Kenya power saving to keep electricity running

Electricity price doubled in one year

The cost of electricity has more than doubled

in the past 12 months, forcing policy makers to fast-track the roll-out of alternative energy regulation

Kenya 1.500 MW

Kenya has an installed power capacity of 1,480 mega watts, including temporary emergency power of 290MW against a peak demand of 1050 mega watts, leaving a reserve margin of only 4.5 per cent.

Frequent power shortages

and the accompanying price escalation erode about 1.5 per cent of Kenya’s GDP every year besides weakening the ability of the economy to attract fresh investments, according to the World Bank.

8% Growth, 9% Inflation

Household incomes grew at the rate of 6.4 per cent in 2005, 7.5 in 2006 and 8.7 per cent in 2007 before peaking at 8.4 in 2008, according to the Kenya National Bureau of Statistics, but high inflation that averaged 9.2 per cent in 2009 eroded much of the purchasing power gains.