REREC, Lamu partner in Sh20m rural electrification projects

In a collaborative effort to energize rural development, the Rural Electrification and Renewable Energy Corporation (REREC) has inked a partnership with Lamu county, committing a combined total of Sh20 million for electrification projects.

The strategic collaboration, signed Thursday, exemplifies a commitment to fostering sustainable energy solutions in the county, REREC CEO Rose Mkalama said.

Lamu has already earmarked Sh10 million for two subcounties in the ongoing financial year 2023/2024 under the partnership.

In return, REREC through the Matching Fund model, will contribute up to a maximum of Sh10 million doubling the resources available for electrification initiatives.

Lamu Governor Issa Timamy who spoke at the signing of the agreement noted that the strategic focus lies on Lamu West subcounty which boasts 63 per cent arable land.

The decision to prioritize this area stems from the potential to significantly enhance food security.

“The deal that we have signed today to connect Lamu West to the national grid will go a long way to catalyze economic activities, especially in fishing and horticulture, including dairy and crop farming,” Timamy stated.

REREC has a robust track record in Lamu, having completed 24 projects funded by the government at Sh210 million.

In the ongoing financial year, REREC is set to implement projects worth Sh138.2 million.

Notably, REREC will also embark on a project under the Kenya Off-grid Solar Access Project (KOSAP), backed by the World Bank, to solarize 21 boreholes in the county, an initiative estimated to cost around Sh49 million.

The signing of this collaboration framework marks the initiation of a partnership aimed at enabling REREC to fulfil its mandate in the implementation of electrification projects in the county.

Beyond the immediate project, it sets the stage for ongoing cooperation between REREC and Lamu, establishing a framework for the efficient implementation of electrification projects and programs.

REREC, mandated to spearhead Kenya's renewable energy drive and rural electrification projects, has faced financial challenges, primarily relying on Exchequer funding.

To address this, the corporation introduced an innovative participatory approach to financing projects, involving cost-sharing arrangements with the National Constituency Development Fund, counties, and other stakeholders.

The Matching Fund program, operational since the Financial Year 2014/15, according to Mkalama has proven highly successful.

Under the model, the corporation matches contributions from counties and constituencies to a maximum of Sh5 million per constituency.

It has already entered into such an agreement with Makueni, Uasin Gishu, Kitui, Kakamega, Kiambu, Kitui, Vihiga, Busia, Nyandarua, Meru, Nyeri, Embu, Machakos, Kisumu among others, and several constituencies to implement specific electrification projects in their areas.

“This approach enables REREC to implement additional projects by leveraging funds from county governments and other partners,” she noted.

The cumulative impact has been substantial, with electricity connections extended to numerous public facilities and households.

To date, REREC has implemented 1,050 projects for Sh2.8 billion.

Encouraging wider adoption of this approach, REREC encourages counties and MPs to embrace the model.

This program, termed "Shilling for a Shilling," allows these entities to allocate specific amounts from their development funds, with REREC committing an equal amount for rural electrification in designated regions.

The commitment of REREC extends beyond the county, with ongoing projects countrywide aiming to enhance rural electrification in the country.

These efforts not only seek to improve the livelihoods of the people but also align with the national economic development blueprint, Vision 2030, and the Bottom-up Economic Transformation Agenda (BETA), championed by President William Ruto.