More homes set to access power as KPLC steps up grid

Economists have pointed to the strong correlation between a country’s economic performance and availability of electricity.

“There are many economic activities that are supported by availability of electricity hence the overall growth of the economy,” said Linet Oyugi, an economist with the Institute of Policy Analysis and Research (IPAR).

Ms Oyugi reckons that power allows small and medium enterprises such as welding, engineering, saloon and food processing businesses to thrive.

The recent economic surge in the country has been attributed to the rapid supply of electricity.

In deed, following the rationing of power on the back of the prolonged drought the economy recorded subdued growth as businesses were forced to operate below capacity.

Similarly, businesses cost of operation edged upward as they resorted to alternative power sources such as generator.

Even as the country explore various sources of power generation such as geothermal, wind and thermal the government is planning to tap power from Ethiopia which is undertaking arguably the largest hydro dam project Gibe III.

Gibe III is expected to produce 1800 megawatts out which Kenya will import 500MW under a power purchase agreement entered into in 2006.

The planned transmission lines from Ethiopia will cover a total of 1,200km at an estimated cost $752 million (Sh52 billion) making it the single largest and most expensive project.