we examine the main challenges of investing in the power industry in Kenya before reviewing the opportunities that are also available to investors.
Kenya’s demand for electricity should rise at an annual average of 7.9% over the next decade. Despite Kenya’s positive economic outlook, steady growth (5-7% annually) and a growing middle class, power supply and generation has lagged behind this demand. Infrastructure has not kept pace with demand as in other emerging African economies.
Indeed, the existing power infrastructure requires both an upgrade and ongoing maintenance. The Mombasa-based Kenya Petroleum Refineries, dormant since September 2013, are set for a SH1.5 billion makeover to store crude oil from Liokichar Basin in Turkana for export, the GOK announced in October 2016. The Kenya Pipeline Company has taken over the storage facilities at the refinery in a 3 year lease agreement ahead of a planned programme to export the crude oil. Read full article here