Kenya, France ink Sh3.63 billion power deal

More Kenyans are set to be connected to the national power grid following the signing of a Sh3.63 billion deal with France.

The deal will provide funds for a mini-grid retrofitting project that will be implemented by Kenya Power and will see the installation of 9.5 megawatts (MW) of additional power in the Northern Kenya Counties.

The project is expected to reduce the average cost of electricity production of mini-grids by an average of 20 per cent, contribute to the improvement of energy security of supply of Kenya, support economic development by promoting more reliable electricity service as well as reduce greenhouse gas emissions associated with the combustion of diesel.

This new project will further contribute to the long-term partnership developed between the Kenyan authorities and AFD in the energy sector.

President Uhuru Kenyatta and French Foreign Minister Jean-Marc Ayrault witnessed the signing of the Credit Facility Agreement in State House, Nairobi where Energy Cabinet Secretary Charles Keter signed the agreement on behalf of Kenyan government.

The projects will involve the setting up of mini-grids in 23 sites including Banisa, Baragoi, Dadaab, Eldas, Elwak, Faza, Habaswein, Hola, and Hulugho.

Other sites that will benefit from the funding are Kiunga, Mandera, Maikona, Merti, Mfangano, North Horr, Laisamis, Lokichoggio, Lokiriama, Lokitang, Lokori, Rhamu and Takaba.

The funding is a major boost to the government’s efforts to ensure accessible, affordable, and reliable power to Kenyans given that the counties will also get an additional 0.6 MW generated by wind power.

Since 2013, the government has doubled the number of citizens connected to the grid from around 13 million to some 25 million.

In the last two years, over 14,000 schools have been connected to electricity, which means 23,000 are now connected to power.

Over 40 new substations have also been commissioned since the Jubilee Government came to office, raising power generation from 1,765 MW to more than 2,422 MW.

Since the beginning of its activity in Kenya in early 2000, AFD has committed over €800 million (Sh90.7 billion) in loans to the Kenyan power sector spreading across the entire industry value chain.

 

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