Kenya

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The idea is simple: increase capacity, use cheaper generation sources for new power plants and this will reduce prices for the end user. The only problem is that prices are actually rising. Questions remain surrounding issues, such as whether the 5000 MW of planned additional capacity can actually be realised in the short 40-month timeframe, whether there will be enough...

What challenges exist in addressing Kenya’s electricity shortfalls?

In September 2013 a major discovery ensured Kenya’s water security for generations. A 248bn-cu-metre underground reservoir of water was discovered in Turkana in north-west Kenya. Given that the country uses 3bn cu metres annually, politicians are celebrating a discovery that will last more than 70 years at current rates of consumption. The government plans to use 70% of...

Sub-Saharan Africa is no stranger to power cuts – the World Bank estimates that outages cost businesses in the region 20% of sales. Kenya is no exception to the rule, where businesses and manufacturers account for 60% of electricity demand. The Kenya Private Sector Alliance (KEPSA), an organisation that advocates for improvements to the business environment, estimates...

How can international and local firms best capitalise on the US’s Power Africa initiative?

As with a number of African markets, expanding the capacity of Kenya’s utilities sector is a key part of the government’s blueprint for development. On the power side, the government aims to add 5000 MW of generation capacity to the existing 1672 MW by 2017. Down the road, the government intends to further expand capacity to meet the 17,000 MW of demand anticipated by...

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