Firm Gets $200m For Power Grid

Kenya Power has secured a 200 million dollars loan from the
World Bank’s International Finance Corporation (IFC) to invest in its grid, it
said last Wednesday.

The firm is the sole transmission and distribution utility
in East Africa’s largest economy, where blackouts are common due to generation
shortfalls and an ageing grid.

Chief Executive of Kenya Power, Joseph Njoroge said the
first tranche of 50 million dollars, which was received immediately, would be
invested in and around Nairobi.

He highlighted that “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
relief to customers such as reduction of outages,” he said while signing the
deal.

Jean Philippe Prosper, IFC’s East and Southern Africa
Director stated that Kenya would receive 300-400 million dollars for various
projects in the current fiscal year (2012/2013).

Like other African states, the country is required to invest
huge sums of money every year to meet growing demand for power, amid robust
economic activities.

Kenya Power connected its two million customers in June,
under its aim of connecting 200,000 new customers to the grid every year,
Njoroge said.