Kenya: Household Energy Sector Governace
Household Energy Demand and Use
B Household Energy Supply
C Household Energy Sector Governace
D Household Energy Information
this part of a ministry?, Kenya Forestry Research Institute) are responsible for the governance of energy, forests and the environment in respect of low-income groups in Kenya. Although there are a range of policy initiatives aimed at the supply, conservation and distribution of various energy sources, it is recognised that there is duplication of responsibility and that co-ordination could be improved.
The electricity industry has multiple producers, with generation overseen by the Electricity Regulation Board, with transmission and distribution managed by Kenya Power and Lighting.
- Wood fuel is produced from government forests, rangelands and small farms. Recent years (under the Kenya Forestry Master Plan of 1994) have seen an increase in agro-forestry on small farms, so that this is now the single largest producer at nearly 50%. Subsidies continue to be used in respect of government forests however, which has restricted the growth of commercially run plantations.
- The policy 'environment' in respect of charcoal is somewhat contradictory: as noted above, this fuel is used widely in the urban areas and there is active trading, yet production is not officially recognised as legitimate. Nevertheless, distributors wishing to transport charcoal require a movement 'permit'. Co-ordination of policy in respect of production, supply and protection of the environment is unlikely in these circumstances.
- There has recently been a liberalisation of the petroleum markets in Kenya, which has had a number of impacts. The price of kerosene has increased (in part due to a tax increase in June 2002), with a fall in demand - kerosene is now seen as less affordable by the poor. On the other hand, liberalisation (together with availability of small bottles and credit) has increased the use of LPG - but, this remains a fuel used by a small (and mainly urban) minority.
- The Rural Electrification Programme (REP) was introduced in 1973 to promote access for low-income homes, and is funded by a mix of external (loans) and internal revenue. Although demand is reported to be high, in 2000 only 3.8% of rural homes had access to electricity, and both the electricity and appliances are seen as too costly. Due to the restrictions in generation with the Kenya Power Company operating under Kenya Power and Lighting Company for a long time as a monopoly for electricity generation and distribution, electrification levels remained below demand and distribution limited to a few areas. Until the late 1990's KPLC was a monopoly. Upon liberalisation of the industry, Kenya Power Company part of KPLC became independent and was transformed to Kenya Generating Company. A few other independent power producers have been established in the country. This has increased the generating capacity. KPLC however, has remained a monopoly as the sole distributor of electricity. It has been unable to meet the demand for electricity supply in rural areas. Issues of corporate governance at KPLC have been raised with regard to the management. The Government policy on distribution of electricity has backed KPLC's monopolistic behaviour. Advocacy to change this policy is currently underway in the country.
- There have been a number of policy initiatives in respect of renewable energy, improved stoves, etc., but these appear to be - in practice - piecemeal and not very effective.
The official policy on charcoal production appears to be at odds with the reality of commercial trade and utilisation of this fuel, which (while probably pragmatic in the short-term) would seem counter-productive over a longer time-scale. Other areas of policy on energy for the poor, forestry, renewable energy and conservation, and improved stoves, appear to be of limited effectiveness, even though some policy exists for most of these issues.