The Last Mile Connectivity Project (LMCP) in Kenya is a major government-led initiative, primarily implemented by Kenya Power and Lighting Company (KPLC), aimed at dramatically increasing the rate of electricity access across the country, particularly in rural and low-income urban areas. The core of the project involves maximizing the use of existing distribution transformers by extending the low-voltage network up to 600 meters to connect households that were previously too far or found the connection costs prohibitive. The project is structured in multiple phases, with significant financial backing from the Government of Kenya and partners like the African Development Bank (AfDB), World Bank, and European Investment Bank (EIB). Also, in another similar undertaking that is expected to boost electricity access, Kenya has inked a $311 Million Power Lines Deal With an Indian Firm.
A key feature of the LMCP is the subsidized connection fee, which was reduced to make it affordable for targeted beneficiaries, often allowing the KES 15,000 charge to be paid back in installments by deducting a portion of the monthly prepaid meter token purchases (the “Stima Loan” scheme). By removing the financial and physical barriers to access, the LMCP is a critical component of Kenya’s long-term goal to achieve universal electricity access, driving socioeconomic development by improving education, health services, and supporting small businesses.
Reported on August 22, 2023
Last Mile Connectivity Project through the Government of Kenya has set out in search of a Sh21.66 billion ($150 million) loan from the African Development Bank (AfDB) in order to enable the connection of homes to electric power under the third phase of the project that was previously being implemented.
The AfDB revealed that the Treasury has applied for the $150 million loan in a survey of the program to be carried out before the end of the year 2023 to provide electricity to an expected 150,000 homes in 45 counties leaving alone counties of Nairobi and Mombasa.
Kenya Power and Lightning Company began the Last Mile Connectivity Project drive in 2015 to connect homes close to transformers to power at affordable rates in the pursuit of achieving universal electricity coverage in the country.
Also read: Kenya receives US$ 415m from donors for last mile project
The program will expand Kenya Power’s clients to over 9,000,000 clients in spite of inquiries about the incomes from homes associated with power connectivity under the Last Mile Connectivity project.
The AfDB pointed out that approximately 1,316 new transformers will be bought, expanding the high voltage line by 650 kilometers and 6,798 kilometers for the low voltage network through this financing.
The third phase of the Last Mile Connectivity Project is set to begin in the month of November and will require approximately five years to finish, as per the AfDB.
Households paid around Sh35,000 for electric power to be connected in their homes toward the beginning of the Last Mile Connectivity Project, which was subsequently decreased to a sum of Sh15,000. The AfDB reenactments show that the typical expense of client connection for the project will cost Sh72,000 in the third stage.
Last Mile Connectivity Project Funders
KPLC got a credit of Sh13.38 billion (€90 million) from the French Development Agency and another extra award of Sh4.46billion (€30 million) from the EU and one more advance from the European Investment Bank of Sh8.92 billion (€60 million) in the month of May. The loan, whenever endorsed, will notwithstanding the Sh26.76 billion that Kenya Power has so far got from three multilateral moneylenders intended for electric power connectivity of 280,473 families across thirty-two counties in the country.
In this program, the Kenyan government in partnership with the development partners associated with the project caters a piece of the electric connectivity costs for the homes, diminishing the sum that families pay.
The Last Mile Connectivity Project has assisted Kenya with expanding power connectivity inclusion from 2.3 million power users in the year 2013 to 9,000,000 users toward the finish of last year, an electric power access rate of over 70%.
