Learning from Power Sector Reform Experiences : The Case of Kenya
Two successive waves of reform have fundamentally altered the structure and organization of Kenya's vibrant power sector, which boasts a tradition of strong technical and commercial performance. In the first wave -- beginning in 1996 and large...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/451561555435655366/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Kenya http://hdl.handle.net/10986/31561 |
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okr-10986-315612022-09-20T00:14:49Z Learning from Power Sector Reform Experiences : The Case of Kenya Godinho, Catrina Eberhard, Anton POWER SECTOR REFORM ELECTRIC UTILITIES POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING PRIVATIZATION PRIVATE INVESTMENT GEOTHERMAL ENERGY Two successive waves of reform have fundamentally altered the structure and organization of Kenya's vibrant power sector, which boasts a tradition of strong technical and commercial performance. In the first wave -- beginning in 1996 and largely donor-driven -- policy and regulatory functions were separated from commercial activities; generation was unbundled from transmission and distribution; cost-reflective tariffs were introduced; and generation was liberalized. In the second wave -- beginning in 2002 and led by domestic reform champions -- the thrust of first-wave reforms was continued, with the strengthening of independent regulation, partial privatization of the generation company (KenGen), and establishment of complementary entities. Although the government retains majority ownership of the largest power utilities in the country (Kenya Power, ~51 percent; KenGen, ~70 percent), Kenya has been able to position itself as one of the foremost destinations in the region for private energy investment. The reforms have improved the operational efficiency of the sector, increased cost recovery, and captured a significant amount of private sector investment. At the same time, the state has remained an important investor, playing a pivotal role in expanding generation capacity, scaling up electrification at an exceptionally rapid pace, and leading diversification toward geothermal energy. Political influence in sector decisions remains significant, in planning and tariff reviews. 2019-04-18T20:42:43Z 2019-04-18T20:42:43Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/451561555435655366/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Kenya http://hdl.handle.net/10986/31561 English Policy Research Working Paper;No. 8819 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Kenya |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
POWER SECTOR REFORM ELECTRIC UTILITIES POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING PRIVATIZATION PRIVATE INVESTMENT GEOTHERMAL ENERGY |
| spellingShingle |
POWER SECTOR REFORM ELECTRIC UTILITIES POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING PRIVATIZATION PRIVATE INVESTMENT GEOTHERMAL ENERGY Godinho, Catrina Eberhard, Anton Learning from Power Sector Reform Experiences : The Case of Kenya |
| geographic_facet |
Africa Kenya |
| relation |
Policy Research Working Paper;No. 8819 |
| description |
Two successive waves of reform have
fundamentally altered the structure and organization of
Kenya's vibrant power sector, which boasts a tradition
of strong technical and commercial performance. In the first
wave -- beginning in 1996 and largely donor-driven -- policy
and regulatory functions were separated from commercial
activities; generation was unbundled from transmission and
distribution; cost-reflective tariffs were introduced; and
generation was liberalized. In the second wave -- beginning
in 2002 and led by domestic reform champions -- the thrust
of first-wave reforms was continued, with the strengthening
of independent regulation, partial privatization of the
generation company (KenGen), and establishment of
complementary entities. Although the government retains
majority ownership of the largest power utilities in the
country (Kenya Power, ~51 percent; KenGen, ~70 percent),
Kenya has been able to position itself as one of the
foremost destinations in the region for private energy
investment. The reforms have improved the operational
efficiency of the sector, increased cost recovery, and
captured a significant amount of private sector investment.
At the same time, the state has remained an important
investor, playing a pivotal role in expanding generation
capacity, scaling up electrification at an exceptionally
rapid pace, and leading diversification toward geothermal
energy. Political influence in sector decisions remains
significant, in planning and tariff reviews. |
| format |
Working Paper |
| author |
Godinho, Catrina Eberhard, Anton |
| author_facet |
Godinho, Catrina Eberhard, Anton |
| author_sort |
Godinho, Catrina |
| title |
Learning from Power Sector Reform Experiences : The Case of Kenya |
| title_short |
Learning from Power Sector Reform Experiences : The Case of Kenya |
| title_full |
Learning from Power Sector Reform Experiences : The Case of Kenya |
| title_fullStr |
Learning from Power Sector Reform Experiences : The Case of Kenya |
| title_full_unstemmed |
Learning from Power Sector Reform Experiences : The Case of Kenya |
| title_sort |
learning from power sector reform experiences : the case of kenya |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/451561555435655366/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Kenya http://hdl.handle.net/10986/31561 |
| _version_ |
1764474607077687296 |