Rural electrification programmes in Kenya: Policy conclusions from a valuation study

Developing countries have struggled with low electrification rates in rural areas. This study investigates one major issue which is impeding rural electrification programmes: high connection payments. This paper uses estimates obtained from a stated preference study in rural Kenya using a contingent valuation method which was completed in 2007, in order to examine the subjects' willingness to pay to connect to grid electricity and photovoltaic services. The key findings suggest that the government needs to reform the current energy subsidies, establish financial schemes and create a multilevel critical analysis of the political economy of energy systems.

► We estimate consumer energy patterns for non-electrified rural households in Kenya. ► Comparison of ability to pay and willingness to pay of connecting to electricity. ► Suggestions that government needs to reform subsidies and assess governance issues.