Electricity and Economy in Kenya

Topics: Poverty, Agriculture, Electricity generation Pages: 21 (6932 words) Published: April 25, 2012
Table of Contents
Chapter 1: Introduction5
1.1 Overview and statement of the problem5
1.2 Description of data and their sources6
Chapter 2: Current Electricity access status6
2.1 Distribution Network in Kenya6
2.2 Electricity Connectivity per county10
2.2.1 Baringo County13
2.2.2 Bomet County13
2.2.4 Busia County14
2.2.5 Elgeyo Marakwet County14
2.2.6 Embu County14
2.2.7 Garissa County14
2.2.8 Homa Bay County14
2.2.9 Isiolo County15
2.2.10 Kajiado County15
2.2.11 Kakamega County15
2.2.12 Kericho County15
2.2.13 Kiambu County16
2.2.14 Kilifi County16
2.2.15 Kirinyaga County16
2.2.16 Kisii County16
2.2.17 Kisumu County16
2.2.18 Kitui County17
2.2.19 Kwale County17
2.2.20 Laikipia County17
2.2.21 Lamu County17
2.2.22 Machakos County18
2.2.23 Makueni County18
2.2.24 Mandera County18
2.2.25 Marsabit County18
2.2.26 Meru County18
2.2.27 Migori County18
2.2.28 Mombasa County19
2.2.29 Murang’a County19
2.2.30 Nairobi County19
2.2.31Nakuru County20
2.2.32 Nandi20
2.2.33 Narok County20
2.2.34 Nyamira County20
2.2.35 Nyandarua County20
2.2.36 Nyeri County21
2.2.37 Samburu County21
2.2.38 Siaya County21
2.2.39 Taita Taveta County21
2.2.40 Tana River County21
2.2.41Tharaka-Nithi County22
2.2.42TransNzoia County22
2.2.43 Turkana County22
2.2.44 Uasin Gishu County23
2.2.45 Vihiga County23
2.2.46 Wajir County23
2.2.47 West Pokot County23
Chapter 3: Discussion24
3.1 Impact of electricity on agriculture and agro-processing activities24
3.2 Impact of electricity on educational services25
3.3 Impact of electricity on banking and communication services25
3.4 Impact of electricity on wholesale and retail trade sector25
3.5 Impact of electricity on tourism26
3.6 Effects of electricity on regional markets26
Chapter 4:27

In this report I explore the electricity distribution in each of the 47 counties in Kenya and its effects on the economy of the region. This analysis is based on the review of literature from previous studies conducted by the Government of Kenya or other stakeholders in the energy sector. My findings reveal that access to electricity, in combination with simultaneous access to markets and other infrastructure (roads, communication, schools, etc), contribute to robust growth of economy in clear and compelling ways. Kenya’s GDP composition by sector, according to 2004 estimates, was as follows: agriculture, 25.7 %; manufacturing, 14.0 %; trade, restaurants, and hotels, 13.8 %; transport and communications, 6.9 %; government services, 15.6 %; and other, 24.0 %. In 2010, the economy grew by 4.9 %. Factors responsible for this positive momentum include the new constitution, EAC integration, ICT innovations, strong macroeconomic management, and recent investments in infrastructure. Power distribution will be depicted by electric power connectivity. ICT has been the main driver of Kenya's economic growth over the last decade, growing on average by 20 % annually, and propelling the combined transport and communications sector into the economy's second largest after agriculture. In chapter three I have discussed the impact of electricity on key economic sectors in Kenya which are agriculture, educational services, banking and communication services, microenterprises and tourism all of which are key pillars of Kenya Vision 2030. It costs approximately Ksh. 35,000 to connect to the grid and about 15 US cents equivalent per kWh of electricity service. This high cost is a major obstacle to the expansion of electricity connection to low-income households.

Chapter 1: Introduction
1.1 Overview and statement of the problem
Broad agreement exists that the level and the intensity of energy use in a country is a key indicator of economic growth and development. A number of researchers claim that for modern energy to make a difference on poverty, it must necessarily...

References: 1. Commission on Revenue allocation, 2011, The Kenya County Fact Sheets, Nairobi, Kenya.
2. Kenya National Bureau of Statistics, 2010, Kenya Population and Housing Census Report, Nairobi, Kenya.
3. Ministry of Energy, 2011, Least Cost Power Development Plan, Nairobi, Kenya.
4. Ministry of Energy, 2011, Scaling-up Renewable Energy Program (SREP) Investment Plan for Kenya, Nairobi, Kenya.
5. Rural Electrification Authority, 2009, Rural Electrification Master plan, Nairobi, Kenya
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