Sh6.4bn to help light up the country

Kenya has received a Sh4.6 billion (euro 4.5 million) grant for a revolving fund to lend to those in need of power connection.

According to Kenya Power and Lighting Company (KPLC) the French Development Agency (AFD) grant is to be used to lend to the low end society.

The firm’s spokesman Migwi Theuri, said the national transmission and distribution utility is required to ensure the fund revolves and that customers repay loans.

“Apart from euro 4.5 million from AFD, there is also another portion of euro 1.5 million that has been advanced for Rural Electrification Agency (REA) clients.

“Management of both funds will be undertaken by KPLC,” he said. A strict criteria has been put in place to ensure deserving customers benefit from the fund.

It also looks at the income levels, amount of monthly power consumption per household which should not exceed 300 units. The criteria looks at the applicant’s repayment ability.

Committees that meet on regular basis have been set up in the regions to vet people and recommend to the fund manager deserving cases.

After a customer has been vetted and approved and having met the minimum down payment of at least 20 per cent of the capital contribution, and signed the loan agreement, the manager draws the balance from the fund and pays to the capital contribution.

“This ensures that capital contribution is paid in full and sets precedent for the other processes towards connection of electricity to the respective customer proceed,” said Mr Theuri. “Currently, the fund is targeting clients within transformer maximisation.

Customers with quotations but who are not able to pay the same in one lump sum should contact the nearest KPLC office,” he said.

The project started a month ago and has managed to advance loans to 120 customers valued at Sh2.844 million. About 1,000 applications are at different stages of evaluation, he said.

Meet the set target

Mr Theuri said that KPLC has also managed to meet the target set by the Ministry of Energy for connecting new customers to the national grid. “We connected 214,488 new customers in the financial year that ended on June 31, 2010,” he said.

The firm has been connecting at least 200,000 new clients annually for the last four years. KPLC is encouraging customers to apply for this loan as it is interest free and has a long repayment period, said Mr Theuri.