Kenyans in rural and far-flung dwellings will have to wait longer to be connected to the main electricity grid after Treasury cut the budget for last-mile connectivity by Sh3 billion.
The adjustments, which saw the budget slashed from Sh4 billion to Sh890 million, will be effected in the budget for the financial year starting July 1.
The Energy ministry told Parliament that they have trouble funding the deficit of Sh3.11 billion saying the situation could reverse the pace of attaining universal electricity access by the year 2030.
The huge budget cut was in respect of allocations to the Rural Electrification and Renewable Energy Corporation (Rerec).
Energy Cabinet Secretary Davis Chirchir said the question that arises is whether the government was withdrawing its social responsibility of supplying power to rural households.
“The Last Mile project is pushing development out of urban areas to rural areas to spur growth. Rerec is critical and they should get proper funding,” he said.
In the largely World Bank-funded Last Mile Connectivity, customers were connected to the mains grid at Sh15,000.
The normal connections cost for those within the range of 600m from a transformer is about Sh36,000.
The cuts have affected the majority of the over 900,000 customers that Rerec sought to connect next financial year through the last mile drive.
Chirchir said the cuts would also affect the government’s plan to free Kenya Power from the burden of connecting power to Kenyans.
“We must look at how to support the last mile programme and reduce interference of government employing Kenya Power in the connection of customers.”
He spoke while appearing before the Energy committee chaired by Mwala MP Vincent Musau, urging the committee to restore the allocation.
It emerged that the Treasury has also effected deep cuts on the budget for connectivity subsidy, which is usually reimbursed to Kenya Power hence the cheaper connection costs.
The money also caters for the maintenance, rehabilitation and upgrade of the generators supplying power in the off-grid regions.
