World Bank aids kenya's electricity

Added On April 4, 2015

The World Bank has approved 457.5 million U.S. dollars to scale up electricity access and help consumers enjoy better quality of electricity services in Kenya.

The bank said the funds will benefit more than 630,000 Kenyans from access to electricity, and electricity distributor Kenya Power will be financially stronger.

 World Bank Country Director for Kenya Diarietou Gaye said modern, reliable electricity will improve the quality of life of Kenyans and underpins enhanced competitiveness of the country's economy.
The amount includes an International Development Association, or IDA, credit of 250 million dollars, an IDA guarantee of 200 million dollars and a 7.5 million dollars grant from the Strategic Climate Fund-Scaling up Renewable Energy Program.
The IDA guarantee will enhance Kenya Power's credit quality and enable it to raise about 500 million dollars of new commercial debt with lower interest rates and longer tenors to replace existing debt that is placing a heavy burden on the company.
The IDA Guarantee will allow the electricity distributor to significantly reduce its financing costs, improve liquidity and continue investing in improving the quality and coverage of its services.
Electricity is a massive challenge in Kenya.
In general, only 25 percent of people in Kenya have access to electricity.
But in rural areas, that number drops to 5 percent. 
Kenya has already put in place projects to improve power supply such as the wind power and geothermal among others.