300,000 households to benefit from AfDB’s Sh13.5bn cheap power connection plan

About 300,000 households and businesses will be linked to the power grid after the African Development Bank (AfDB) approved Sh13.5 billion for a low-cost connection project.

The project is targeting homes not connected to power and are within a 600-metre radius to a transformer.

The loan, which was approved on Monday, is the second disbursement from AfDB under the Last Mile Connectivity project. The first loan agreement of Sh12.2 billion was signed between the Pan-African lender and the government in December 2014.

The cheaper connection started in April and it targeted to connect 314, 000 homes near existing transformers.

AfDB said that the new loan will be used in the second phase where new transformers will be installed to connect homes that are far from power grid.

“(This) translates into providing electricity access to approximately 1.5 million people, mainly low income groups, and small businesses located near existing distribution transformers,” AfDB said in a statement.

“It will also pre-finance low-voltage lines extensions and connection costs, including meters, to potential customers.

Specifically, phase two of the project entails the supply of distribution material to reach 300,000 new connections; construction of low-voltage distribution lines; supervision and management; and capacity-building activities in targeted areas of expertise.”

Under the Last Mile project, electricity distributor Kenya Power connects customers living within a 600-metre radius from a transformer at a cost of Sh15,000 each.

Power consumers have the option of paying the amount upfront or in instalments through their monthly bills, removing a major hurdle to the acceleration of rural electrification.