HomeRegional NewsEast AfricaKenya awards Shs.3.7 billion power distribution contracts

Kenya awards Shs.3.7 billion power distribution contracts

29 June 2012 – KEC International (India) Ltd and Siemens of India have signed power distribution system improvement contracts with Kenya Power worth Shs.3.7 billion that will increase connection of electricity in various parts of the country.

Kenya Power Managing Director and Chief Executive Officer, Joseph Njoroge, said the power projects will help steer the Company’s strategic plan of increasing access to electricity to 50% of Kenyans by 2020.

Speaking during a press conference in Nairobi Njoroge said the Company had received Shs.8.5 billion from the World Bank out of which Shs.3.7 billion will be used to improve distribution, quality and reliability of power supply across Nairobi, the western part of the country and Mount Kenya region.

The projects will be implemented under the Kenya Electricity Expansion Programme (KEEP) with the ultimate aim of improving the quality and reliability of supply, reduce system losses, and increase capacity for connection of new customers.

KEC international (India) Ltd won contracts to establish sub-stations in satellite areas of Nairobi such as Uplands, Ndenderu, Kirigiti, Lukenya, Rironi, Lower Kabete, Githunguri, Villa Franca, and Magumu at a total of Shs.1.94 billion. It also won the contract to design and install various sub-station transformers in Nyanza, Rift Valley and Western provinces at a combined cost of Shs.954.58

The transformers are to be installed in Ahero, Kibos, Majengo and Maseno in Nyanza; and Kabarak, Kipsaraman, Chepseon, and Elgon View in Rift Valley. Siemens Limited of India will establish new sub-stations in Gatundu, Juja, Kangema, Tala, and Mwea at a total cost of Shs.857.66 million.

While acknowledging that power projects are by nature capital intensive, Njoroge said the company banks on internally generated funds and the support of the government and development partners to bring the system to the acceptable level of efficiency and reliability required by a modern and robust economy.

A total of Shs.26 billion has been mobilized from the World Bank and other lending partners in support of the Energy Sector Recovery Project (ESRP) with Kenya Power contributing Shs.6 billion in counterpart funds. The project was mooted in 2003 to rehabilitate and reinforce existing transmission and distribution network.

Kenya Power has approximately 1.9 million electricity customers and has been adding more than 200,000 customers annually to this figure since 2008. The Company aims to connect over 300,000 customers to the national grid annually in the subsequent years.