Kenya Power Lighting Company (KPLC) has received a major boost of US$ 457.5m from the World Bank, which is to be implemented in expansion and upgrading of electricity supply network in the country.
According to the global development lender, US$250m will be granted from a loan, US$ 200m in guarantee and the rest in a grant from the Strategic Climate Fund-Scaling up Renewable Energy Programme.
The massive boost from the World Bank will majorly be used to connect 630,000 new customers in Kenya and also upgrade the services of their existing customers.
“We are making this significant and innovative investment in Kenya’s power sector to expand electricity access to low income households and small businesses as part of the nation’s push for shared prosperity” said country director Diarietou Gaye in a statement.
“Modern, reliable electricity will improve the quality of life of Kenyans and underpins enhanced competitiveness of the Kenyan economy”.
The planned upgrading will provide for increased power to the national grid, of which the Kenyan Government is targeting to achieve by 2017; that is the 5,000MW energy increment production.
World Bank is a recognized financial institution that aides developing countries with loans to be used for capital programs. Kenya is targeting 15,000MW in the next 20 years according to its blueprint, in order to boost electricity supply to see it achieve Vision 2030. 5,000MW must be generated by 2016 if this target must be met.
Kenya Power Lighting Co had received US$25m from Africa Finance Corporation on January this year, part of which would be spent on rehabilitating electricity supply network.