Kenya is on the brink of a transformative energy revolution, thanks to strategic unbundling initiatives and efforts to ensure universal access. Sharon Rodah, Advocate of the High Court of Kenya, sheds light on how breaking up the existing monopoly in the energy sector can pave the way for enhanced efficiency and affordability.
Currently, Kenya is dominated by a single state-owned utility company, Kenya Power, which controls both transmission and distribution sectors along with some generation facilities. This monopoly has led to reliability challenges within the system. According to Rodah,
“Unbundling and diversifying electricity utilities, whether in public or private hands, are crucial for boosting operational efficiency.”
The unbundling process aims not only to enhance operational efficiency but also to introduce competition into the market. As Rodah explains,
“Having multiple players striving to provide top-notch services fosters affordability as each competitor seeks to offer better value.”
She highlights that regulations have been put in place to promote fair market access and encourage direct distribution from producers to consumers.
Kenya has embarked on innovative programs, such as the last-mile connectivity initiative, to align with global sustainability goals like SDG7, which aims for affordable and clean energy access for all by 2030. This initiative targets rural areas where electricity access is still limited. Rodah emphasises that this program plays a significant role in bridging the urban-rural energy divide by connecting remote households to the national grid.
“We are currently implementing phase six of the last-mile connectivity program.”
says Rodah.
“The government’s target is ambitious, as it aims to connect over 100,000 households this year alone.”
The government is focusing primarily on rural areas that lack electricity accessibility, in contrast to urban regions where universal access has already been achieved.
Furthermore, Kenya is embracing solar energy solutions through initiatives like solar home systems, which play a vital role in providing decentralised power sources, especially in off-grid areas. This move enhances energy access and contributes towards sustainable development goals by promoting clean energy usage.
Looking ahead, these strategic reforms and initiatives are set to redefine Kenya’s energy landscape by fostering competition among utilities while ensuring equitable access for all citizens regardless of their geographic location. By dismantling monopolies and promoting renewable energy solutions like solar power systems, Kenya is paving the way towards an inclusive and sustainable energy future for its people.
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