Some of the challenges facing Kenya’s energy sector include:
- Low investment in the power sector by private investors,
- High cost of rural electrification
- Limited distribution capacity
- Limited capacity during peak demand
- Grid-system losses and weaknesses limited reach in rural areas
- Over-reliance on hydro power which constitutes about 70-80 per cent of the total electrical power hence this has caused the country to power – rationing in times of drought, resulting in the use of very expensive energy power generation.
- Inadequate seaport facilities for handling imported coal and natural gas which is a cheaper primary energy resource compared to petroleum oil-based fuels for power generation,
- High cost of power compared to other countries such as Egypt and South Africa.
It is therefore important that the government address the high electricity tariffs to the manufacturing industry to make Kenyan goods competitive both locally and internationally and to exploit other alternative sources of energy, including power resources such as solar, wind, coal and bio-gas.