Sh383bn to be raised for power

Kenya intends to raise Sh383 billion over the next five years to boost generation, transmission and distribution of electricity.

This comes against the backdrop of rising demand from consumers projected to peak at 2029 megawatts (MW) by 2014.

Demand has been pinned on increased economic growth in the country, currently put at 1,334MW.

“This is why we are drumming up support for investments in the energy sector to help us meet growing demand,” Energy minister, Kiraitu Murungi, told investors and donors during a meeting.

Prospectus

According to The Kenya Electricity Access Prospectus released by the ministry on Wednesday, the Government has committed to raise 46 per cent of the required amount.

This will leave a balance of Sh206 billion to be financed by the donor community and interested private sector players.

“The government alone cannot raise adequate funds to ensure implementation of these strategies. We are, therefore, calling upon our development partners and private sector players to support us in this,” he said.

The plans by the government also come barely a week after completion of a power rationing programme.

The two-month programme was occasioned by drought across the country that led to a reduction in water levels of the electricity generating dams.

In the plans, KenGen together with other independent power producers will require Sh116.4 billion shillings to add 435MW to the national grid.

Newly-formed Kenya Electricity Transmission Company (Kentraco), a government agency is expected use Sh85.5 billion of the funds.

These will cover for new transmission lines to extend the national grid by 2,500 Kilometres and improve on the quality of power distribution.

Enhanced

Power distribution is also to be enhanced through extending current lines by 3,440 kilometres and establishing 63 primary distribution stations.

This will cost an estimated Sh36.2 billion through the Kenya Power and Lighting Company as the implementing body.

The Rural Electrification Programme also aims at connecting 5, 718 rural load centres.

This will also entail connecting an estimated 650,886 households across the country at a cost of Sh86.6 billion.

On Geothermal resources, the government envisions that it would drill 120 wells to provide steam equivalent 500MW.

These will cost Sh58.7 billion to be implemented by the Geothermal Development Company (GDC).

“We are focusing more on Geothermal since we want to go the global green revolution way,” said Mr Murungi.

On Wednesday, France agreed to give Kenya Sh12.7 billion for its energy sector.

Of the amount, Sh7.2 billion will be used to buy two rigs for the geothermal drilling and build capacity of the GDC.

The deal was signed between prime minister Raila Odinga and director general of the French Agency for Development.

At the meeting, various donor partners’ representatives expressed optimism with the government plans and promised support.