More homes set to access power as KPLC steps up grid

The Kenya Power and Lighting Company plans to massively scale up electricity transmission and distribution to wire up a larger proportion of the country to the national power grid.

The firm, in conjunction with the Kenya Electricity Transmission Company (Ketraco), plans to invest Sh141 billion ($1.9 billion) in the next three years in a major upgrade and installation of new power distribution and transmission capacity to meet growing demand for power by businesses and households.

The extensive infrastructural layout to cover an estimated 5,498 km is expected to address existing transmission weaknesses and power losses while at the same time attempting to meet the growing demand for power by enhancing connection across the country.

“The enormous infrastructural expansion supported by huge investments in generation and distribution will enhance power access contributing to economic growth in the country,” said Mr Joseph Njoroge, KPLC managing director.

Mr Njoroge indicated that this will allow the sole power distributor to obtain cheaper electricity, improve on operational efficiency and reliability, reduce system power loss and increase the rate of customer connections hence overall revenue for the firm.

The government estimates that only 10 per cent of Kenyan households have electricity and it is targeting to raise access to 40 per cent by 2020.

The capital intensive project will see the expansion of the country’s transmission and distribution from the current 41,486 km to 46,984 km.

Notably, the government unbundled the electricity sector by forming different entities to handle separate functions such as exploration, production, transmission and selling of power.

The unbundling process has led to the creation of two additional entities, Geothermal Development Corporation (GDC) and Ketraco charged with undertaking exploration and setting up of transmission infrastructure respectively.

The government estimates that the transmission project will cost Sh83 billion ($1,096 million) and it has set aside Sh25 billion ($329 million) to be used by Ketraco.

The balance of Sh60 billion will be sourced externally either from development partners or private investors.

The government has been carrying out the rural electrification programme to enhance electricity access especially in rural areas.

Overall growth

However, lack of transmission infrastructure remains the main bottleneck.

The huge capital outlay required to install power lines has slowed down the wiring process leading to loss of business opportunities for the rural economy.