KSh15,000 electricity connection fee for households to continue

Under the third phase of a subsidized scheme, households close to transformers will continue to pay KSh15,000 for access to the national grid, according to Kenya Power.
The Kenya power company announced that the new phase of the project, which aims to connect around 150,000 new houses in forty five counties to the national grid, will begin in September of next year.
The program does not include Nairobi and Mombasa. Customers paid KSh35,000 in connection fees at the project’s beginning in 2015, but this amount was cut in half to KSh15,000 in 2019, making it easier for households to afford to light up their houses.
In an effort to secure affordable access to power for all residences near transformers, the Treasury and other lenders jointly supported the initiative, which was introduced in 2015.
“Customers will continue to pay KSh15,000 in the third phase of the Last Mile Connectivity,” Kenya Power said.
The project, which was initially scheduled to begin by the end of this year, is currently in the early stages of contractor and material procurement by the utility.
The African Development Bank (AfDB), the French Development Agency (AFD), the European Union (EU), and the European Investment Bank (EIB) are some of the initiative’s major backers.
In addition to the KSh13.38 billion (€90 million) loan from AFD, the KSh4.46 billion (€30 million) grant from the EU, and the KSh8.92 billion (€60 million) loan from the European Investment Bank (EIB), Kenya is asking for KSh21.66 billion ($150 million) from the AfDB.
According to Kenya Power’s disclosures, since the project’s inception in 2015, 741,185 subscribers had been added to the grid as part of the initiative.
The project, which was begun 8 years ago as part of Kenya’s initiative to light up homes, has now reached its third and final phase. Beneficiaries have to be situated 600 meters or less from a transformer.
Kenya’s power coverage increased thanks to the Last Mile Connectivity program from 2.3 million connections in 2013 to just over 9 million at the end of the previous year.
However, there are concerns regarding the financial benefits of the extended grid, which was formerly thought to be essential for increasing Kenya Power’s energy sales.