The African Development Bank (AfDB) has approved a significant loan of €101.10 million (approximately $110.8 million) for Kenya, marking a major financial boost for the third phase of the country’s ambitious Last Mile Connectivity Project. This project includes the construction of 13 new substations, set to enhance the national electricity grid and extend it to underserved areas.
This development comes amid concerns raised by Kenya’s Auditor-General over the financial and governance struggles of Kenya Power, the nation’s primary electricity supplier. The Last Mile Connectivity Project, a critical part of Kenya’s infrastructure development, aims to fortify the electricity network by adding substations in 45 of the 47 administrative counties. This expansion will connect an estimated 139,480 households to the grid, translating to electricity access for approximately 543,972 Kenyans.
According to a report by ESI Africa, besides household connections, the project will also link 10,521 small and medium businesses and vital social facilities—including 23 educational institutions, 15 health establishments, and eight water supply facilities—to the national electricity grid for the first time. The AfDB highlights that this expansion will not only reduce reliance on pollutants like fossil and biomass fuels but also contribute to job creation, business opportunities, and enhanced services in the education and health sectors.
“In the long term, the project will enhance the well-being and productivity of society, which will contribute to the socio-economic development promoted by Kenya’s Vision 2030. It will also contribute to the transition to clean energy as households and businesses switch to clean and sustainable energy sources. The project will reduce greenhouse gas emissions by at least 3,440 metric tonnes of carbon dioxide annually,” stated the AfDB.
As of June 2022, Kenya’s grid electricity access stood at 77%, significantly higher than the Sub-Saharan Africa average of 50%. The government is committed to achieving universal electricity access by 2030.
The project will also benefit from an additional $13.17 million loan from the Canada-AfDB Climate Fund (CACF), providing concessional loans for climate change adaptation and mitigation projects.
The Last Mile Connectivity Project (Phase III) is a key component of the AfDB’s 2019–2023 Country Strategy Paper for Kenya. Nnenna Nwabufo, AfDB Group Director General for East Africa, emphasized that the Bank’s support is crucial for enhancing households’ and local businesses’ access to adequate, reliable, and affordable energy. This initiative aligns with Kenya’s Vision 2030, aiming to provide every Kenyan with electricity access.
The success of the first two phases of the Last Mile Connectivity Project, also financed by the Bank, saw more than 1.05 million and nearly 1.6 million people gain grid electricity access, respectively.
