Six counties — Mandera, Turkana, Wajir, Samburu, Marsabit, and Lamu,  are set to benefit from Sh600 million to repair non-functional mini-grids, offering long-awaited relief to communities that have endured years without electricity.

The funds form part of a broader Sh4.2 billion plan to restore rural electrification and support maintenance of off-grid power systems.

The allocation follows Parliament’s decision to block a Treasury proposal to reallocate Sh1 billion from the Rural Electrification and Renewable Energy Corporation (Rerec) budget.

The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, said diverting funds would have disrupted ongoing electrification for schools, hospitals, and markets.

“We do not agree with the Treasury proposal to relocate Sh1 billion from the Rerec budget because it will affect electrification of public institutions,” Energy PS Alex Wachira told the committee.

The committee had convened a roundtable with Treasury PS Dr Chris Kiptoo, Kenya Power, Rerec, and the Energy and Petroleum Regulatory Authority (Epra) to discuss the Sh30 billion debt owed to Kenya Power under the Rural Electrification Scheme.

The scheme, which supplies subsidised power to remote areas, is funded by the government and operated by Kenya Power on behalf of the Energy Ministry. It is considered sub-economic, with operational costs exceeding revenue, and the government reimburses any deficits.

PS Kiptoo said a recent tariff adjustment had raised the annual allocation for rural electrification from Sh1.4 billion to Sh2.5 billion, reducing the scheme’s deficit to Sh25.33 billion by June 2024.

The Treasury now proposes to increase the exchequer allocation to Sh1.66 billion in the 2025/26 financial year to further reduce the debt.

The meeting also reviewed the state of 56 mini-grid generation stations operated by Kenya Power.

Thirty hybrid stations (diesel and solar powered) have been underperforming due to faulty lithium batteries and insufficient fuel storage capacity, leading to repeated blackouts.

MPs criticised the mini-grids as “white elephants” after learning they were fitted with the wrong batteries and small diesel tanks, making them unreliable at night.

It was agreed that Rerec will receive Sh4.2 billion to replace dead and rundown mini-grids, with Sh600 million released immediately.

This year’s Sh3 billion allocation, which includes Sh1.4 billion from the Epra levy, will fund part of the work, with the remaining Sh1.2 billion prioritised in the next budget cycle.

To prevent further deficits, PS Kiptoo proposed amending the Energy Act to allow the Epra levy to be used for maintenance, which is currently prohibited.

Energy PS Wachira rejected suggestions to offset Kenya Power’s Sh70 billion debt against government funds, insisting on structured repayment arrangements instead.

The Sh600 million release is expected to restore power to public facilities and households in the affected counties, ending years of unreliable supply and boosting economic activity in remote areas.