Power Sector Reform in Kenya

After independence, Kenya relied primarily on hydropower to meet its demand for electricity. But this left it heavily exposed to hydrological risks. As drought periods intensified during the 1990s, the country was pushed into a situation of acute supply insecurity, forcing it to ramp up fossil fuel–based generation by the end of the decade, which increased both the cost and carbon intensity of the power supply. High fossil fuel generation costs combined with low electricity tariffs, heavy government involvement in state-owned enterprise operations and management, and inadequate coverage of aging transmission and distribution networks resulted in a poorly performing and financially constrained energy sector.