According to recent foreign media reports, Kenya is set to boost its electricity generation capacity by approximately 40% due to improved economic conditions and rising demand. This expansion, which includes an additional 423,000 kilowatts of installed power, is expected to be completed between July 2006 and July 2008. Currently, Kenya has a total installed capacity of 1.032 million kilowatts, and peak electricity demand has surged by 17.2% over the past two years.
The country's energy minister attributes this growing demand to the ongoing economic recovery. Last year, Kenya’s GDP grew by 4.3%, and economists predict a 5% increase this year. Analysts note that the Kenyan economy began showing signs of improvement after the new president took office in 2002. Despite being East Africa’s largest economy, Kenya struggled for many years under poor governance and corruption, particularly during the last 24 years of a previous administration.
In 2003, the International Monetary Fund and the World Bank resumed their financial support for Kenya. However, in recent years, many donors have criticized the country for persistent corruption and slow progress on economic reforms, which have hindered growth. The government is now working to address these issues as part of its broader development strategy.
The state-owned Kenyan Power Generation Company plans to add 27,000 kilowatts of new capacity from gas, geothermal, and hydro sources, along with 30,000 kilowatts from wind energy. An independent power producer will contribute an additional 115,000 kilowatts. Meanwhile, the energy ministry announced it has signed a contract with a company to conduct a feasibility study for coalfields in the east of the country by the end of this year.
Regional power integration is also gaining momentum. Once Kenya, Uganda, and Tanzania’s grids are interconnected, more electricity will become available across the region. By the end of 2009, electricity trading between Kenya and Tanzania is expected to begin.
This month, China agreed to provide Kenya with 26 billion Kenyan shillings to help modernize the country’s power distribution system. This investment is seen as a key step in supporting Kenya’s long-term energy and economic development goals.
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