Over 180,000 households targeted in latest electrification plan as state rolls out Last Mile Phase III Project
The Cabinet also approved the Olkaria VII Geothermal Power Project, which is projected to inject 80.3 megawatts of clean and reliable baseload electricity into the national grid by June 2027.
Over 180,000 households will be connected to electricity as the government rolls out the third phase of the Last Mile Connectivity Project, targeting underserved regions.
The programme, backed by the African Development Bank and the Canada-AfDB Climate Fund, will prioritise counties with limited access to electricity, addressing challenges such as underutilised transformers and weak rural infrastructure.
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The initiative was endorsed during a Cabinet meeting chaired by President William Ruto at State House, Nairobi, on Tuesday.
Phase III of the project will facilitate 180,500 new electricity connections, benefitting households, schools, health centres, and micro, small and medium-sized enterprises (MSMEs). It will also strengthen Kenya’s power distribution grid to improve supply reliability.
According to the Cabinet, the rollout seeks to overcome high connection costs and enhance power access in areas that have not previously benefited from similar programmes. In addition, it will make use of idle transformers and reinforce strained substations to support consistent electricity delivery.
“The project is expected to unlock significant socio-economic benefits, including the provision of clean, affordable energy for marginalised communities, reliable health services, enhanced digital learning and support for over 10,500 MSMEs through access to three-phase power,” the Cabinet said.
The Cabinet also approved the Olkaria VII Geothermal Power Project, which is projected to inject 80.3 megawatts of clean and reliable baseload electricity into the national grid by June 2027.
According to the dispatch, the plant will utilise 19 production wells, with an additional seven planned over its 25-year operational life. It will also feature reinjection of geothermal fluids to ensure long-term sustainability.
“Olkaria VII is designed to meet Kenya’s rising energy demands driven by population growth, industrial expansion in Special Economic Zones, and the rapid uptake of electric vehicles,” the Cabinet noted.
With national power demand expected to grow by 100 megawatts annually and electric vehicle energy needs projected to reach 334 megawatts by 2032, the geothermal facility will play a crucial role in easing pressure on the grid. Kenya’s industrialisation strategy is also projected to require more than 1,000 megawatts of new capacity by 2032.
The project, to be implemented in collaboration with the Government of Japan and the European Investment Bank, aims to reduce reliance on expensive and polluting fossil fuels and reinforce Kenya’s status as a regional leader in renewable energy.
Separately, the Cabinet gave the green light for the launch of the National Youth Opportunities Towards Advancement (NYOTA) Project in August 2025.
A joint initiative of the Government of Kenya and the World Bank, NYOTA targets more than 820,000 vulnerable and unemployed youth, including persons with disabilities, by enhancing employability, recognition of skills, and access to decent work.
The programme is part of the Bottom-Up Economic Transformation Agenda and is structured into four pillars, including paid on-the-job training, entrepreneurship support, Recognition of Prior Learning (RPL) certification and other youth empowerment components.
So far, the Cabinet said over one million applications have been received. The current application window for the On-the-Job Experience component runs from July 11 to August 15, 2025, targeting 90,000 youth for three to six-month placements with various employers.
Participants will receive monthly stipends of Sh6,000, deposited into Haba Haba savings accounts.
The Cabinet described NYOTA as a flagship youth employment programme that will expand opportunities for Kenya’s young people and support the government’s agenda for inclusive economic transformation.
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