IFC invests in Kenya Power to electrify half a million homes
Kenya Power's expansion responds to greater demand for electricity as Kenya's economy eyes middle-income status
Nairobi, Kenya, August 13, 2012 — IFC, a member of the World Bank Group, is providing a $50 million loan to Kenya Power Lighting Co. to help the national power distributor expand its network to reach over half a million new households by 2014, while reducing losses and increasing the supply of reliable electricity.
Kenya Power's expansion responds to greater demand for electricity as Kenya's economy eyes middle-income status. The Kenyan government announced a target of 40 percent household access to power by 2020, while reducing the gap between urban and rural areas.
During the past three years, the company has been injecting capital to continue extending the power grid as it accelerates its connectivity rate. Kenya Power connected over 300,000 new customers in the last financial year alone.
The $50 million is the beginning of long-term cooperation between IFC and Kenya Power, possibly followed by further tranches to help the company implement 42 power projects in Nairobi and its environs.
The expansion will also bear fruit for Kenya's climate change agenda. Alongside the investment, IFC's resource efficiency team will provide advisory services to Kenya Power on how to reduce power losses. Even a one percent drop in power loss leads to massive energy savings, cutting Kenya's greenhouse gas emissions by 55,000 tons per year.
IFC and Kenya Power are working together to develop measures that will enable the company to save energy through more efficient energy use.
Increasing access to power is at the heart of IFC's strategy for infrastructure development in sub-Saharan Africa. IFC invested $1 billion in infrastructure projects in Africa in fiscal year 2012, up from $200 million five years ago.