Effect of Regulatory Reforms in the Electricity Energy Subsector on Access to Electricity in Rural Kenya

Abstract

Rural residents' ability to access electricity is essential for their homes, the neighborhood, and the local economy. According to a 2023 World Bank the advantages of electricity for rural households include lighting, information access, a better learning environment for kids, and an improved business climate, which leads to job opportunities and, as a result, poverty reduction as well as economic development. Indeed, one of the elements that will determine whether Kenya's Vision 2030 is accomplished is access to energy. Aware of this, the Kenyan government has over the years implemented a number of regulatory reforms through regulatory bodies like the Energy and Petroleum Regulatory Authority (EPRA), and Kenya Power and Lighting Company (KPLC) and Rural Electrification and Renewable Energy Corporation (REREC) to hasten the adoption of electricity in rural areas. These reforms address laws, governance, subsidies and tariffs among other issues. This study looked at how these reforms affected rural electrification to help guide future policy. The fact that the effect of these reforms has not received as much attention as it should have in the few studies that have been undertaken in Kenya is what inspired the study. In particular, the study looked at the effect of institutional reforms, governance reforms, service delivery reforms, on access to electricity in rural Kenya. The study's survey design included a target population of 545,946 rural households from the counties of Kakamega (301,616), Uasin Gishu (124,207), and Nyandarua (120,123). Using the multi-stage cluster sampling method, 384 of these households were selected as the sample size. Important sources from civil society organizations and regulatory bodies were also interviewed, including the KPLC, EPRA and REREC. Primary data was collected using surveys and key informant interviewing techniques, and then it was analyzed using multiple logistic regressions and descriptive statistics. The study's survey received a response rate of 93.75%. Through the use of both descriptive and logistic regression, the study revealed that subsidies, and legal reforms have a positive effect on rural Kenyans' access to electricity. The study also identified a positive relationship between governance improvements and energy access. The majority of rural families, according to the study, are not aware of the changes in the electricity sub-sector, and rural households only take part in a limited way in service delivery changes (Umeme Pamoja, Stima loans) that are meant to enhance rural electrification. It has been established that alternative energy sources have a negative effect on access to grid electrification of rural areas. The survey also revealed that the present rate of rural electrification in the selected counties is 39.4%. To promote rural electrification, this thesis recommends that the government educate the rural population about the reforms being implemented in the electricity sub- sector in light of the findings. The study also recommends that rural households should sensitized on the importance of participation in the sub-sector’s governance processes to improve the reform outcomes. The study also recommends that the government keep the electricity sector's subsidy rates as they are so as to maintain the electricity accessibility momentum in rural areas. Accountability and decentralization should also be deepened in the electricity energy sub-sector.