State settles on 14 firms to drive off-grid electrification
By Herald Aloo, June 30, 2022
The government has selected 14 companies to implement Kenya Off-grid Solar Access Project (KOSAP) for under-served and low-density counties. The Ministry of Energy yesterday unveiled the list as government rushes to fulfill its agenda of universal access to electricity by 2026 under the Third Medium Plan.
Selected firms are set to receive Sh390 million and is meant to help establish sustainable supply chains for the marketing and sale of solar home systems (SHS) in 14 counties targeted by the project.
“We expect the 14 companies to diligently deploy adequate resources to ensure the combined target set for them. The Ministry of Energy will disburse Sh390 million to the 14 companies over the same period that the sales are made, and have been verified through an independent process,” Energy Principal Secretary Gordon Kihalangwa said.
The amount is part of the five-year Sh15 billion project funded by World Bank and being implemented by the Ministry of Energy, Kenya Power and Lighting Company and Rural Electrification and Renewable Energy Corporation since July 2017.
Among the companies contracted include MS M-Kopa Solar Limited, MS Equity Bank Limited, and MS Bboxx Capital Limited which is also mulling plans to enter the Kenya LPG market soon. It is expected that over 122,000 SHS sales will be achieved within the next 12 months out of the 250000 SHS being targeted by the initiative.
The 14 firms will add to the already authorised 10 other solar service providers and 10 Clean Cooking Solution Providers who have been in operation in the targeted counties since June 2020.
Solar energy
So far, the 10 Solar Service Providers have sold around 96,000 solar home systems, connecting over 400,000 people using electricity through solar energy.
Kenya Off-grid Solar Access Project is seeking to hook 277,000 households of 1.3 million people in the targeted counties by constructing about 137 mini-grids, connecting at least 387 public facilities to electricity through standalone solar systems as well as retrofitting 380 water boreholes with solar water pumps.
Under the project, West Pokot, Turkana, Marsabit, Samburu, Isiolo, Mandera, Wajir, Garissa, Tana River, Lamu, Kilifi, Kwale, Taita Taveta, and Narok are expected to be prioritised in what is considered critical to fighting poverty.
Kenya power is working on two components; the Sh4 billion component 1 for mini-grids systems, and Part A of the Sh4 billion component 3 for standalone solar systems and solar water pumps for community facilities.