Kenya Power signs 23 contracts for implementation of the Last Mile Connectivity Project

Targeted at benefitting approximately 314,200 non-commercial customers (households) in phase 1 and resulting in electricity access to an additional 1.5 million Kenyans, the Government of Kenya and African Development Bank (AfDB) financed project at the cost of KShs.13.5 Billion, will involve extension of the low voltage network to reach households located within 600 meters of a transformer. Corporate Watch Magazine takes a looks at the impact of the signing of 23 more contracts to further reach more households in a bid to connect them to the national electricity grid.

In Summary:

• This signing comes after the implementation of LMCP phase I where 314,200 households are being connected at a cost of Kshs.13.5 billion
• This phase will involve extension of low voltage network on existing transformers and installation of 1,000 new distribution transformers across the 47 counties
• The Last Mile Connectivity Project and the electrification project targeting informal settlements and low-income areas has seen Kenya Power’s customer base grow by 1.4 million new customers in the last financial year to 6,182,282 customers.
• The rapid growth has raised the country’s electricity connectivity access rate from 27% in 2013 to 70.3% as at 30^th June, 2017. The target is to achieve universal access by 2020.

Kenya Power has signed a total of 23 contracts for the implementation of the Last Mile Connectivity Project (LMCP) funded by both the African Development Bank and the World Bank.

Under the AfDB phase II of LMCP, 314,200 households will be connected utilizing 5,320 existing distribution transformers across the 47 counties at a cost of KShs.13.5 billion. AfDB will cover 87% while the Government of Kenya will provide 13% of the total amount. This project will involve 15 contracts for works spread across the country.

“The Last Mile Connectivity Project is expected to address the high cost of extending power supply network especially in the rural and low-income areas,” said Kenya Power’s Managing Director & CEO Ken Tarus, PhD.

This comes after the implementation of LMCP phase I where 314,200 households are being connected at a cost of Kshs.13.5 billion, funded by AfDB which contributed 90% of the amount with the Government of Kenya providing the balance of 10%.

Under the World Bank-funded LMCP, 312,500 households are targeted for connection at a cost of KShs.15 billion. Six contracts for works which will be engaged for this project have been signed today.

This phase will involve extension of low voltage network on existing transformers and installation of 1,000 new distribution transformers across the 47 counties.

Intensive implementation of various connectivity strategies including the Last Mile Connectivity Project and the electrification project targeting informal settlements and low-income areas has seen Kenya Power’s customer base grow by 1.4 million new customers in the last financial year to 6,182,282 customers.

The rapid growth has raised the country’s electricity connectivity access rate from 27% in 2013 to 70.3% as at 30^th June, 2017. The target is to achieve universal access by 2020.

“The sustainability of our business is anchored on entrenching our presence in the electricity market. We will continue to grow our customer base and venture into new frontiers. The connectivity drive is aimed at increasing revenue to sustain our business and promote socio economic development,” said Dr Tarus.