Rural electrification programmes in Kenya : Policy conclusion from a valuation study

Developing countries have struggled with low electrification rates in the rural areas. This study investigates one major issue impeding the rural electrification programs 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. 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.