Kenya Signs Contracts For Last Mile Connectivity Project

31 May 2024
Kenya Signs Contracts For Last Mile Connectivity Project

Kenya Power & Lighting Company has inked deals with 26 contractors to implement phase four of its Last Mile Connectivity Project.

The scheme will see 280,000 households in 32 counties connected to the national grid over the course of 18 months.

The Last Mile Connectivity Project aims to extend the power grid to rural and underserved areas, bridging the development gap between urban and rural communities and boosting national productivity.

The contracts were signed on 27 May. Among the firms awarded contracts were:

  • Master Power Systems (local) for West Pokot county;
  • Meru Wood Industries (local) for Meru county;
  • KB Sanghani & Sons (local) for Nyamira, Bomet and Kericho counties;
  • MS India for Homabay county;
  • China Hubei Engineering for Bungoma, Kilifi, Kwale, Kajiado, Makueni, Nyandarua, Nyeri, Meru and Tharaka Nithi counties;
  • East India Udyog for Kitui, Embu, Migori and Kirinyaga counties;
  • Etrade Company (local) for Narok county;
  • CCC International for Vihiga, Busia and Kakamega counties;
  • Elemech Engineering (local) for Laikipia, Nakuru, Nyandarua and Meru counties.

The implementation of phase four is being supported with Kenyan shilling 27 billion (US$206 million) of financing from the French Development Agency (AFD), the EU and European Investment Bank, and Kenyan shilling 2.5 billion (US$19 million) from the Kenyan government.

During the contract signing ceremony, Kenya’s President William Ruto said the power lines erected under the programme will include fibre-optic cables, ensuring universal internet access.

“We are moving government services to the digital space and ICT hubs are coming up across the country. We are moving our business to e-commerce; we are moving our learning to e-learning; we are moving health to e-health. Therefore, the internet is as important as electricity,” he said.

Late last year, the AfDB approved a €101 million (US$110 million) loan for Kenya to implement phase three of the Last Mile Connectivity Project. The work entails strengthening the electricity network by constructing 13 3/11kV substations, including associated grid extensions and distribution network in 45 of the 47 administrative counties.

The first two phases of the Last Mile Connectivity Project were also financed by the AfDB and provided grid-connected electricity for more than 2.6 million people.

Kenya’s electricity access rate has risen from 27% in 2013 to more than 75% today, with 9.6 million households now connected to the grid. The government aims to achieve universal access by 2030.

During the contract signing ceremony, the EU Ambassador to Kenya Henriette Geiger said that it had launched the Green Resilient Electricity System Programme for Kenya in late May.

The programme looks to support Kenya’s goal of 100% clean power generation by 2030 through critical investments and capacity-building measures to expand the production of green electricity as well as improving grid stability and efficiency.

The EU and Kenya are investing up to Kenyan shilling 36 billion (US$273.8 million) in the programme.

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