A comprehensive study of electricity tariffs across 230 countries by Cable.co.uk has revealed that Kenya’s electricity prices are relatively high on the global scale, positioning us in the upper third of worldwide electricity costs.
Here is a detailed breakdown of Kenya’s electricity pricing as per the data gathered.
Kenya ranks 130th out of 230 countries surveyed, with an average electricity price of $0.161 per kilowatt-hour (kWh) – with the current exchange rate, this converts to roughly Ksh. 20.6. This figure is just below the global average of $0.165 per kWh (Ksh. 21.91), but it masks some major regional and international disparities.
Within Africa, Kenya’s electricity rates are higher than those of many of its counterparts. Here are a few examples for context:
- Uganda: $0.126 [Ksh. 16.76]/kWh (ranked 114th globally)
- Tanzania: $0.069 [Ksh. 9.03]/kWh (ranked 64th)
- Egypt: $0.041 [Ksh. 5.16]/kWh (ranked 18th)
- Algeria: $0.033 [Ksh. 3.87]/kWh (ranked 9th)
However, Kenya’s rates are lower than those of some African nations, like Cape Verde: $0.236 [Ksh. 30.95]/kWh and Senegal: $0.179 [Ksh. 23.20]/kWh.
Globally, Kenya’s electricity prices are lower than in many developed nations. For example:
- Germany: $0.323 [Ksh. 41.25]/kWh (ranked 211th)
- United Kingdom: $0.251 [Ksh. 32.23]/kWh (ranked 190th)
- Japan: $0.211 [Ksh. 27.08]/kWh (ranked 171st)
However, it’s still higher than some major economies, like:
- China: $0.084 [Ksh. 10.31]/kWh (ranked 56th)
- Russia: $0.050 [Ksh. 6.44]/kWh (ranked 22nd)
- India: $0.092 [Ksh. 11.60]/kWh (ranked 63rd)
When looking at the extremes in global pricing, the cheapest nation is Libya at $0.007 [Ksh. 1.29]/kWh, while the most expensive is the Solomon Islands at a ridiculous $0.692 [Ksh. 89]/kWh.
When we focus on East Africa, Kenya has the highest electricity prices among its immediate neighbors. This certainly impacts our economic competitiveness, especially in energy-intensive industries. For instance, in Ethiopia, electricity is priced at $0.035 [Ksh. 5.16]/kWh.
Given these statistics, what factors influence the pricing of electricity around the world? According to the study, several factors contribute to the variation in electricity prices, including:
- Energy sources: Countries with abundant fossil fuels or well-developed renewable energy sectors often have lower prices.
- Infrastructure: The age and efficiency of power generation and distribution systems inevitably impact costs.
- Government policies: Subsidies, taxes, and regulations play a major role in determining consumer prices.
- Market structures: Competitive markets versus monopolies can influence pricing, e.g., the Kenya Power monopoly has contributed heavily to the high electricity prices.
It’s not all bleak news for us, however. Kenya has been investing heavily in renewable energy, particularly geothermal and wind power. As of 2021, renewable sources account for over 70% of the country’s installed electrical capacity. The country’s flagship project, the Lake Turkana Wind Power project, is in fact the largest wind farm in Africa.
The study also reveals a general trend where many African and Asian countries offer lower electricity prices compared to Europe and North America. However, this often comes at the cost of reliability and accessibility, with many low-priced countries struggling with frequent power outages and limited grid coverage.
While Kenya’s electricity prices are high compared to many of its African neighbors, they remain competitive on a global scale. The country’s continued investment in renewable energy and efforts to modernize its power infrastructure could lead to more affordable electricity in the future, potentially improving its global ranking and economic competitiveness.
There’s a caveat to this, however: corruption must be rooted out of the energy sector.
