HomeRegional NewsEast AfricaFunding needed for Rural Power Lines in Kenya

Funding needed for Rural Power Lines in Kenya

The Rural Electrification Authority in Kenya, together with its chairman, Simon Gicharu, is working to connect Kapseret Primary school in Uasin Gishu County.

The National Treasury reassured consumers that the cost of new electricity connections, comprising single and three-phase connections, would not exceed Sh34,980 and Sh49,080.

Henry Rotich, the National Treasury’s Cabinet Secretary said that, Kenya Power had not been allocated funds in the 2013/2014 budget for power connection subsidies.

“The issue of power subsidy has always been a challenge…the reason there was no allocation is that we are working on a long standing concession facility supported by development partners to increase connections especially in rural areas” said Rotich

Principal Secretary at the Ministry of Energy in Kenya, Joseph Njoroge said that the 6th of May marked the final negotiations stages for which the state is to receive concessional loans worth Sh73.5 billion ($ 840 million). The African Development Bank was expected to contribute the first Sh14 billion ($160 million) in September, following the bank’s board meeting.

Njoroge said then, that the remainder of the funds are expected to be released over the next 4-5 years. Kenya Power had reported (in a review in April) the total cost of new electricity connection at Sh135, 000 for single-phase customers, including households within 600 metres of a transformer.

The review saw the subsidy being capped at Sh100,000 for customer connections costing no more than Sh135,000, the balance to paid by quoted customer. There were 2,330,962 connections in total last year, up from 2,038,625 in 2012.