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World Bank’s Sh10bn deal to light up homes
From left: Energy CS Opiyo Wandayi, President William Ruto, and the Principal Secretary Alex Wachira look at mini grid presentation ahead of the contract signing for Improved Access to Electricity through Mini-Grid and Stand-Alone Solar Systems under the Kenya Off-Grid Solar Access Project in Nairobi County on February 19, 2025.
Thousands of households across 14 counties countrywide will be connected to solar power in the last phase of a Sh9.4 billion World Bank-backed project, meant to light up communities that are not connected to the national grid.
This follows the signing of 14 contracts between Kenya Power, Rural Electrification and Renewable Energy Corporation and private firms, to build 113 solar-powered mini-grids that will supply electricity to homes. The 14 signed contracts are worth Sh9.4 billion.
Six deals, worth Sh438 million were also signed for the installation of stand-alone solar systems in 343 public schools, health facilities, and administrative offices. The Kenya Off-Grid Solar Access Project (Kosap) was rolled out in 2018 and is set to end by June this year.
It targets to enhance electricity access to homes and public institutions in Turkana, Marsabit, Samburu, Isiolo, Mandera, Wajir, Garissa, Tana River, Lamu, Kilifi, Kwale, Narok, West Pokot and Taita Taveta counties.
Kosap—funded by the World Bank— is part of the larger plan to ensure universal electricity coverage, and boost the 24-hour economy besides improving the security of areas that are not supplied by Kenya Power.
“By harnessing solar energy, we are providing a sustainable and cost-effective solution that will power underserved communities, stimulate economic growth, and improve livelihoods,” President William Ruto said on Wednesday.
The contracted firms will build the systems and then operate them for an initial period of seven years, after which this (maintenance role) will be reviewed.
Kenya Power sells electricity under the Kosap project. It is not however clear if the tariffs are the same as those that are approved by the energy regulator under the three-year pricing cycle. Kosap, launched in 2018, is meant to tap the vast sunlight available in the 14 counties to connect homes and public institutions. The project is expected to lapse by the end of this year.
The project supports the use of solar technology to drive the electrification of households, enterprises, community facilities, and water pumps.
It (project) also entails the installation of solar water pumps and the distribution of clean cooking stoves to phase out the use of dirty fuels like charcoal and kerosene.
The World Bank allocated $150 million for the Kosap project. This comprises $48 million (Sh6.2 billion at current exchange rates) for stand-alone solar systems and clean cooking solutions for households and $40 million (Sh5.17 billion) for mini-grids for community facilities, enterprises, and households.
A further $40 million (5.17 billion) is for stand-alone solar systems and solar water pumps for community facilities while $22 million (Sh2.84 billion) is for implementation support and building capacity.
