Kenya Power implements 50% deduction on token purchases for Last Mile connectivity loans

Kenya Power has begun recovering outstanding Last Mile Connectivity loans from customers, a move that has sparked questions after users noticed significant differences in units received from similar token purchases.

The issue emerged after a customer observed that two separate Sh500 electricity token purchases under different meters yielded markedly different units.

One purchase returned 19.4 units, while the other delivered only 9.7 units, prompting concern over the sudden drop.

In response, Kenya Power explained that the affected meter had an outstanding debt under the government-backed Last Mile Connectivity Programme, which is now being recovered directly through token purchases.

Under this arrangement, half of every electricity purchase is channelled towards repaying the connection loan.

For example, a Sh500 top-up results in approximately Sh250 being deducted for debt recovery, with the remainder used to purchase electricity units.

This is before other statutory deductions are applied, further reducing the final number of units credited.

The Last Mile Connectivity Programme, a government-backed initiative launched in 2015, was designed to reduce the cost of electricity connections and expand access across the country.

Customers who benefited from subsidised connections are required to repay part of the connection cost over time through their electricity consumption.

The programme is jointly implemented by Kenya Power and the Rural Electrification and Renewable Energy Corporation (REREC).

Kenya Power focuses on maximising the use of existing distribution transformers, while REREC is responsible for expanding medium and low voltage lines to improve rural electrification.

Initially rolled out to boost universal electricity access, the initiative primarily targeted low-income households, as well as rural and peri-urban areas where connection costs had previously been prohibitive.

Since its launch in 2015, the programme has significantly increased grid connectivity across the country. By 31 October 2022, over 1,039,143 customers had been connected to the national grid.