Kenya is among a handful of African countries at the forefront of deploying cutting edge energy technologies that are expected to significantly transform the power sector in sub-Saharan Africa.
According to Deloitte’s inaugural Sub-Saharan Africa Power Trends: Power Disruption in Africa report, Kenya has decentralised its power generation systems and models while strengthening structure reforms through vertical unbundling.
Vertical unbundling, the process of ‘unpacking’ integrated utilities into separate generation, transmission and distribution companies, has also been noted in other countries including Ghana, Namibia, South Africa, Uganda and Zimbabwe.
Power projects make up a large share of infrastructure and construction sector investments at the regional level, accounting for 44 per cent in South Africa and 37 per cent in East Africa. Notable power projects in Kenya include Iberafrica, Orpower4, Tsavo and Westmont Power projects.
“Low levels of infrastructure and power supply are a deterrent for many investors looking to invest across various sectors in Africa,” said Dr Mark A. Smith, Head of Infrastructure & Capital Projects, Deloitte East Africa.
“To address some of the longer-term issues of energy security, increased regional collaboration will be crucial. More affordable tariffs and an optimal generation capacity could be developed in the power sector through infrastructure linkages of power utilities and the regional power pools.”
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