Kenya Power CEO Ben Chumo sheds light on the Last Mile lighting project

Kenya Power Chief Executive Ben Chumo

The Last Mile Project is aimed at facilitating the affordable connection of households to the national grid. It aims to achieve 70 per cent connectivity by 2017, from the current 40 per cent, as part of the universal access to electricity goal by 2020. Business Beat talked to Kenya Power Chief Executive Ben Chumo about the project’s implementation.

How is the Last Mile Project being implemented and funded?

The project involves connecting households lying within 600 metres of the earmarked transformers. This first phase will cover 318,000 households or 1.5 million Kenyans.

The second and third phases will involve maximisation of additional transformers, installing new transformers and extending the low-voltage network to connect more Kenyans. Under these phases, we target to connect 500,000 households hence adding 2.5 million Kenyans to the national grid.

Phase One of the project has been jointly funded by the Government and African Development Bank (AfDB) to the tune of Sh13.5 billion. The World Bank has complemented this programme by granting $150 million (Sh14.55 billion). Negotiations are at an advanced stage on funding for phases two and three.

How much are the beneficiaries of the project expected to pay?

The beneficiaries of the project will pay Sh15,000. We are calling it a contribution in the sense that the total cost of connection is slightly higher but the amount above this contribution is covered under the funding provided by the State and AfDB.

The beneficiaries under this scheme will be connected whether they have the money or not. Those able to raise the Sh15,000 will pay for those unable to pay. During connection, we will still connect those unable to pay but who will pay back the contribution fee within two years. This will translate to Sh625 per month and it will be loaded to their monthly bill.

There are applicants who paid the initial connection fees of Sh34,000. How will they be treated?

All those who paid Sh35,000 and are within 600 metres of the identified transformers will be charged the contribution fee of Sh15,000. The outstanding balance will go toward the payment of their bills.

How will the project be carried out in relation to other ongoing projects such as the ones under the Government Rural Electrification Programme?

Households within 600 metres of transformers installed by the Rural Electrification Authority in their scheme to connect all public facilities will also be connected under the Last Mile Project at a cost of Sh15,000. The potential customers will also be allowed to pay the connection fee alongside their monthly bills for two years. The projects will be carried out in tandem since they are complementary.

What will happen to potential customers who do not fall under the identified transformers?

We intend to cover all those within our existing 40,000 transformers. And as we implement this projects we will be installing more transformers and within three years, we will have literally covered everyone.  Even as we roll out the Last Mile Project, we are still undertaking our normal connectivity programmes, which we do at cost.

What about some applicants having quotations as high as Sh300,000 or above?

When customers apply, we provide a quotation for connection at cost. This means we quote for all materials required for connection. Some will be slightly high, others within the range or some even below the average of Sh34,000 based on the actual costs of all materials required to connect them.

What are the focus areas where the project will be carried out?

The identified 5,320 transformers targeted in the first phase have been selected from all the 47 counties. The selection criteria are based on the Government’s policy to address equity in terms of access.

Counties with fewer households accessing electricity will have more of their transformers covered. We will grow the network organically by maximising the existing 40,000 transformers spread across the country. Our goal is to ensure we attain 70 per cent electricity connectivity by 2017. Currently, we are at 40 per cent.