Kenya’s quest for universal electricity access has received a major boost following Cabinet approval of Phase III of the Last Mile Connectivity Project. This ambitious initiative, greenlit during a Cabinet meeting chaired by President William Ruto at State House on Tuesday, will bring electricity to 180,500 new households, schools, health centres, and micro, small, and medium enterprises (MSMEs) across the country.
The project, to be implemented in partnership with the African Development Bank (AfDB) and the Canada-AfDB Climate Fund, will prioritise counties with historically low electricity penetration and those that have not benefitted from previous phases of the program.
A key focus of the initiative is addressing systemic barriers that have hindered rural electrification, including high connection costs, underutilised transformers, and inadequate infrastructure in remote areas. The government also plans to optimise idle transformers and upgrade overstretched substations, enhancing the reliability of the national grid.
The socio-economic benefits of the program are expected to be substantial. Rural communities will gain access to clean and affordable energy, healthcare facilities will operate around the clock with dependable electricity, schools will integrate digital learning, and more than 10,500 MSMEs will benefit from expanded access to three-phase power.
In a further push toward clean energy, the Cabinet also approved the Olkaria VII Geothermal Power Project. This strategic development is set to inject 80.3 megawatts (MW) of reliable baseload electricity into the national grid by June 2027. Backed by the Government of Japan and the European Investment Bank, the plant will tap into 19 production wells, with the capacity for seven more over its 25-year lifespan. Geothermal fluid reinjection will ensure environmental sustainability.
The Olkaria VII plant is a timely response to Kenya’s growing energy demands, driven by population growth, expanding Special Economic Zones, and a rising electric vehicle (EV) sector. With national power demand expected to grow by 100 MW annually and EV needs projected at 334 MW by 2032, the project will help reduce reliance on costly fossil fuels and support the country’s shift to a green energy future.
