A hydro-led power sector frustrated Kenya with the production declined of 9% due to drought. Oil-fired power plants play an auxiliary role and increased the generation by 23% from 2007 to fill in the shortage of hydroelectric power. Increasing dependency on imported oils may raise electricity prices and affect other economic activities negatively. Geothermal is gaining attention with the potential of 4000 MW capacities unexploited in Kenya. To secure the reliable supply of utilities, Kenya plans to build more power plants with the total capacity of more than 2000 MW from the variety of energy sources including geothermal, hydro, wind, coal, and diesel by 2015.
National annual electricity retail sales amounted to 4964 MkWhs in 2007 and the steady growth averaged 5.7% for the last 6 years. Such increasing demand is led by industrial and commercial sectors (71%) followed by households (23%). Extending grids to those who have no access to electricity has been a major policy. The networks are extended across the southern part of Kenya from coastal to western areas through a central capital, totaling the length 41,000km in 2008. The lines also connect neighboring countries including Uganda and Tanzania to trade the bulk of power and will be further interconnected with Ethiopia.
