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Power connection ignites economic activities in sleepy towns

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The unprecedented number of new electricity connections makes Kenya a good benchmarking hub for other economies.
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The number of Kenyans connected to the electricity has nearly tripled over the last four years to 33 million, spurring economic activities in satellite towns and improving living conditions.

Vision 2030 Delivery Secretariat said today this is arguably Kenya’s fastest connection rate in 50 years since in 2013 only 12.3 million people were connected to the grid.

The improved connectivity, powered by the government’s last mile electricity connectivity drive, has since opened up sleepy towns and converted them into sustainable economic hubs that are helping to improve living conditions for most Kenyans.

“More satellite towns have sprung up to spark economic activities in most parts of the country. This should result in significant poverty reduction and improved inclusive growth,” said Vision 2030 Delivery Secretariat, Director General, Dr Julius Muia.

Official government statistics show that 20.2 million more Kenyans have benefited from electricity over the last four years pushing current electricity access rate to 65% from 27% in 2013.

“The unprecedented number of new electricity connections makes Kenya a good bench-marking hub for other economies in the East African region on how to boost socio-economic growth in sleepy towns,” said  Dr. Muia.

The Government, through support from international lenders, has financed the last mile connectivity to the tune of Ksh96 billion in line with Vision 2030’s aim of achieving universal access to electricity by 2022. To access electricity under the last mile connectivity initiative, Kenyans are required to pay a negotiated rate of Ksh15,000, a large reduction from the previous rate of Ksh35,000.

The lower and more affordable charge is helping the government achieve its target to reach 70 percent of households across the country by end of 2017.

Earlier in March, National Treasury signed a Ksh20 billion financial package with European Investment Bank, European Union and French government for completion of the third phase of the last mile Connectivity project.

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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