The African Development Bank Group (AfDB) has approved a USD 110.8 million (KES 17.0 billion) loan for Kenya as part of the Last Mile Connectivity Project, according to recent reports. The initiative, outlined as a priority action in the AfDB’s 2019-2023 Country Strategy Paper for Kenya, aims to bring electricity to homes, social infrastructure, and small businesses, aligning with Kenya’s Vision 2030.
Nnenna Nwabufo, the African Development Bank Group Director General for East Africa, stated, “The Bank’s support will help households, social infrastructure, and local businesses access adequate, reliable, and affordable energy supply, creating an enabling environment for the realization of Kenya’s Vision 2030.”
In its third phase, financed by the AfDB, the Last Mile Connectivity Project plans to connect 543,972 Kenyans to the power grid. The scope of the project includes constructing 13 substations and associated grid extensions across 45 counties, with the goal of linking 139,480 households and 10,521 small and medium enterprises, as well as social facilities, to the grid. Beyond illuminating homes and businesses, the project aims to reduce the reliance on environmentally harmful fossil fuels and biomass.
The project’s potential impact extends beyond electricity access, as it is poised to create employment opportunities, foster businesses, and enhance service delivery in sectors like education and healthcare. By improving the socio-economic landscape, it is expected to positively contribute to the overall well-being and productivity of Kenyan society, aligning with the goals set by Vision 2030.
This development comes in the context of challenges faced by Kenya Power and Lighting Company (KPLC), as highlighted by Kenya’s Auditor General, Nancy Gathungu. In her latest report for the year ended June 30, 2023, Gathungu noted financial and governance challenges, stating that KPLC has been operating at a loss for seven consecutive years. She emphasized the need for strategic initiatives to improve the company’s financial results.
The Last Mile Connectivity Project’s approval is particularly significant as Kenya aims for universal electricity access by 2030, despite already having 77.0 percent of its population connected to the grid—an amount surpassing the Sub-Saharan African average of 50.0 percent. The AfDB-backed project is seen as a crucial step towards achieving the government’s goal.
