Kenya Power signs Sh1.13 billion contract deal

Kenya Power on Thursday signed a Sh1.13 billion contract with two companies for installation of substations and distribution lines in Western, Nyanza, Eastern and Mount Kenya regions, to increase access to electricity.

The deal was signed between the power distributor and KEC International India Limited and Siemens of India, and will be financed from a loan advanced to Kenya Power by the World Bank.

“Kenya Power has received Sh8.5 billion from the World Bank out of which Sh1.13 billion will be used to implement various distribution projects through the Kenya Electricity Expansion Project, which will help extend the country’s transmission grid by providing alternative feeders,” said Joseph Njoroge, CEO Kenya Power.

It is part of the Energy Sector Recovery Project (ESRP) that was set up in 2003 with assistance from the global bank aimed at rehabilitating and reinforcing existing transmission and distribution network.

So far, ESRP has attracted Sh26 billion funding from the World Bank and other lending partners, which also includes Sh6 billion from Kenya Power.

Under the contract, KEC will establish substations in 9 satellite areas within the Nairobi region at a cost of Sh471 million.