Kenya Power plans to connect three million new users by 2017

Kenya Power managing director Ben Chumo (centre) accompanied by Uasin Gishu Deputy governor Daniel Chemno with Veronica Mwihaki, 104 years old and her daughter Hannah Wanjiku (left), 70 years, after she lit her house at Kasarani estate in Eldoret town on February 14, 2015. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• Focus would be placed on the counties to ensure that residents living in remote areas are hooked to the national grid.
• The two financial partners will inject Sh12.2 billion each into the programme that will cut connection charges from the current Sh35,000 to about Sh1,160.
• The firm is investing Sh10.45 billion in the construction of 36 sub-stations to reinforce the country’s electricity network.

By CHARLES WOKABI
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Kenya Power plans to make at least three million new connections in the next two years as it aims at distributing electricity to the whole country by 2020.

The electricity distributor was targeting a customer base of 6.7 million by 2017, which would translate into a 70 per cent access rate in the country.

At the moment, the company distributes power to about 3.02 million consumers.

“We are targeting universal access by 2020 in line with our corporate strategy and the country’s development plans,” Kenya Power Chief Executive Officer Ben Chumo said. He was speaking during the two-day governors’ summit in Naivasha which came to a close on Friday.

Mr Chumo said the company was making significant investments in the upgrade of its distribution network with a view to increase efficiency and expand reach. Focus would be placed on the counties to ensure that residents living in remote areas are hooked to the national grid.

46 MANAGERS

In line with this, the company has already appointed 46 business managers to take charge of its deals in the counties, the CEO said.

Last week, Kenya Power signed a deal with the World Bank and African Development Bank that will significantly bring down the cost of new electricity connections for residents living in informal settlements. The two financial partners will inject Sh12.2 billion each into the programme that will cut connection charges from the current Sh35,000 to about Sh1,160.

The high cost of power in Kenya has been cited as one of the biggest challenges faced by businesses. However, efforts by the government to bring down the cost of power through investments in cheaper production and distribution of electricity have paid off.

Mr Chumo said that domestic consumers are now enjoying up to 25 per cent reduction while industrial users have recorded a drop of about 30 per cent in the in their power bills. The firm is investing Sh10.45 billion in the construction of 36 sub-stations to reinforce the country’s electricity network.

Half of this money would be paid to local contractors to improve power distribution and focus on poor counties. Kenya Power realised a 38.5 per cent growth in profit after tax for the six months to December 2014.

The utility firm attributed the jump in net earnings to increased power sales and an upward review of the tariff during the trading period. Revenue from electricity sales increased to Sh37.6 billion from Sh26.9 billion recorded in 2013.