Power connection fee nearly triples in past 2 months

Politics and policy

Kenya Power technicians at work. Electricity connection charges have nearly tripled in the last two months despite the entry of the African Development Bank (AfDB) in the campaign by the State to make the utility available to poor rural households. FILE PHOTO | JARED NYATAYA |  NATION MEDIA GROUP

By KIARIE NJOROGE, gkiarie@ke.nationmedia.com

In Summary

• While the Ministry of Energy has consistently promised cheaper connectivity rate under the AfDB programme, a report prepared by Kenya Power suggests that only the vulnerable groups — widows, widowers, orphans and persons with disabilities — may benefit.
• Without any form of subsidy, however, the real cost of a single-phase connection stands at Sh135,000 while a three-phase connection requires Sh350,000.
• Under the Last Mile Connectivity, Kenya Power has set itself a target of building 47,200 kilometres of low voltage power lines to connect all potential customers within a 600-metre radius of its 35,000 transformers.

Electricity connection charges have nearly tripled in the last two months despite the entry of the African Development Bank (AfDB) in the campaign by the State to make the utility available to poor rural households.

Under the AfDB-funded “Last Mile Connectivity Project” (LMCP), Kenya Power is charging Sh91,000 on average for home users within a 600-metre transformer radius, up from Sh35,000 that it used to levy before the government withdrew its subsidy programme a few months ago.

While the Ministry of Energy has consistently promised cheaper connectivity rate under the AfDB programme, a report prepared by Kenya Power suggests that only the vulnerable groups — widows, widowers, orphans and persons with disabilities — may benefit.

READ: Low funding hits power connections

The electricity distributor wants the government to use AfDB’s Sh13.4 billion grant to subsidise connection fee for the vulnerable group, allowing them to continue paying at the old rate of Sh35,000 which is to be staggered over time.

READ: State inks Sh70bn power deal with AfDB

Without any form of subsidy, however, the real cost of a single-phase connection stands at Sh135,000 while a three-phase connection requires Sh350,000.

Under the Last Mile Connectivity, Kenya Power has set itself a target of building 47,200 kilometres of low voltage power lines to connect all potential customers within a 600-metre radius of its 35,000 transformers.

The Sh58.2 billion project is expected to benefit 472,002 households near public amenities like schools and health centres.

According to an environmental and social report conducted by the company in August, the model focuses on bringing the power closest to the customer’s premises by extending the low voltage network on existing and other upcoming transformers to reach households lying within their radius.

“To reduce the cost burden of increased connectivity on KPLC, as well as reduce the amount paid by the customer to connect to the grid, the strategy proposed is to extend the distribution network to as near the customer as possible using external or government funding,” says the report.

“Thereafter the cost of connecting customers can be at the maximisation rate based on the new average actual cost. The number of customers to be reached with the proposed funding is 200,000 at a total cost of $153.4million (Sh13.7 billion).”

The report says that even at the subsidised cost of Sh35,000, poor households were previously unable to connect as the amount had to be paid up front.
It advises that under the project that will be targeting poor rural households a deferred payment mode.