Kenya: AfDB to meet on cheap power loan
6 May 2014
The first batch of funds meant to subsidise new power connections is expected in September. The government hopes that its proposal to the African Development Bank will get board approval during the bank´s meeting in September.
"We expect that we will get approval for that project and we should be seeing realisation of the first batch of the loan, which will go a long way in solving that problem of connectivity," said said KenGen´s managing director Eddy Njoroge.
The ministry of Energy and Petroleum is seeking $800 million from bilateral lenders such as AfDB and the World Bank to implement its ambitious "last mile connectivity" project that will see Kenya Power enhance power distribution infrastructure to connect new domestic customers at the current Sh35,000.
The initial funding will be to the tune of $160 million and will be used to implement the first phase of the project. It will take five years to absorb the entire loan.