The World Bank has allocated a $200m loan to Kenya Power for the purposes of developing Kenya’s power grid.
Kenya Power is the only transmission and distribution utility in east Africa’s largest economy, where blackouts are common due to generation shortfalls and an ageing grid.
Reuters reports that Chief Executive Joseph Njoroge said the first tranche of $50-million, which was received immediately, would be invested in and around Nairobi because “there is compelling and urgent need for electricity network improvement”.
“We estimate that implementation of projects to be funded under this financing arrangement will be completed by 2014, thereby bringing the much needed relief to customers such as reduction of outages,” he said while signing the deal.
Kenya Power connected its 2 millionth customer in June this year, under its aim of connecting 200 000 new customers to the grid every year, Njoroge added.
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