Industry Highlights – Week Ending 12.04.2025
Here’s a roundup of key developments shaping Kenya’s energy and infrastructure sectors this past week. From major funding to boost electricity access to strategic moves in oil storage and regional fuel supply, these stories reflect the shifting landscape and emerging opportunities across the country. Click the links below to read more:
This collaboration supports the government’s affordable housing agenda by addressing the country’s low-income housing deficit. Mi Vida plans to build 5,000 affordable housing units over a five-year period, focusing on sustainable living for low- and middle-income buyers.
Under the agreement, KCB will provide debt financing to Mi Vida Homes to construct modern, master-planned housing units within mixed-use communities. Additionally, the bank will offer end-user financing to prospective buyers, making homeownership more accessible for first-time and existing homeowners.
The initiative aims to ensure a steady supply of high-quality homes, aligning with the national goal of delivering 250,000 affordable housing units each year, particularly for low-income earners.
Source: Mi Vida Homes
The report indicates that of the 4,344 rooms planned for construction across 26 hotel projects in the country, Nairobi accounts for 2,306 rooms, while other Kenyan cities and towns account for 2,038 rooms. Kenya ranks sixth in Africa with 26 hotel projects, behind Egypt, Morocco, Nigeria, Ethiopia, and Algeria.
Source: W Hospitality Group
The initiative seeks to connect approximately 150,000 new customers, including households, micro, small, and medium enterprises (MSMEs), as well as social institutions such as schools and health facilities across 45 counties, excluding Nairobi and Mombasa.
According to a statement provided by Kenya Power, the project will entail the construction and enhancement of substations, the extension of 211 kilometres of 33 kV distribution lines and 14 kilometres of 11 kV distribution lines, and the reinforcement of the grid to improve its reliability.
The Last Mile Connectivity Project (LMCP), launched in 2015, aims to utilise existing distribution infrastructure, such as transformers, to provide electricity to rural and peri-urban areas. This effort aligns with Kenya’s goal of achieving universal electricity access by 2030. Phases I and II of the initiative have already connected over 536,000 customers, improving electrification rates, as noted by the AfDB in a project appraisal document.
However, evaluations of earlier phases have highlighted challenges such as faulty meters and limited economic benefits for some beneficiaries, whose electricity mainly consists of essential lighting and entertainment. The third phase addresses these gaps by prioritising productive energy use to stimulate local economies, especially in agriculture and small businesses.
Source: Business Daily
The expansion will see the Kisumu depot gain an additional 8,000 cubic meters of storage capacity for Jet A-1 fuel and two mixed product tanks, each with a capacity of 400 cubic meters. This upgrade aims to increase the loading of petroleum products, particularly Jet A-1, from the current rate of 660 cubic meters per hour to 1,500 cubic meters per hour using a dedicated loading system. KPC also plans to introduce an inter-tank transfer system capable of moving 150 cubic meters of Jet A-1 per hour, doubling the current flow rate.
Meanwhile, in Eldoret, KPC intends to enhance the Jet A-1 receiving tanks to achieve a product transfer flow rate of 300 cubic meters per hour within the same depots. The state-owned firm emphasised the need for this upgrade, noting that the current flow rate has been insufficient to meet demand.
Source: Business Daily
This hub would improve the storage and distribution of petroleum products, including gasoline, diesel, and LPG, catering to Kenya and its landlocked neighbours, such as Uganda, Rwanda, and parts of Eastern Congo.
The initiative forms part of Saudi Aramco’s broader strategy to expand its downstream operations in emerging markets by securing and upgrading storage and terminal infrastructure. The proposed investments will target the port of Mombasa, which handles a significant share of regional petroleum imports.
Reports indicate that the Saudi firm plans to inject capital through its investment arm, Fujairah FZE, which is registered in the UAE, to upgrade petroleum storage facilities at the port. Discussions are ongoing about Kenya’s role in facilitating the investment, which is expected to enhance regional energy security and create employment opportunities.
Source: Business Daily
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