Stima Loan to help 300,000 connect to electricity
22nd July, 2014
Kenya Power will receive Shs.3.6 billion (30 million Euros) from the French Development Agency (AFD) and the European Union (EU) to connect approximately 300,000 electricity customers through Stima Loan arrangement in the next four years.
The Company’s Managing Director & CEO, Dr. Ben Chumo, has revealed that the first tranche of the loan facility amounting to Shs.480 million will be disbursed in the next two months and will mainly benefit applicants for single phase electricity connections whose quotations do not exceed Shs.35,000.
Dr. Chumo said Stima loan programme follows a successful pilot project which begun in 2010 which has seen 53,836 Kenyans benefit (as at June 2014) at a total cost of Shs.1.2 billion.
“Stima Loan is one of the initiatives spearheaded by the Company in collaboration with the government, AFD and EU to ease the cost of power connections and help accelerate access to electricity by more Kenyans in line with the country’s development vision,” Dr. Chumo said.
Managed as a revolving fund, he said, Stima Loan customers will pay a 20% upfront deposit and repay their loan within a period of 24 months. “A 5% administration fee is charged on the loaned amount. The period of disbursing subsequent Stima loan tranche amounting to 4 million Euros will depend on the rate of loan uptake.” He added.
While Kenya Power handles the bulk of Stima Loan applicants, the Company has partnered with local banking institutions including Equity Bank and National Bank of Kenya under different terms for ease of financing for its customers. Other prospective financiers under the scheme are at different stages of evaluation.
Ends…..
For more information, contact:
Kenya Power Corporate Communications Dept.
Tel. 3201622/39or/47
E-mail communications@kenyapower.co.ke
22nd July, 2014
Kenya Power will receive Shs.3.6 billion (30 million Euros) from the French Development Agency (AFD) and the European Union (EU) to connect approximately 300,000 electricity customers through Stima Loan arrangement in the next four years.
The Company’s Managing Director & CEO, Dr. Ben Chumo, has revealed that the first tranche of the loan facility amounting to Shs.480 million will be disbursed in the next two months and will mainly benefit applicants for single phase electricity connections whose quotations do not exceed Shs.35,000.
Dr. Chumo said Stima loan programme follows a successful pilot project which begun in 2010 which has seen 53,836 Kenyans benefit (as at June 2014) at a total cost of Shs.1.2 billion.
“Stima Loan is one of the initiatives spearheaded by the Company in collaboration with the government, AFD and EU to ease the cost of power connections and help accelerate access to electricity by more Kenyans in line with the country’s development vision,” Dr. Chumo said.
Managed as a revolving fund, he said, Stima Loan customers will pay a 20% upfront deposit and repay their loan within a period of 24 months. “A 5% administration fee is charged on the loaned amount. The period of disbursing subsequent Stima loan tranche amounting to 4 million Euros will depend on the rate of loan uptake.” He added.
While Kenya Power handles the bulk of Stima Loan applicants, the Company has partnered with local banking institutions including Equity Bank and National Bank of Kenya under different terms for ease of financing for its customers. Other prospective financiers under the scheme are at different stages of evaluation.
Ends…..
For more information, contact:
Kenya Power Corporate Communications Dept.
Tel. 3201622/39or/47
E-mail communications@kenyapower.co.ke
Press Release - Stima Loan to help 300000 connect to electricity.pdf
