State's stalled cheap electricity project gets Sh27b shot in arm
Business
By
Brian Ngugi
| May 18, 2023
Kenya Power plans to connect 280,473 homes in 32 counties with cheap electricity under the controversial Last Mile Connectivity Project starting in November.
The latest phase of the State and development partners-backed project, which links homes to the national grid under a subsidised arrangement, will be funded by the French Development Agency (AFD) and the European Union (EU) at a cost of Sh26.8 billion.
"The government of Kenya has received credit from the Agence Francaise de Developpement (AFD) and a grant from the European Union (EU) towards the cost of the Kenya Power Distribution Last Mile Connectivity Project," said Kenya Power in tender documents.
Kenya Power consequently has invited bids from eligible bidders for the project. The homes to benefit are spread out across the country.
Beneficiary counties include Nandi, Uasin Gishu, Trans Nzoia, West Pokot, Bungoma, Kisumu, Siaya, Busia, Vihiga and Kakamega. Others are Homa Bay, Kisii, Migori, Nyamira, Bomet, Kericho, Laikipia, Nakuru, Nyeri, Embu, Kirinyaga and Tharaka Nithi, Kajiado, Makueni, Kitui, Kilifi, Kwale and Taita Taveta.
READ MORE
Why local BPO sector stands out among its regional peers
IMF boss warns global system not ready for AI cyber threats
State threatens to revoke licenses of 13,000 Saccos over non-compliance
Kenya tightens grip on crypto with Sh500m capital rule
New law aims to protect internal auditors, strengthen public oversight
Ruto launches Sh5.5 billion plan to revamp Voi-Taveta metre gauge railway
Why underwriting is shifting as risk grows more complex
World Bank approves Sh71 billion for Isiolo-Mandera road construction
Banks double lending target to small businesses to hit Sh326b
Contradictions in rural economies 13 years into devolved governance
"The company has invited bids for turnkey contractors, who will undertake the electrification project in 32 targeted counties at a total cost of Sh 26.8 billion," said Kenya Power. The utility firm said the new round of connections will involve the installation of 940 new transformers, the maximisation of 3,735 existing transformers, and the construction of associated power lines in the identified counties.
The resumption of the project renews hope for thousands of households without electricity after a financing hitch saw it stall. The African Development Bank (AfDB), which bankrolled the plan in the past, had said the project was grappling with a budget deficit, leading to delays in its continuation.
At the time, the project saw consumers get connected to the grid at a subsidised rate of Sh15,000, depending on their proximity to power lines and transformers, down from Sh35,000. Beneficiaries were strictly homes located within 600 metres of a transformer.