Africa: Evaluation of Last Mile Connectivity Project (LMCP) Shows Significant Positive Impact and Need for Productive Use of Electricity

[Deeq A.]

ABIDJAN, Ivory Coast, April 17, 2023/ — An impact assessment of Phase 1 of the Last Mile Connectivity Project in Kenya has established a need for the African Development Bank (www.AfDB.org)-supported initiative to encourage the productive use of electricity by beneficiaries, in addition to basic household consumption.

The study — Impact Evaluation of the AfDB-Supported Kenya Last Mile Connectivity Project, Phase 1 (https://apo-opa.info/3A1yj1k)– finds that “2 to 3 years after connecting households to the grid through the project, electricity consumption by beneficiaries has remained low, with beneficiaries mainly using the electricity for lighting and charging phones.”

The assessment, conducted by the bank’s Independent Development Evaluation unit (IDEV), recommends that the Kenya Power and Lighting Company (KPLC), the implementing agency, should find ways to “stimulate” additional demand for electricity by households and businesses in rural areas.

The African Development Bank financed the study, which was conducted in six counties: Baringo, Kakamega, Kericho, Kitui, Nakuru and Taita Taveta.

Presenting the report’s findings in Nairobi on April 4th, Ustace Ezor, IDEV’s Evaluation Officer, noted that contrary to initial predictions, there was a limited increase in the productive use of electricity. The findings were presented at a roundtable attended by Development Partners, Government officials, and energy sector stakeholders in Kenya, who deliberated over issues raised in the evaluation. They also took stock of the country’s energy sector.

The report recommends programs to link electricity access with income-generating activities such as irrigation services and promoting small businesses.

Responding to the findings, Eng. Anthony Musyoka, Senior Manager, Transmission System Planning, at the Kenya Electricity Transmission Company (KETRACO), said communities must be sensitized on the opportunities to draw more benefits from electricity connection. “There was no sensitization of communities. They need to be sensitized to make them aware that electricity can be used to create wealth, not only for lighting.”

Other points raised included making electricity more affordable and reliable, with the report stating that “a high cost of electricity relative to the household income of beneficiaries undermines access and productive use of electricity”.

According to Eng. Joseph Oketch, Director of Electricity and Renewable Energy, Energy and Petroleum Regulatory Authority, the high cost of the commodity was determined by several factors. “This has more to do with the high cost of generation, transmission cost as well as distribution and supply cost. All these issues need to be addressed holistically,” he added.

The report highlights notable positive impacts of the project; an 83% increase in access to electricity for lighting through the national grid.

It states that the probability of children studying at night increased by 45%, and the grade for secondary school students increased by 34% in beneficiary households. “This speaks to the improved capacity and quality of electricity, considering that most of the counties are now served by the grid,” said Eng. Musyoka.

The significant impact of Phase 1 of the LMCP has resulted in Kenya being a model for other countries in the region, according to Alemayehu Wubeshet Zegeye, East Africa Regional Energy Sector Manager at the African Development Bank. He said: “The model used in Kenya was unique and ramped up the connection in very few years. The program was designed to speed up connection for low-income earners by subsidizing the connection charge upfront,” he explained.

With the connection charges reduced from Ksh. 35,000 to Ksh 15,000 (about $269 to $115) payable in 3-year installments, more rural households were encouraged to apply for connection to the grid.

The LMCP project is a flagship mass electrification program launched by the Government of Kenya to increase access to electricity for low-income groups in rural and peri-urban areas by connecting them to the national grid.

The country intends to connect 17 million households to the national grid by 2030, with nine million being connected currently. Funding from the African Development Bank has seen the Kenya LMCP project connect about 530,000 households so far across 47 counties.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
SOURCE
African Development Bank Group (AfDB)

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