The Political Economy of Investment in Renewable Electricity in Kenya

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Osiolo, HH orcid iconORCID: 0000-0001-8697-5471, Pueyo, A and Gachanja, J (2017) The Political Economy of Investment in Renewable Electricity in Kenya. IDS Bulletin, 48 (5-6). pp. 119-140. ISSN 0265-5012

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Abstract

Kenya has been hailed as a successful sub-Saharan African country in attracting private investment for renewable energy. However, energy poverty remains very high, with connectivity rates lower than the average for sub-Saharan Africa and poor quality of supply for those connected. Several constraints persist to achieve universal access to clean and affordable electricity: high system costs, including a deficient transmission and distribution infrastructure; low rural demand and inadequate planning to meet it; and local opposition to large renewable infrastructure. This article considers the political economy of these constraints, explaining how they arose, which policies can address them and which actors back or oppose these policies. The overarching message is that a prominent state role is required to fund the network components of the electricity system and to reach the less profitable segments of society, namely the rural poor. However, this clashes with a dominant private sector-led narrative in the international development community.

Item Type: Article
Uncontrolled Keywords: renewable energy; political economy; Kenya; electricity; sub-Saharan Africa; investment; constraints; 35 Commerce, Management, Tourism and Services; 3502 Banking, Finance and Investment; 44 Human Society; 4404 Development Studies; 4407 Policy and Administration; 1402 Applied Economics; 1604 Human Geography; 1605 Policy and Administration; Development Studies; 3502 Banking, finance and investment; 4404 Development studies; 4407 Policy and administration
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Divisions: Liverpool Business School
Publisher: Institute of Development Studies
Date of acceptance: 1 December 2017
Date of first compliant Open Access: 27 May 2026
Date Deposited: 27 May 2026 11:25
Last Modified: 27 May 2026 11:25
DOI or ID number: 10.19088/1968-2017.166
URI: https://researchonline.ljmu.ac.uk/id/eprint/28661
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