Kenya Power to Ration Electricity Due to Rising Demand and Aging Infrastructure

Kenya Power is facing challenges as it plans to ration electricity due to rising demand and aging infrastructure. The company has reported frequent power outages across the country, raising concerns among businesses and consumers.

The issue escalated recently following a nationwide blackout, prompting Energy Cabinet Secretary Davis Chirchir to announce that load shedding would be introduced as a short-term measure.

The approach aims to reduce pressure on aging transmission lines, which are struggling to handle sudden spikes in electricity demand.

Over the years, Kenya’s electricity generation capacity has improved, reaching an installed capacity of 3,199.9 megawatts (MW).

However, the actual output often fails to meet peak demand, which recently hit a record high of 2,239 MW. The narrowing gap between capacity and peak demand has raised alarms about the sustainability of the country’s energy supply.

The reserve margin—the difference between available power and peak demand—currently stands at just nine megawatts, far below the recommended level of 310 MW.

This precarious balance has increased instances of load shedding, where electricity is deliberately cut to manage demand.

Rising electricity costs have added to the burden on businesses and consumers. In April 2023, new tariffs were introduced, increasing bills by up to 77% for households and businesses.

The price hike is attributed to several factors, including the removal of government subsidies and volatile fuel prices, which heavily impact generation costs. As a result, many consumers are struggling with higher bills alongside unreliable service.

Aging infrastructure remains a critical concern that has long been neglected. Although Kenya Power’s customer base has grown —from 2.3 million in 2013 to over 9 million today—the company has not invested enough in upgrading its transmission lines.

This outdated infrastructure is prone to overload, leading to blackouts and service disruptions. For instance, a recent incident saw an overloaded power line trip, causing widespread outages across the country.

HAVE YOU READ?

Kenya Power’s Sh14 Billion Budget Breach Raises Accountability Concerns

The impact on businesses has been severe. Frequent power outages disrupt operations, forcing many companies to invest in costly backup generators.

This situation has significantly increased operational costs while creating uncertainty for investors who may hesitate to commit capital in a market with unreliable power supply.

In response, Kenya Power is exploring strategies to boost generation capacity and improve service reliability. The company is seeking international support, including a proposed $300 million interest-free loan from the World Bank, to upgrade its transmission network. However, progress has been hindered by bureaucratic delays and inadequate investment.

As Kenya addresses these pressing issues, modernizing its energy infrastructure must take priority to ensure affordable electricity for citizens.

Attracting investment in renewable energy projects will be crucial to overcoming current shortages and meeting future demands. If these challenges remain unaddressed, they could stifle economic growth and development across the country.

Kenya Power’s warnings about costly electricity and impending rationing underscore deep issues within the energy sector.

With rising demand outpacing generation capacity and prices burdening consumers, urgent measures are needed to stabilize the sector.

The government’s focus on modernizing infrastructure and improving reliability will be essential for securing a sustainable energy future for all Kenyans.