VENTURES AFRICA – Kenya Power has announced a bold move to invest Sh10.45 billion ($109 million) in setting up 36 new power substations with the central aim of strengthening the country’s electrical power networks hitch currently draws majorly from hydro and thermal sources. This disclosure was made by Ben Chumo, CEO of the utility company.
The power sector in the East African country has been ridden with a number of structural challenges including low investments, high cost of rural electrification, limited distribution capacity which worsens during times of peak demand, grid system losses and over reliance on hydro sources. The net effects of these challenges includes the rationing of power in times of drought and the use of expensive power generating techniques compared to the likes of South Africa and Egypt.
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The new substations will be located in 23 counties across the country and boost power supply to both domestic and industrial customers, consequently this will serve as a springboard for further economic growth.
Speaking during a press conference in Nairobi, Dr Chumo stated that the substation projects will be implemented under the umbrella of the Kenya Electricity Modernization Project (KEMP) while funding will come from the company’s internally generated funds and loans.
“KEMP is a government-led initiative being implemented from this financial year with the objectives of increasing the transformation capacity by 412 MVA and developing 724 kilometres of medium voltage lines thus increasing the number of households and businesses with access to electricity and improving the quality of electricity service in targeted areas,” he said.
According to Dr Chumo, KEMP will seek to establish new primary substations and associated lines while ensuring existing ones in certain identified locations around the country are upgraded. Among other targets, the project will entail the completion of automation projects for Mombasa and Nairobi while rolling out same in Kisumu, Thika, Nakuru, Eldoret and Nyeri.
Kenya Power hit a record of 443,000 connections established last year, this ramped up its customer base to its present level of over 3 million customers. The company seeks to acquire one million customer accounts in subsequent years after the current financial year ends in June.
