Kenya - Last Mile Connectivity Project III (AFDB-P-KE-FA0-021)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kenya
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 29, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Kenya
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 110.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 110.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 220.68 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Mar 2, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AfDB, the Last Mile Connectivity Project III aims to increase on-grid electricity access for households, social-based infrastructure facilities, and micro, small and medium-sized enterprises. It is a follow-up to the first and second phases of the last mile connectivity operations (i.e., LMCP I and LMCP II) financed by the African Development Fund (ADF) and the African Development Bank (ADB), respectively, and is directly aligned with the United Nations Sustainable Development Goal (SDG) 7 of ensuring access to affordable, reliable, sustainable, and modern energy for all.

The third phase of the Last Mile Electricity Connectivity Project is an infrastructure development intervention that will increase access to adequate, affordable, and reliable electricity for households and public institutions as well as micro, small and medium-sized enterprises (MSMEs) thereby providing an enabling environment for the realization of Vision 2030. The project comprises five main components namely: (i) system reinforcement, (ii) grid extensions comprising densifications, intensifications, and last-mile connections, (iii) project administration and management, (iv) Institutional support and capacity building and (v) Implementation of the Resettlement Policy Framework (RPF) and Environmental and Social Management Framework (ESMF).

Overall, the Project targets 150,047 last-mile electricity connections in the six-year implementation period in the rural and peri-urban areas in 45 counties throughout the country (excluding Nairobi and Mombasa which are primarily urban and with electricity access rates of over 80 percent).

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AfDB categorized the project risks as follows -
Environmental Category: 2
Climate Safeguards Categorization: 2

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the company's website, the Kenya Power and Lighting Company PLC (Kenya Power) owns and operates most of the electricity transmission and distribution system in the country and sells electricity to over 8 million as at end of June 2020.

The Government has a controlling stake at 50.1% of shareholding with private investors at 49.9%. Kenya Power is listed on the Nairobi Securities Exchange.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - The Kenya Power and Lighting Company Limited Contractor Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AfDB Team Leader:

Andrew Muguwa
Email: a.muguwa@afdb.org

Implementing Agency - Kenya Power:

Phone: +254 203201000
Email: customercare@kplc.co.ke
Website: https://kplc.co.ke/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/ 

How it works

How it works