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Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study

Sabah Abdullah () and Anil Markandya

No 25/09, Department of Economics Working Papers from University of Bath, Department of Economics

Abstract: Developing countries have struggled with low electrification rates in the rural areas. This study investigates one major issue impeding the rural electrification programmes in rural Kenya: high connection payments. The paper uses estimates obtained from a stated preference study, namely a contingent valuation method completed in 2007, to examine the willingness to pay to connect to grid-electricity and photovoltaic services. Expanding rural electrification will need subsidies, but the study shows that some forms of subsidy are more effective than others. The key findings suggest that the government needs to reform the energy subsidies, increase market ownership and performance of private suppliers, establish financial schemes and create markets that vary according to social-economic and demographic groups.

Keywords: rural electrification; willingness to pay (wtp); affordability; sub-saharan africa; energy (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-afr, nep-dev and nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:eid:wpaper:17069

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