This archive report was first published on 26 November 2019.
February 2016 marked a significant moment for residents of Poroko Village when Energy Cabinet Secretary Charles Keter announced that their homes would be connected to electricity without the need for application. This was part of the Last Mile project, aimed at ensuring affordable electricity to households.
The project, which aimed to achieve over 70 per cent connectivity by 2017 and universal access by 2020, was a bold initiative. However, it has since become a costly blunder for Kenya Power, the power utility firm.
According to former acting Chief Executive Jared Othieno, the project was responsible for the financial mess the firm is in, at least in part. He noted that fraud by contractors was prevalent, informing the decision to cancel all the tenders and vet others.
Today, Kenya Power is worth Sh6.4 billion, a significant decline from its previous value of Sh55 billion. The firm is heavily indebted, partly due to heavy investments in an electricity network that has little value.
Investors, including the public, have lost nearly Sh50 billion over the last ten years in a decline that accelerated after 2013. Maintenance costs have surged, helped by sub-standard equipment, including transformers, with insiders revealing that there are at least 20 incidents of failure daily.
Former Energy Regulatory Commission Chairman Hindpal Jabbal said the Last Mile project caused more problems for the power utility firm as newly-connected households consume minimal electricity. He noted that the massive electricity connection drive had also created an opportunity for fraud, including shoddy workmanship.
