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Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study

Author

Listed:
  • Sabah Abdulla

    (University of Bath)

  • A Markandya

    (University of Bath)

Abstract

Developing countries have struggled with low electrification rates in the rural areas. This study investigates one major issue impeding the rural electrification programmes in rural Kenya: high connection payments. The paper uses estimates obtained from a stated preference study, namely a contingent valuation method completed in 2007, to examine the willingness to pay to connect to grid-electricity and photovoltaic services. Expanding rural electrification will need subsidies, but the study shows that some forms of subsidy are more effective than others. The key findings suggest that the government needs to reform the energy subsidies, increase market ownership and performance of private suppliers, establish financial schemes and create markets that vary according to social-economic and demographic groups.

Suggested Citation

  • Sabah Abdulla & A Markandya, 2009. "Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study," Department of Economics Working Papers 25/09, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:17069
    as

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    File URL: https://purehost.bath.ac.uk/ws/files/330488/2509.pdf
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    References listed on IDEAS

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    4. Gustavsson, Mathias & Ellegård, Anders, 2004. "The impact of solar home systems on rural livelihoods. Experiences from the Nyimba Energy Service Company in Zambia," Renewable Energy, Elsevier, vol. 29(7), pages 1059-1072.
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    Cited by:

    1. , Diego, 2017. "The Natural and Infrastructural Capital Elements of Potential Post-Electrification Wealth Creation in Kenya," SocArXiv ddnhz, Center for Open Science.
    2. Trotter, Philipp A. & Maconachie, Roy & McManus, Marcelle C., 2018. "Solar energy's potential to mitigate political risks: The case of an optimised Africa-wide network," Energy Policy, Elsevier, vol. 117(C), pages 108-126.
    3. Lorafe Lozano & Evelyn B. Taboada, 2021. "The Power of Electricity: How Effective Is It in Promoting Sustainable Development in Rural Off-Grid Islands in the Philippines?," Energies, MDPI, vol. 14(9), pages 1-17, May.
    4. Pode, Ramchandra, 2013. "Financing LED solar home systems in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 596-629.
    5. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
    6. George Adwek & Shen Boxiong & Paul O. Ndolo & Zachary O. Siagi & Chebet Chepsaigutt & Cicilia M. Kemunto & Moses Arowo & John Shimmon & Patrobers Simiyu & Abel C. Yabo, 2020. "The solar energy access in Kenya: a review focusing on Pay-As-You-Go solar home system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 3897-3938, June.

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    Keywords

    rural electrification; willingness to pay (wtp); affordability; sub-saharan africa; energy;
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