EDITORIAL: Scale up power connections to spur economic growth

What you need to know:

The rate of connection improved with the change in pricing to Sh15,000.
The National Treasury’s decision to set aside Sh3 billion to increase the number of transformers starting July is commendable.
Besides powering homes, more connections would enable creation of numerous job opportunities.

Kenya has over the past 10 years made great strides in power connectivity, taking electricity to millions of homes, thousands of schools and far flung shopping centres.

The rate of connection improved even further with the change in pricing to Sh15,000, which enabled thousands in the upper low income homes to access this crucial service.

This more than halving of connection prices beginning 2015 from Sh36,000 to Sh15,000 came with government intervention that offered a cost subsidy.

But this has not gone as well as initially promised, thanks to the failure to put in place the requisite preparations in terms of a budget for transformers and improved transmission systems. It has turned out that some customers are paying in excess of Sh100,000 to get connected because their homes or business premises are located far from the nearest transformers.

The offer to pay the Sh15,000 in instalments of 36 months sweetened the deal further, but major challenges such as a weak transmission system and few transformers left many outside the 600 metres radius.

It is for this reason that the National Treasury’s decision to set aside Sh3 billion to increase the number of transformers starting July is commendable. The critical point is to lay a sound plan that will enable work to start immediately the money is made available.

That plan should take into account the whole business of electricity connections – including the transmission system that judging by the number of power blackouts is weak.

We have been told, time and again, that the peak demand stands at slightly over 1,600 megawatts yet production capacity stands at 2,300 MW and growing.

This means that there is a significant amount of idle capacity and yet little money is being spent to maintain the transmission system to enable full exploitation of this capacity.

The bigger question remains that of promoting economic growth with employment from this higher capacity. Besides powering homes, more connections would enable creation of numerous job opportunities in such areas as welding, barber shops, cyber cafes, entertainment spots and restaurants.