Kenya Power personnel replace a transformer in Mombasa. PHOTO | FILE
NATION MEDIA GROUP
Kenya Power and Jamii Bora Bank have signed an agreement that will see new applicants financed to get connected to electricity.
Through
the deal, Kenya Power hopes to increase the number of new connections
in an effort to realise the government’s target of more than 70 per cent
access to electricity in the next five years.
The
loan will cater for all categories of customers, including those
applying for the single-phase meters commonly used in households, and
three-phase ones for commercial establishments.
“With a
loan facility, our customers are able to connect power. We look forward
to Kenyans taking it up so that we can focus on the rural areas where
income is a challenge,” Kenya Power chief executive officer Ben Chumo
said.
He was speaking in Nairobi on Wednesday during the signing of the deal between the two institutions.
Kenya
Power did not disclose the number of new customers targeted under this
arrangement. But according to Mr Chumo, some 453,000 were connected last
year.
Jamii Bora CEO Samuel Kimani said all the people
to be connected using the loan would get prepaid meters to avert the
risk of defaulting.
SUBJECT TO REVISION
The
bank will offer the loan at an interest rate of 16 per cent to both
existing and new account holders, “which will be subject to revision
depending on market trends”.
This is not the first time
the power company is partnering with a financial institution to provide
loans to fund new power connections.
Last week, the
utility said it had also sealed deals with Equity Bank and National Bank
for the financing power supply connections.
Kenya
Power charges a minimum of Sh35,000 per new client for a single-phase
meter for applicants living within a 600-metre radius from its
transformer.
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