Sh27bn power project to connect rural areas set to kick off

A Sh27 billion project to connect transmission lines closer to households is set to kick-off in May, signalling lower connection charges for remote off-grid consumers who usually pay more.

Kenya Power on Tuesday said that it has unbundled the project into 10 lots to be handled separately by 10 contractors as it races to boost connection of rural households to power grid.

Dubbed “last mile connectivity”, the electricity project will involve the installation of low voltage power lines to reduce the distance between the grid and customers. It is expected to take one year.

“We will soon be announcing a standard connection charge below the current Sh35,000 based on the last mile connectivity project,” Kenya Power managing director Ben Chumo told the Business Daily.

“The bid document is now being prepared and we look to be over with procurement by end of April so that the project starts in May,” he added.

Cheaper connections

Consumers whose power connections require more than two poles have been shouldering extra costs above Kenya Power’s standard charge of Sh35,000 for a single-phase line. A pole costs about Sh15,000.

Mr Chumo said they had completed setting up 5,200 additional transformers across the country ahead of the connections. The government reckons that greater reach of power infrastructure in far-flung areas will cushion consumers from costs incurred on poles, conductors, transport and labour.

The expected contractors will bear all costs upfront including labour, transport, setting up poles and cables and will only be paid upon completion. Kenya Power will play an oversight role.

The Sh27 billion project is being financed by the African Development Bank (Sh12.2 billion) and the World Bank and seeks to double households connected to the grid by 2018.

READ: Kenya borrows Sh12bn for new electricity connections

Currently, 35 per cent of Kenya’s population is connected to power. The number is expected to go up as the new project is set to cut utility costs in connection subsidies.

Kenya Power has left the connection charges unchanged at Sh35,000 since 2004 despite rising costs as part of government’s plan to make connections more affordable to households.

The firm says the real cost of a single-phase connection stands at Sh135,000. Mr Chumo, however, said that connections to commercial premises will remain unchanged and will only enjoy cheaper power as the country ramps up generation of renewable energy.

“The government is more concerned about the ordinary Kenyans most of whom face financial difficulties in accessing power – this project targets them,” he said.