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

  • Abdullah, Sabah
  • Markandya, Anil

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.

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File URL: http://opus.bath.ac.uk/17069/1/2509.pdf
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Paper provided by University of Bath, Department of Economics in its series Department of Economics Working Papers with number 17069.

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Date of creation: Sep 2009
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Handle: RePEc:eid:wpaper:17069
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  1. Maher, P. & Smith, N.P.A. & Williams, A.A., 2003. "Assessment of pico hydro as an option for off-grid electrification in Kenya," Renewable Energy, Elsevier, vol. 28(9), pages 1357-1369.
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