Loan pact to ease pain of power connection

What you need to know:

  • A government-commissioned study on the cost of connections is yet to be released.

Potential Kenya Power customers can now access loans from a number of financial institutions.
The company has entered into several agreements aimed at helping customers.
The firm has negotiated with Equity and Family banks, and Stima Savings and Credit Cooperative, to provide would-be clients with the money required to apply for connections.

The loans rates of repayment were, however, not disclosed. “We have already signed up with Equity and Family banks and Stima sacco to provide the credit while the company is in talks with other institutions including AFD of France for additional financing,” Kenya Power managing director Ben Chumo said.

Mr Chumo spoke during a visit to Kisii Governor James Ongwae in his office Monday. Funding for power connections has been a challenge after the government withdrew subsidy that saw two-phase connections fee rise from Sh35,000 to Sh75,000 last year, raising concern that this would result in reduced connections.

A government-commissioned study on the cost of connections is yet to be released.

However, those who want to be connected but are more than 600 metres from a transformer pay many times more — according to market rates.

Kenya Power has been grappling with how to make funds available to potential customers as most cannot afford what is being charged at a go.