Thousands of Kenyans from rural households are set to benefit from a huge electrification boost as Kenya and the United Arab Emirates (UAE) edge closer to agreeing on a Ksh187 billion aid deal.
The support, worth an estimated Ksh197 billion (USD 1.5 billion), will see Kenya's long-running Rural Electrification Programme sped up.
On Tuesday, April 15, Prime Cabinet Secretary Musalia Mudavadi announced that the funding proposal was in its final stages of negotiation.
According to Mudavadi, the National Treasury and the Office of the Attorney General were finalising the legal frameworks to pave the way for the implementation of the proposal in a move which will fast-track the electrification programme, lighting up thousands of Kenyan homes sooner rather than later.
Mudavadi announced the new development after a high-level engagement with Lana Nusseibeh, the UAE’s Assistant Minister for Political Affairs.
“We discussed the UAE’s proposed budgetary support facility of USD 1.5 billion to support Kenya’s Rural Electrification project,” Mudavadi confirmed. “The discussions are at the final stages, and we hope to finalise soon.”
The Rural Electrification Programme, which has been in existence since 1973, aims at connecting off-grid villages to the national electricity network. Despite its long-standing history, the scheme has faced significant challenges over the years, including inexplicable losses amounting to more than Ksh9 billion in the year ending June 2023.
Financial backing from the UAE comes at an opportune time, especially with many parts of rural Kenya still yet to be connected to the national grid, more than 40 years since the electrification programme was birthed.
According to data from AfroBarometer, Kenya has made significant strides in electricity provision, going above the 70 per cent mark.
The numbers have, however, plateaued since 2021, with access to electricity in the country remaining unchanged at around 76 per cent since 2022.
Besides the electrification deal, Mudavadi also revealed that Kenya and the UAE had agreed on a joint finance and investment framework targeting up to Ksh65.7 billion in key sectors of the economy.
The initiative, led by Abu Dhabi Developmental Holding Company (ADQ), aims at pumping fresh capital into sectors like agriculture, manufacturing, digital economy projects and infrastructure.
