Boost electricity access

Unreliable electricity supply, characterised by frequent outages, is a big problem for industries and homesteads. Kenya Power, which enjoys a near-monopoly in distribution, lacks the capacity to shoulder the burden with its performance hampered by other factors.

While there is a need to diversify not only the sources by developing solar, wind and geothermal electricity, any other clean energy generation and small plants known as power mini-grids, the utility’s shortcomings continue to haunt consumers. But there may finally be light at the end of the tunnel.

The Rural Electrification and Renewable Energy Corporation (Rerec) could soon play a more significant role in distribution alongside Kenya Power. The agency has welcomed a proposal by the government to authorise it to distribute electricity to customers across the country. To redress this, last August, the Ministry of Energy proposed to split Kenya Power’s distribution monopoly so that it only caters for large commercial and industrial consumers. Rerec would then handle households.

The former Rural Electrification Authority (REA) was given the added mandate to develop renewable energy sources through the Energy Act, 2019. However, another parastatal, the Geothermal Development Company (GDC), retained the exclusive right over this equally important source of power that injects a substantive contribution to the national grid.

Increased access to electricity can boost the development blueprint Kenya Vision 2030, which seeks to transform the country to a newly industrialising middle-income economy.

The distribution split will not have a significant impact on Kenya Power’s business as about 70 per cent of its revenue comes from commercial and industrial users. The national electricity access now stands at 76.49 per cent with some 8.2 million consumers.

Reliable power supply will be a boon to not just households but also small-scale enterprises and businesses such as hair salons, barber shops and eateries.