Economist David Ndii has waded into the debate over the high cost of electricity in Kenya.
Ndii said that the country was at a crossroads in terms of addressing the cost of energy, arguing that the options on the table are limited and both involve tough outcomes.
The economist’s posts highlighted the government’s tough choice to balance between cost and availability of electricity.
The Chairperson of President Ruto's Council of Economic Advisors indicated that while everyone wants access to cheap and reliable electricity, achieving this goal can be challenging.
“On power bills, we have two choices. Costly power is available 24/7, or cheap power is available a few hours a day, like South Africa,” Ndii said.
Power rationing, also known as load shedding, is a common occurrence in South Africa due to the country's ageing power grid infrastructure and a shortage of generating capacity.
Load shedding is a controlled and planned way of reducing the demand for electricity by switching off the power supply to certain areas or industries for a period of time.
his is done to prevent the collapse of the power grid due to insufficient capacity and to avoid unplanned power outages.
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Load shedding is implemented by Eskom, the state-owned electricity utility that generates, transmits, and distributes electricity in South Africa
Ndii also said that the Kenya Kwanza administration did not promise to provide cheap power in its list of campaign pledges.
“If you cared to peruse our manifesto, you would have noted that cheap power does not feature in our pledges on electricity,” the chair of Ruto’s Council of Economic Advisors added.
Load shedding has significant economic and social impacts, including disruptions to business operations, reduced productivity, and inconvenience to households.
One of the most obvious downsides to costly electricity in Kenya is the financial burden it places on households and businesses.
As electricity prices increase, households must allocate more of their budget to pay their utility bills.
This can cause families to cut back on other expenses, such as food, clothing, and healthcare. For businesses, high electricity prices can impact their bottom line, making it more difficult to remain competitive and invest in growth.
The Energy Petroleum Regulatory Authority is currently considering a proposal to revise the cost of electricity.