The federal government has permitted the withdrawal of Sh3.5 billion to facilitate the settlement of excellent obligations below the Final Mile Connectivity Venture (LMCP), signalling a renewed push to advance the initiative aimed toward bettering electrical energy entry for rural households.
A report by the Workplace of the Controller of Finances (CoB) exhibits that Nationwide Treasury Cupboard Secretary John Mbadi permitted the discharge of Sh3.5 billion to the State Division for Vitality on January 29, 2026, to settle loans and grants owed by Kenya Energy below the mission.
Kenya rolled out the LMCP in 2015 with monetary help from the African Improvement Financial institution (AfDB), the World Financial institution, the Japan Worldwide Cooperation Company (JICA), the French Improvement Company (AFD), the European Union and the European Funding Financial institution.
“To facilitate Kenya Energy meet excellent obligations below the Final Mile Connectivity Venture (Mortgage income Sh2.5 billion, Grant income Sh400 million, Mortgage A-I-A (Appropriations in Support) Sh500 million, Grant A-I-A Sh100 million),” Controller of Finances Margaret Nyakango mentioned of the quantity permitted by Mr Mbadi for the State Division for Vitality.
The LMCP goals to enhance the connection of Kenyan households to the nationwide grid and help the federal government’s aim of reaching common electrical energy entry.
The federal government has been implementing the programme by means of Kenya Energy and the Rural Electrification and Renewable Vitality Company (Rerec).
Beneath the programme, households positioned inside 600 metres of an earmarked transformer are linked to electrical energy at a subsidised price of about Sh15,000. Beneficiaries initially paid Sh30,000 for the connection.
Within the yr ended June 2025, Kenya Energy reported 163,092 Final Mile prospects.
“Since its inception, the Final Mile Connectivity Venture (LMCP) has been rolled out in 5 mission phases, progressively increasing electrical energy entry to underserved communities all through the nation,” the ability utility mentioned in its report.
Rural attain
The report exhibits that the programme has considerably expanded electrical energy entry throughout the nation, with the primary three phases alone connecting greater than 900,000 households at a mixed price of about Sh50.3 billion.
The primary part, funded by the AfDB, linked 314,200 prospects throughout all 47 counties and was accomplished in 2020.
The second and third phases, funded by the World Financial institution and AfDB respectively, had been accomplished in 2022 and added an extra 598,500 connections throughout 46 counties.
Ongoing phases launched in 2023 are concentrating on an extra 260,000 prospects by means of funding from the European Union, European Funding Financial institution, French Improvement Company and Japan Worldwide Cooperation Company, with a mixed funding of Sh24.2 billion.
A sixth part funded by the AfDB commenced in 2025 and focuses on strengthening the electrical energy community by means of substations and medium-voltage traces whereas benefiting an estimated 150,000 prospects.
Individually, the federal government, by means of Kenya Energy and Rerec, has linked greater than 163,000 prospects below an ongoing programme masking all 47 counties.
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