This archive report was first published on 18 July 2019.
Published on July 18, 2019, a report by Moody's highlighted the challenges facing Kenya's power sector, making it unattractive to investors.
Kenya Power's freeze on signing new agreements with independent producers and the push for lower electricity costs have contributed to the sector's uncertainty.
The report noted that land acquisition for building power plants and transmission lines remains a perennial problem, while a change in the regulatory framework adds to the industry's uncertainty.
Kenya Power's decision to freeze the signing of new power purchase agreements (PPAs) with producers has been a significant development in the sector.
Additionally, the cancellation of the environmental licence for a coal plant at Lamu may affect how international investors perceive Kenya.
Moody's report stated, 'The power sector faces uncertainties, however, arising from an evolving regulatory environment and weakness in coordination among Government and regulators and in the implementation and politicisation of sector planning.'
Kenya currently has an installed capacity of 2,732MW, with a peak demand of about 1,870MW.
