The project targets homes not connected to electricity and which are within a 600-metre radius to a transformer.

 

The loan, which was approved on Monday, is the second disbursement from AfDB under the Last Mile Connectivity project.

 

The first loan agreement of Sh12.2 billion was signed between the pan-African lender and the government in December 2014.

 

The cheaper connection titled Last Mile started in April and is targeted to connect 314,000 homes near existing transformers.

 

AfDB says the new loan will be used in the second phase where new transformers will be installed to connect homes that are far from power grid. "(This) translates into providing electricity access to approximately 1.5 million people, mainly low income groups, and small businesses located near existing distribution transformers," AfDB said in a statement.

 

A major hurdle

 

"It will also pre-finance low-voltage lines extensions and connection costs, including meters, to potential customers. Specifically, phase two of the project entails the supply of distribution material to reach 300,000 new connections; construction of low-voltage distribution lines; supervision and management; and capacity-building activities in targeted areas of expertise."

 

Under the Last Mile project, electricity distributor Kenya Power connects all customers living within a 600-metre radius from a transformer at a cost of Sh15,000 each.

 

Power consumers have the option of paying the Sh15,000 upfront or in instalments through their monthly bills, removing a major hurdle to acceleration of rural electrification.

 

The utility firm is utilising a cheaper technology known as single wire earthing return (SWER) to lower costs and achieve the Sh15,000 cost to customers.

 

Previously, customers within a 600-metre radius paid a connection fee of Sh35,000 upfront, making it difficult for poor households to afford power installation.

 

SWER uses single, thinner and lighter cables as opposed to the current system that uses two or four cables to connect domestic consumers.

 

Connecting more households and businesses is meant to spur economic development by allowing customers to establish or expand businesses.

 

Kenya Power has accelerated electricity connections over the last several years as it looks to achieve a 70 per cent link up rate by the end of next year."In the current financial year, Kenya Power connected over 1.17 million customers. As of mid-June 2016, Kenya Power registered over 4.7 million customers," AfDB said.

Source : allafrica.com