Kenya seeking private investment into energy transmission

Transmission infrastructure at Menengai, Kenya (source: Agence ecofin)

Alexander Richter 9 Mar 2018

With energy transmission still being a key issue in the further electrification of the country and ensuring stable energy supply from the geothermal plants of the country, investments into energy transmission has been lagging behind ambitious energy targets.

Now, Kenya’s President Uhuru Kenyatta has called on investors to exploit the opportunities presented in the energy transmission, saying this is an area which the private sector’s activity was non-existent, yet the country is engaged in connecting as many people as possible to electricity.

“As we invite more investors into energy generation, I would like to call on the private sector to take advantage of opportunities in the energy transmission,” said Kenyatta when he addressed a business delegation from France in Nairobi on Tuesday.

The Kenya Electricity Transmission Company, a state agency, is the only one entity that invests in electricity transmission while the listed Kenya Power, in which the government has substantial shareholding, enjoys monopoly in electricity distribution.

Data from the ministry of energy shows demand exists for investment in transmission lines to evacuate renewable power like geothermal, solar and wind from Kenya’s remote regions.

There are also opportunities for evacuation of crude and refined oil from the north-western Kenya where production of oil is expected to start soon.

The president said the government’s initiative known as the Last Mile Connectivity, meant to connect as many Kenyans as possible to electricity, is still ongoing and therefore presents opportunities for the private sector.

“Under this initiative, connections to the household increased from 28 percent of total households in 2013 to 60 percent of households by 2017,” said Kenyatta.

Source: Xinhua Net