Regulatory Review of the Electricity Market in Kenya: towards Crowding-in Private Sector Investment

Abstract

This report provides an analysis of Kenya’s electricity sector policies, laws, and regulations in relation to crowding-in private sector participation in developing national electricity infrastructure. The report is part of the United Nations Economic Commission for Africa and RES4Africa Foundation joint program on Regulatory Review of the Electricity Sector in Africa: Towards Crowding-in Private Sector Investment. The purpose of this regulatory review is to pinpoint the main strengths and gaps of the policy and regulatory framework currently in force related to private sector participation in the entire electricity market. It further aims to offer concrete recommendations for further regulatory improvement and reform toward attaining a competitive, resilient, and sustainable electricity market. The regulatory analysis is undertaken following a comprehensive UNECA and RES4Africa regulatory review methodology, which was developed with the participation of African and international regulatory experts. The approach enables three broader assessments: the degree of openness of the electricity market, across the value chain, to the private sector based on an evaluation of the power sector policies, strategies, structure, and governance; the attractiveness of the market based on an assessment of sector economics, fair competition, and overall economic regulation; and the readiness of the market based on an assessment of technical regulations.