MPs unlock funds to revive 13 mini-grids in six remote counties
The affected counties, Mandera, Samburu, Wajir, Turkana, Marsabit, and Lamu, will finally see a boost in rural electrification following the Public Investments Committee on Commercial Affairs and Energy’s decision.
Six counties that have struggled for years without electricity are set to benefit after Parliament approved Sh600 million to restore 13 non-functional mini-grids.
The affected counties, Mandera, Samburu, Wajir, Turkana, Marsabit, and Lamu, will finally see a boost in rural electrification following the Public Investments Committee on Commercial Affairs and Energy’s decision.
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The committee, chaired by Pokot South MP David Pkosing, rejected a Treasury proposal to reallocate Sh1 billion from the 2025/26 budget for the Rural Electrification and Renewable Energy Corporation (Rerec), arguing that such a move would disrupt ongoing electrification projects in public facilities.
“We do not agree with the Treasury proposal to relocate Sh1 billion from the Rerec budget because it will affect electrification of public institutions,” Energy PS Alex Wachira said.
The committee convened a roundtable meeting that included Treasury PS Dr Chris Kiptoo, Kenya Power, Rerec, and the Energy and Petroleum Regulatory Authority (Epra) to discuss the Sh30 billion owed to Kenya Power under the Rural Electrification Scheme.
The scheme, funded by the government and implemented by Kenya Power on behalf of the Energy Ministry, provides subsidised electricity to remote areas.
While it is considered sub-economic, where operational costs exceed revenue, the government covers any deficits arising from the program.
PS Kiptoo told MPs that recent measures, including a tariff adjustment, had raised the annual allocation for rural electrification from Sh1.4 billion to Sh2.5 billion, reducing the deficit to Sh25.33 billion by June 2024.
The Treasury has proposed raising the exchequer allocation to Sh1.66 billion in 2025/26 to further reduce the gap.
The committee also reviewed the state of 56 mini-grid generation stations operated by Kenya Power. Of these, 30 hybrid stations (diesel and solar powered) have been underperforming due to faulty lithium batteries and inadequate fuel storage, causing frequent blackouts.
MPs described the mini-grids as “white elephants” after discovering that most had been fitted with the wrong batteries and small diesel tanks, making them ineffective at night.
Following consultations, it was agreed that Rerec would receive Sh4.2 billion to replace defunct mini-grids, with Sh600 million provided immediately.
The funding forms part of a Sh3 billion allocation for the year, which also includes Sh1.4 billion from the Epra levy. The remaining Sh1.2 billion will be prioritised in the next budget cycle.
PS Kiptoo also proposed amending the Energy Act to allow the Epra levy to cover maintenance costs, which is currently not permitted, in a bid to prevent future deficits. Energy PS Wachira emphasised that offsetting Kenya Power’s debt of Sh70 billion against government funds was not a viable solution, insisting instead on structured repayment plans.
The Sh600 million allocation marks a major step in reviving electricity in northern Kenya, promising relief for households, schools, hospitals, and markets that have long operated without power.
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