Economic Development: Energy demand.

One of the greatest hinderance to economic development is limited energy supply. Today, Kenya prides itself in having enough energy for its people. Around 1999/2000 we experienced loading shedding with frequent blackouts. However, though we are self sufficient, a peak demand of 1800MWe for an entire country of 45 million is a clear indicator that we are low income country. At an annual consumption 9.8Twh or 219Kwh per person/capita, this is too low compared to middle income countries which average 2500-3000 Kwh per per capita. This means Kenya should work to double their energy demand to about 5040MWe in the medium term while it should increase to 15000MWe in the long term. This will encourage the necessary investments needed to develop this country. Consecutively, petroleum demand should also increase from about 110,000bpd now to 240,000bpd by 2025.

Energy prices in Kenya are higher than most of our neighbours. I hope Kenya government can find ways to reduce that bill and make Kenyans happy.

what do you mean higher than our neighbours na ninaona UG iko juu ya kenya?

Ndugu gashwin I said “most” and you even quoted me on it.

It was inconvenient to say it is cheaper in ke than in ug but it’s okay.

South Africa produces over 50,000 mw.
Shows just how much we have to go just to reach the levels of Africa’s least shit hole country.

Do we need 50k at this stage of our development. Have you read our vision 2030 energy goals?

Although we are producing more power than demand, the juice is bloody costly because we entered into dubious production contracts with no exit clauses like for the diesel-powered producers like Thika Power Co

Kenyas power is expensive due to our own desires. KPLC is so corrupt, it is the one leading to the exaggerated costs. They enter into dubious deals and agreements with private energy producers to fleece the consumer.

I was just pointing out how far behind we are.
Even if we produced 50k, we have nowhere to take it. Very little manufacturing going on.

Chicken and egg. We couldn’t get industries coz power was too expensive. We are working towards cheap power, including coal and nuclear to encourage manufacturing.

As long as KPLC remains the dominant distributor hakuna mahali tunaenda. Hizi debate za energy tumefanya mingi na ni kama watu huku hawaelewi how the power industry works.


So what do you propose? Split KPLC?
Start another power company… (No one stopping anyone)

When you talk like that, it shows lack of an understanding. Power distribution is capital intensive.
Even if there was another distributor in Kenya, they will not go placing their poles in areas where Kenya Power already is. It will simply make no business sense.
They can only go to areas Kenya Power has not reached, hence no effect on prices or efficiency.
It is impractical for more than one power or water company to go installing their infrastructure in the same area.

In short, even in developed countries, utility companies are monopolies. A monopoly either in the whole country, or in a specific region.

Tanzania has cheaper power but attracts fewer industries than Kenya.

I think why companies open manufacturing plants in South Africa, Egypt of Nigeria is first and foremost because of the large market to sell to.
South Africa has the whole of SADC, Nigeria alone is enough, Egypt the middle east.
East African countries are however moving to isolate themselves.

Lower power prices can help, but if the market continues shrinking, it’s still not attractive.

Of course. We all remember the factors of production and the role they play in determining location of factories.

Nimesema hapa mara mingi, privatize it. Wewe ndio huna understanding. Privatisation will force them to start paying for building poles on govt land which will open up the competition. In Japan, you have more than one power company with different distribution lines on the same poles and they even support different power frequencies of 50 and 60 Hz. So usiniambie it’s not possible.

On the spot but Ethiopia is doing all it can to attract manufacturing investors. Their power is also very cheap

Paying for government land will open up competition how? That will only lead to more expenses for the company and even higher prices for the consumer.

Japan that you are quoting has higher electricity prices than Kenya, and is controlled by a few regional monopolies. Actually, until recently, the power generators were also the same ones distributing the power - vertically integrated monopolies.
At least here we have KenGen and Kenya Power as separate companies.

What you are trying to say, and failing, is that you want Kenya Power to become a pole erection company.
That they put up the poles and other companies lay the wires.
Still, that will only create regional monopolies and might even hike up the prices further, since now we have two companies involved, both seeking a profit.

Residents of a particular town say, Thika will still have no choice. They will have a single power supplier, with the only difference being that their power supplier might be different from the one in Nyeri.

Today, I’m surprised you did not defend Kenya. Umekubali kuna shida hapa.