake in the venture to the Moi family nearly five years after spending KSh80 billion on geothermal assets through Devki Group.
The Moi family business empire spans real estate, transport, education, hotels, banking, aviation, manufacturing, media, agri-business, security and construction.
