Kenya Industry Articles & Analysis

Chapter | Utilities from The Report: Kenya 2017

As with most African markets, Kenya’s power sector is defined by a two-track approach, with an eye to boosting generation and improving access. The reasoning behind the latter is clear; electrification rates in the country are low even by continental standards, and this is exacerbated by the modest urbanisation rate. As for the former, in contrast to much of the rest of the continent, Kenya...

Even amid a broader downturn in many African markets, Kenya has consistently been one of sub-Saharan Africa’s most reliable performers.

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Power is one of the biggest hurdles to stronger growth in sub-Saharan Africa, with households and industrial firms struggling to ensure a reliable supply of electricity. A number of solutions are being rolled out, from off-grid networks to new transmission infrastructure, but one of the most necessary is new generation capacity.


Kenya’s power grid is in the midst of an international upgrade, featuring increased connection capacity with neighbouring Uganda, Tanzania and Ethiopia. The country’s potential as a power generator is significant, with supply already outstripping demand and geothermal sources in particular seen as an inexpensive, reliable option. Kenya’s...


Tariffs are a core aspect of debate in the Kenyan power sector, with a focus on ensuring that they fall to levels low enough to stoke consumption but that they remain sufficiently high to attract investment. Finding the right balance can be tricky.


Off-grid power has long been a fast and easy solution to the energy access challenge across Africa, largely in the form of diesel-powered generators, open fires or burning kerosene.


What are the main challenges facing large-scale energy projects in Kenya?


Increasingly a mainstay of the manufacturing and retail industries, Kenya’s fast-moving consumer goods (FMCG) have shown considerable expansion in recent years, buoyed by a rising middle class, significant opportunities for regional expansion and local brand loyalty.