Overview of the sector in Kenya
Currently, biomass energy accounts for about 70% of all energy consumed while petroleum and electricity account for only 21% and 9%, respectively. The Government has prioritised efforts to shift the underlying pattern of energy consumption towards more cleaner and modern forms of energy (ie electricity). In addition to providing a cleaner form of energy, the shift is also driven by the desire to reduce the negative impact to the economy from the unstable international oil prices.
Kenya's electricity sector comprises an interconnected power system with a total effective generation capacity of about 1,113 MW, (as of 2008). Hydro sources constitute 71% of this capacity. Kenya Power & Lighting Company (KPLC) is responsible for transmission, distribution and supply of electricity to consumers. KPLC purchases power under bulk tariff from the Kenya Electricity Generating Company (KenGen) – about 80%, and several Independent Power Producers. Peak demand is just over 1000MW and growing at a rate of 7% per annum.