How multi-billion investments are powering rural electrification in Kenya

The government has connected over 1.18 million new households to the national grid since 2022 as part of a multi-billion shilling investment to expand electricity access, according to official government sources.

The report details that 360,909 of these connections were made directly through the Last Mile Project, which aims to provide power to previously underserved rural areas.

Regional investments highlight the scale of the project. In Kitui County, a combined Sh2.19 billion was invested between 2022 and 2024 to connect 15,966 households. 

Funding for the Kitui connections was provided by a partnership between the Agence Française de Développement (AFD)/European Union (EU) and KPLC, which contributed Sh1.17 billion to connect 11,741 households. 

The government, through the Rural Electrification and Renewable Energy Corporation (REREC), allocated Sh1.1 billion for 4,101 households, while KPLC used an additional Sh20.9 million from its internal funds to connect 124 households.

Similarly, nine counties in the Mt. Kenya region have seen an investment of over Sh7.3 billion over the last three years.

This funding led to 88,354 new household connections across Embu, Meru, Nyeri, Kirinyaga, Murang'a, Laikipia, Nyandarua, Tharaka Nithi, and Kiambu counties. 

The investment was jointly funded by Sh3.78 billion from AFD/EU/EIB, Sh523.9 million through JICA-KPLC, and Sh2.99 billion from the government via REREC. 

Meru County received the largest share, with Sh1.96 billion connecting over 26,000 households, followed by Nyandarua with Sh1.26 billion.

Alongside expanding access, the report notes significant improvements in grid stability and reliability. 

Over the past three years, Kenya has reduced both the frequency and duration of power outages. These improvements are attributed to strategic investments, including expanded generation by KenGen, transmission modernisation by KETRACO, and specific upgrades such as the Gogo Generation Plant and the Odino-Muhoroni line. 

As a result, Kenya's grid is now ranked among the most stable in Sub-Saharan Africa, according to the Ministry of Energy.

Looking ahead, the government plans to launch the next stage of the project. A Sh4.07 billion AFDB Phase 3 expansion is set to extend power to more underserved wards in the Mt. Kenya region, targeting schools, health centres, and cottage industries. 

The future focus of the national electricity strategy will be on reliability, affordability, and innovation through smart grids and renewable energy integration.