The deal will also involve the construction of additional 33 kV power distribution lines to meet growing demand for increasing number of customers.
Kenya Power CEO Ben Chumo said the upgrade projects are expected to improve reliability, contribute to reduction of technical losses and provide additional capacity to supply power to new customers.
“Successful conclusion of the contracts will further reinforce the Company’s procurement motto of ‘Buy Kenyan, Build Kenya’ aimed at giving opportunities to local companies in projects implementation, building capacity and provision of goods and services,” Chumo said during the signing ceremony of the contracts on Wednesday.
The various substations are located in Nairobi, Mombasa, Machakos, Nakuru, Thika, Eldama Ravine and Naivasha.
To ensure timely completion of the projects, the company plans to provide major power equipment such as transformers with “contractors expected to provide additional auxiliary equipment, carry out engineering designs, construct, test and commission the substations.”
The projects are wholly funded using the Kenya Power’s internally generated funds. This is part of recommendations for electricity refurbishment and expansion projects detailed out in Power Distribution Master Plan study concluded by Parsons Brinckerhoff of the United Kingdom in 2013.
‘Power Distribution Master Plan aims at developing strategies that will achieve least cost power distribution system development, ensure adequate power distribution capacity in each of the 46 counties and maintain a reliable power supply at required standards,” Chumo said.
The contracted companies include Powergen Technologies Limited, Ezeetec Limited, Empower Installation Contractors Limited and Histoto Limited and Encomm Limited Jv.
Others are Arm Engineering Limited, Lomas and Lomas Limited, Thames Electricals Limited and Abcos Industrial Limited (Jv).
Kenya Power spent close to 80 percent of its annual procurement budget, which amounted to Sh6.2 billion last year, on materials procured overseas mainly from India and China.