Friday, December 13, 2024

Kenya inks Ksh27b deal to revitalize last mile power connectivity

Money & Market

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The French Development Agency(FDA) has partnered with Kenya to connect thousands of households with electricity under the last mile power connectivity project.

FDA is offering Ksh27 billion which Kenya will use to support its universal electricity plan targeting around 280,000 by 2030.

“The power lines erected under this program will also transmit fibre optic cables ensuring universal internet access,” said president William Ruto.

Kenya is working on a similar electricity connectivity programme worth Ksh 22 billion with the Africa Development Bank and Saudi Arabia to connect more than 270,000 customers.

The Kenya Last Mile Connection Project adopts a new approach in expanding the distribution network in the country.

Since the current customer-driven expansion is approaching saturation, Kenya, with the objective of increasing the connectivity rate in the country, has decided to extend the low voltage network from existing distribution transformers to reach households located within a 600-m diameter.

The government envisages to pre-finance all the distribution and connection costs, including meters, to the potential customers, thus benefiting from economies of scale and contributing to reduction in the connection costs.

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