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Kenya and Japan pen Sh2b energy grant

By Noel Wandera
Wednesday, September 30th, 2020
Treasury Cabinet secretary Ukur Yattani. Photo/File
In summary

Kenya and Japan have signed a Sh2.1 billion grant to for improvement of power distribution systems and human resource development.

National Treasury Cabinet Secretary Ukur Yatani said Sh1.9 billion of the funds will be used to upgrade power distribution systems in Nakuru and Mombasa cities, while Sh243.5 million will be available for scholarships to Government Officers to study in Japan and acquire various skills to enhance the service delivery to the country.

Upgrade of the power system in Mombasa and Nakuru will involve installing an additional 109 transformers and extension of the existing power distribution system in the two cities.

The project will greatly improve the power distribution system in the two cities and make the power distribution system more efficient and also help reduce power losses.

With the grant, a total of 140 officers from various fields in the public sector will benefit from scholarships.

Policy loan

So far on a cumulative basis, Japan has granted Kenya financial support amounting to Sh481.34 billion, the most recent being the loan agreement for Health Sector policy loan for attainment of Universal Health Coverage Phase II amounting to approximately Sh8.14 billion in the Covid-19 pandemic war.

Japanese ambassador to Kenya Katsutoshi Komori, who signed on behalf of his country said the electrification rate in Kenya is about 75 per cent, which is below the world average of about 88.7 per cent, adding that the difference in the electrification rate between Nairobi and other cities causes economic disparity.

“The objective of the Project is to improve distribution and stability of electric power supply in targeted areas by introducing low-loss type distribution transformers,” said Komori.

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