New fund could spark a wave of new projects

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Kenyans could soon pay more for fuel and electricity as the government moves to establish a Consolidated Energy Fund (CEF) to finance new energy projects and reduce reliance on loans. The move could add to the costs already borne by consumers, potentially lowering grid consumption and encouraging more households and businesses to self-generate.

• The energy and agriculture sectors are key priorities, with the president noting that Kenya’s current power generation is far below industrialisation needs. His government estimates a need for at least 10,000 MW to drive growth.

• Kenya is following the path of Ethiopia and Tanzania, which relied on internal funds to build major energy projects and avoided piling up more debts. However, there may be other costs to pay, including grid flight by consumers.

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