The government will invest more than Sh1 billion in electricity distribution to rural areas.

The Rural Electrification Programme facility will target market centres, public facilities and social amenities and will receive funding yearly, Kenya Power & Lighting Company managing director James Gichuru said in a speech read on his behalf by Mr Jasper Oduor, the company's chief engineer in charge of energy transmission, during the Institute of Engineers of Kenya Annual Dinner Dance in Nairobi.

The enhanced funding, from Sh300 million previously, is aimed at transforming rural areas into hubs of economic activity and boosting entrepreneurship and income generation.

He said the expansion of the national grid to cover more parts of the country had improved education deliverance in both urban and rural areas.

"Besides contributing to eradication of poverty, availability of electricity in the rural areas continue to play a crucial role in curbing rural-urban migration and improving the standards of living,'' he said.

Mr Oduor said KPLC had undergone a reengineering process through an institutional strengthening programme that had made it more customer focused. The programme is a collaborative effort with a Spanish electric utility, Union Fenosa, and culminated in effective technology and skills transfer to 1,261 employees.

The company is currently tapping into the intellectual capital developed during the project to offer IT consultancy services within the East African region.