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

Sabah Abdullah, Anil Markandya

Research output: Working paper

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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.
Original languageEnglish
Place of PublicationBath, U. K.
PublisherDepartment of Economics, University of Bath
Publication statusPublished - 2009

Publication series

NameBath Economics Research Working Papers
No.25/09

Keywords

  • rural electrification
  • willingness to pay (WTP)
  • affordability
  • Sub-Saharan Africa
  • energy

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    Abdullah, S., & Markandya, A. (2009). Rural Electrification Programmes in Kenya: Policy Conclusion from a Valuation Study. (Bath Economics Research Working Papers; No. 25/09). Department of Economics, University of Bath.