Kenya Power secures Sh42bn funding to connect homes
Kenya Power workers in Nyeri town: The firm says it has secured Sh42 billion from donors to connect a million households to the national grid. PHOTO | FILE
Electricity distribution company Kenya Power says the government has already locked in Sh42 billion from donors to connect a million households to the national grid under the last mile project.
An additional Sh13 billion is set to be secured this month subject to board approvals from respective donors.
In a report tabled at the National Assembly Energy committee on Tuesday, the NSE-listed power firm said that the African Development Bank (AfDB) had already given funds for the first phase.
The initial phase of the project targeting 314,200 homes, jointly financed by the Kenya government and AfDB, is expected to cost Sh13.5 billion.
World Bank, through the International Development Association (IDA), has provided Sh15 billion under the Kenya Electrification Modernization Project to light up more than 300,000 homes.
The boards of French funded Agencie Francaise Development (AFD) and the European Union (EU) have also approved Sh12 billion funding to connect an additional 230,000 customers.
“The AFD board approved its portion in December 2015 while EU board’s approval was granted in January 2016. Next step is the signing of the loan agreement which is expected in April 2016,” the report read.
The European Investment Bank is expected to review a request for Sh8 billion (70 million euros) mid this year according to Kenya Power.
If approved, an additional 149,250 households will get access to electricity.
