The long-awaited launch of the Phase III of the Last Mile Connectivity Project is set to begin. This follows the approval of the Cabinet for its implementation.
The Phase III of the Last Mile Connectivity Project targets and total of 180,500 new electricity connections across households, schools, health centres, and micro, small, and medium enterprises (MSMEs). Also, it aims to strengthen the country’s power distribution grid. This is especially in underserved regions.
Also read: Last Mile Connectivity Project in Kenya Seeks Ksh21 bn Loan Funding
Last Mile Connectivity Project Factsheet
Project name: Last Mile Connectivity Project Phase III
Phase III funding: A loan from the African Development Bank (AfDB) and the Canada-AfDB Climate Fund.
Implementing agencies:
- Government of Kenya, represented by the National Treasury and Economic Planning.
- Kenya Power & Lighting Company Plc (KPLC).
- Ministry of Energy and Petroleum.
Project status and timelines:
- Expected Commencement (Original): October 2016
- Expected completion (Original): March 2020
- Recent approval: The Cabinet approved the implementation of Phase III on July 29, 2025, with the launch of the project set to begin.
- Implementation period (from recent approval): 24 months.
- Consultancy services: Expressions of interest for consultancy services were due by August 11, 2025.
- Bidding Documents for Works and Goods: Expected to be available by December 2025.
Financiers of the Phase III of the Last Mile Connectivity Project
The Phase III of the Last Mile Connectivity Project will be implemented in partnership with the African Development Bank (AfDB) and the Canada-AfDB Climate Fund. Furthermore, the project is expected to overcome persistent challenges such as high connection costs, underutilised transformers, and inadequate infrastructure in Kenya’s remote areas.
“Counties that have low electricity penetration and no previous support under similar programs will be accorded first priority,” said a Cabinet despatch.
Additionally, the initiative will ensure maximum use of idle transformers. Also, it will foresee the upgrade of strained substations to ensure more reliable power supply.
Socio-economic Impact of the Last Mile Connectivity Project
Furthermore, the socio-economic impact of the project is expected to be wide-reaching. It includes access to clean and affordable energy for marginalised communities. Additionally, it includes enhanced healthcare delivery through 24-hour powered facilities, digital learning opportunities in schools, and the growth of over 10,500 MSMEs through expanded three-phase power access.
Other than the approval of the Phase III of the Last Mile Connectivity Proje, the Cabinet also approved the Olkaria VII Geothermal Power Project. This geothermal project is a strategic initiative that is expected toexpectede the country’s clean energy output.
Also read: Kenya Power to carry on its Last Mile Connectivity Program
Olkaria VII Geothermal Power Project Operations Start Date
The Olkaria VII Geothermal Power Project is scheduled to be operational by June 2027. Furthermore, the project will add 80.3 megawatts (MW) of reliable baseload electricity into the national grid.
The geothermal plant will tap 19 production wells with provisions for seven additional wells over its 25-year lifespan.
Environmental sustainability will be upheld through the reinjection of geothermal fluids into the ground.
Financiers of the Olkaria VII Geothermal Power Project
The Olkaria VII Geothermal Power Project is backed by the Government of Japan and the European Investment Bank. Furthermore, Olkaria VII will help meet Kenya’s rapidly growing energy demands that is driven by population growth, expanding Special Economic Zones, and a surge in electric vehicle (EV) adoption.
With Kenya’s annual electricity demand predicted to increase by 100 MW and EV-related needs expected to reach 334MW by 2032, the new geothermal plant will play a crucial role in meeting this demand while cutting reliance on costly and polluting fossil fuels.
Also read: KenGen Cancels and Reopens Tender for $247.5 Olkaria VII Geothermal Plant Consultancy Work
