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    1.0.32

    State Pressed on High Power Connection Costs to the Poor

    Fred
    By Fred Obura
    - February 04, 2025
    - February 04, 2025
    EnergyKenya Business news
    State Pressed on High Power Connection Costs to the Poor

    The government has defended its last mile electricity project on allegations that it discriminates against the poor with its high connection bills.

    • •According to statistics, KPLC had connected 8.9 million customers to the grid by August 2022, a figure which the energy ministry says shot up by 1 million by February 2nd 2025.
    • •The government’s projects it will add another 1 million customers to the grid, expanding KPLC’s customer base to 11 million by 2027.
    • •Potential power customers have raised issues with connection charges, which are sometimes billed over KSh 2 million, especially where they are located far from existing infrastructure such as transformers.

    “To say that there is discrimination in power distribution can be totally misleading. Our rural electrification programme undertaken by Rural Electrification and Renewable Energy Corporation (REREC) and Kenya Power serves every Kenyans without regards to their class or stature in the society and this can be confirmed by checking statistics,” Opiyo Wandayi, CS Energy, says.

    “It depends on case by case with each particular case looked at its own merits and the distance from existing transformer is a major factor in determining the eventual cost of connection,” he added.

    In its Strategic Plan 2023-2027, REREC has set an objective to electrify 200,000 clients per year compared to the previous Strategic Plan target of 20,000 clients per year. Board Director Milton Lucheri says that the 5th generation plan will require funding of up to Ksh. 169 billion, which requires collaboration of the national government, county governments, development partners and other stakeholders to help the Corporation achieve the ambitious Plan.

    “We are aware of the fact that the Corporation has been relying heavily on exchequer funding for project implementation, but looking at the finance requirements of the strategic plan, there is a need to diversify funding sources for programs and projects. We shall, to this extent, be looking towards enhancing our partnerships to augment exchequer funding,” said Acting Chief Executive Officer Rose Mkalama.

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