Kenya gets Sh12bn from AfDB for new power connections

The African Development Bank (AfDB) will lend the Kenya Government Sh12.2 billion to help pay for more than 300,000 new electricity connections.

This follows the signing of a loan agreement Thursday by Treasury secretary Henry Rotich and AfDB Regional Director Gabriel Negatu to finance the implementation of the ‘Last Mile Electricity Connectivity’ project.

President Uhuru Kenyatta and Deputy President William Ruto witnessed the signing at State House, Nairobi. Energy secretary Davis Chirchir, also at the event, welcomed funding of the electricity project.

Mr Rotich said the ‘Last Mile’ project entails construction of 12 kilometers of low voltage distribution lines and installation of connection equipment in a minimum of 284,200 homes and 30,000 commercial premises.

“Successful completion… will see an additional 1.2 million people access electricity,” the National Treasury Cabinet Secretary said.

He added that connecting commercial users in rural areas will open avenues for self-employment and job creation and also reduce the use of kerosene and firewood for cooking and lighting which are detrimental to the environment.

The Government will provide Sh1.2 billion directly to meet the total cost of the connectivity project, currently budgeted at Sh13.4 billion.  

The CS disclosed that AfDB had also committed to finance the Kenya-Tanzania power interconnection project, intended to improve supply of electricity in the two countries by creating an East African Power Pool (EAPP).

“The primary objective of this project is to promote power trade and regional integration, social and economic development in East Africa,” he said.

He added that the Energy ministry has also prepared the Lamu-Kitui-Nairobi East Transmission Lines project for financing by the AfDB.

Mr Negatu affirmed the bank’s commitment to funding Government projects.

Rewritten by BDAfrica.com REPORTER