NAIROBI, KENYA IFC, a member of the World Bank Group, last week launched a new program with Kenya Power to assist the company in lowering its costs and better serve customers while reducing its environmental impact.

The new program follows a recent agreement between IFC and Kenya Power to reduce operational inefficiencies which are costly and harmful to the environment.

Energy losses within the Kenya Power network were more than 18% in fiscal year 2013.

The rate compares well to regional utility companies, but less favourably against a broader sample of international companies. The company sees a long-term opportunity to bring losses down to between 8-10 percent, on par with peer companies in South Africa and Western Europe.

IFC will work with Kenya Power to build its capacity to identify, plan and mobilize finance for investments that will increase the efficiency of electricity distribution in Kenya and help the company manage future losses. Dr. Ben Chumo, Kenya Power's Acting Managing Director and Chief Executive Officer said, "Kenya Power is committed to managing operating costs which will keep electricity rates affordable and allow us to better serve our more than 2.3 million customers across Kenya. IFC is assisting us to identify and undertake the most cost-effective measures to help make this a reality."

Oumar Seydi, IFC Director for Eastern and Southern Africa, said, "IFC has set a strategic priority on helping companies find solutions that reduce their impact on climate change. In Sub-Saharan Africa, operational inefficiencies in utilities reduce competitiveness, slow the pace of expansion, and create added stress on the environment."

Operational inefficiencies in the electricity sector in sub-Saharan Africa are estimated at more than $3 billion annually.

IFC's Utility Efficiency in Africa Program is also working to reduce the amount of greenhouse gas emissions.