Kenya Power Managing Director Ben Chumo told an investor briefing in Nairobi that the project which will be funded by multilateral financial institutions which will connect at least 4.5 million people onto the national grid.
“World Bank will provide a loan of 150 million dollars, while the African Development Bank (AfDB) will provide funding to the tune of 285 million dollars,” Chumo said when Kenya Power released results of the 2014/2015 financial year.
The electrification project will be conducted in three phases and will be completed in 18 months.
Chumo said that the World Bank has agreed to fund phase one at a cost of 150 million dollars.
“The second and third phases will be funded by the AfDB,” he added.
Government data indicates that currently 47 percent of the population is connected to the national grid up from 37 percent last year.
The managing director said that his organization target is to increase access to electricity to 70 percent of the country’s population by 2017 and achieve 100 percent coverage by 2020.
World Bank is also currently funding a slum electrification programme to the tune of approximately 90 million dollars.
Chumo noted that his firm has set aside 100 million dollars to carry out maintenance in order to reduce losses of electricity during the transmission.
“Approximately 20 percent of electricity generated is lost due to old transmission lines and our target is reduce the figure to under ten percent,” he said.
According to Kenya Power’s financial statement, the electricity distributor made a profit before tax of 121 million dollars for the last financial year, which is a 11 percent increase from the previous financial year, when the firm posted 109 million dollars in pre tax profit. Enditem