Nairobi — Kenya Power is set to receive Sh3.6 billion loan from the French Development Agency (AFD) and the European Union (EU) to connect about 300,000 electricity customers through the Stima Loan programme in the next four years.
The company's Managing Director Ben Chumo says the first tranche of the loan facility amounting to Sh480 million will be disbursed in the next two months and will mainly benefit applicants for single phase electricity connections whose quotations do not exceed Sh35,000.
Chumo said the Stima Loan programme follows a successful pilot project which begun in 2010 which has seen more than 50,000 Kenyans benefit as at June 2014 at a total cost of Sh1.2 billion.
"Stima Loan is one of the initiatives spearheaded by the company in collaboration with the government, AFD and EU to ease the cost of power connections and help accelerate access to electricity by more Kenyans in line with the country's development vision," Chumo said.
Managed as a revolving fund, he said, Stima Loan customers will pay a 20 percent upfront deposit and repay their loan within a period of 24 months with a five percent administration fee charged on the loaned amount.
"The period of disbursing subsequent Stima Loan tranche will depend on the rate of loan uptake," he stated.
The company has also partnered with local banking institutions including Equity Bank and National Bank of Kenya under different terms for ease of financing for its customers.