The government is seeking a Ksh21.66 billion ($150 million) loan from the African Development Bank (AfDB) to connect homes to electricity under the third phase of the “Last Mile Connectivity” project.
AfDB revealed that the Treasury has applied for the $150 million in a review of the programme set to be rolled out before the end of the year to power approximately 150,000 homes in 45 counties.
Moreover, the power project will exclude Nairobi and Mombasa counties.
Last Mile Connectivity Programme
Kenya Power unveiled the Last Mile Connectivity programme in 2015 to link home to electric power at subsidized rates as part of efforts to achieve universal electricity coverage.
This initiative is aimed at increasing Kenya Power’s customers.
Additionally, more than 1,316 new transformers will be purchased, extending the high voltage line by 650 kilometres and 6,798 kilometres for the low voltage network through the new funding, Business Daily reported, citing AfDB disclosure.
If the loan is approved, it will be an addition to the Ksh26.76 billion that the power company has received so far from three multilateral lenders aimed at connecting power to 280,473 households across 32 counties.
Furthermore, Kenya Power has received a loan of 13.38 billion shillings ($98.29 million) from the French Development Agency, a grant of 4.46 billion shillings ($32.76 million) from the European Union as well as a loan from the European Investment Bank of 8.92 billion shillings ($65.52 million).
3rd Phase Begins in November
According to AfDB, the third phase of the Last Mile initiative scheduled to begin in November will take an estimated five years to complete.
As part of the programme, the Kenyan government in partnership with the development partners will cater for part of the connection costs for the homes.
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This will help to reduce the amount that households pay.
At the start of the Last Mile Project, homes paid an average of Sh35,000 for connection. However, it was later reduced to an average of Sh15,000.
Nevertheless, AfDB mockups reveal that the average cost of customer connection for the project will be Sh72,000 under the third phase of the programme.