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Kenya Power grows customer base through expansion strategy

Kenya’s state-run power utility, Kenya Power, has grown its customer base by 1.4 million new customers in the last financial year to 6 million customers.

This is the result of intensive implementation initiatives including the LMCP and the electrification project targeting informal settlements and low-income areas.

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

On Wednesday, the parastatal secured 23 contracts for the implementation of the Last Mile Connectivity Project (LMCP) funded by both the African Development Bank (AfDB) and the World Bank.

AfDB funding strategy

Under the AfDB phase II of the LMCP, 314,200 households will be connected utilising 5,320 existing distribution transformers across the 47 counties at a cost of KShs.13.5 billion ($135 million), the utility said in a statement.

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.

Kenya Power’s managing director & CEO, Ken Tarus, said: “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.”

This comes after the implementation of phase I of the LMCP where 314,200 households are currently being connected at a cost of Kshs.13.5 billion ($135 million). This is being funded by the AfDB, which has contributed 90% of the amount with the Government of Kenya providing the balance of 10%.

World Bank funding strategy

Under the World Bank-funded LMCP, 312,500 households are targeted for connection at a cost of KShs.15 billion ($145 million), the parastatal explained.

Six contracts for works, which will be engaged for this project, were signed yesterday (Thursday 9 November 2017).

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

“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.


Featured image: Stock

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.