The government has approved the withdrawal of Sh3.5 billion to facilitate the settlement of outstanding obligations under the Last Mile Connectivity Project (LMCP), signalling a renewed push to advance the initiative aimed at improving electricity access for rural households.
A report by the Office of the Controller of Budget (CoB) shows that National Treasury Cabinet Secretary John Mbadi approved the release of Sh3.5 billion to the State Department for Energy on January 29, 2026, to settle loans and grants owed by Kenya Power under the project.
Kenya rolled out the LMCP in 2015 with financial support from the African Development Bank (AfDB), the World Bank, the Japan International Cooperation Agency (JICA), the French Development Agency (AFD), the European Union and the European Investment Bank.
“To facilitate Kenya Power meet outstanding obligations under the Last Mile Connectivity Project (Loan revenue Sh2.5 billion, Grant revenue Sh400 million, Loan A-I-A (Appropriations in Aid) Sh500 million, Grant A-I-A Sh100 million),” Controller of Budget Margaret Nyakango said of the amount approved by Mr Mbadi for the State Department for Energy.
The LMCP aims to improve the connection of Kenyan households to the national grid and support the government’s goal of achieving universal electricity access.
The government has been implementing the programme through Kenya Power and the Rural Electrification and Renewable Energy Corporation (Rerec).
Under the programme, households located within 600 metres of an earmarked transformer are connected to electricity at a subsidised cost of about Sh15,000. Beneficiaries initially paid Sh30,000 for the connection.
In the year ended June 2025, Kenya Power reported 163,092 Last Mile customers.
“Since its inception, the Last Mile Connectivity Project (LMCP) has been rolled out in five project phases, progressively expanding electricity access to underserved communities throughout the country,” the power utility said in its report.
Rural reach
The report shows that the programme has significantly expanded electricity access across the country, with the first three phases alone connecting more than 900,000 households at a combined cost of about Sh50.3 billion.
The first phase, funded by the AfDB, connected 314,200 customers across all 47 counties and was completed in 2020.
The second and third phases, funded by the World Bank and AfDB respectively, were completed in 2022 and added a further 598,500 connections across 46 counties.
Ongoing phases launched in 2023 are targeting an additional 260,000 customers through funding from the European Union, European Investment Bank, French Development Agency and Japan International Cooperation Agency, with a combined investment of Sh24.2 billion.
A sixth phase funded by the AfDB commenced in 2025 and focuses on strengthening the electricity network through substations and medium-voltage lines while benefiting an estimated 150,000 customers.
Separately, the government, through Kenya Power and Rerec, has connected more than 163,000 customers under an ongoing programme covering all 47 counties.
