A recent report by PricewaterhouseCoopers (PwC), a financial advisory firm says Nairobi is the most attractive
destination for foreign direct investment (FDI) in Africa, relative to some of
the largest cities in the continent. It also indicates that Nairobi is a
regional financial services hub, only rivalled by South Africa’s commercial
capital, Johannesburg. To attract more investors into investing into the
country and more specifically in the city, there must be enough power in form
of electricity.
Currently the
production of electricity is shorter than the supply. The country produces only
1,700 MW of electricity while the country consumes more than 1,900 MW of
electricity. It means therefore that the country is forced to import
electricity from the neighboring Uganda. There is low supply of energy and this
has contributed to lack of major investments in the sector by the private
sector and general investments as a whole.
High power loses and low
voltages have contributed to high tariffs. This, together with other factors
such as insecurity has shunned away the potential investments in the country.
Currently installed
hydro power will be able to produce only a maximum of 3000 MW of electricity.
The wind power producing 5.45 MW while economic benefits offered by solar
technologies among the population are not enough to also support the
manufacturing industries.
Geothermal seems like
the remaining alternative since the hydro power which depends on rainfall is
nearing its capacity. With current trends of drought experienced in the country,
it is clear enough that hydroelectric power does not have a good future.
Geothermal energy is
estimated that it will produce a range of about 7000 to 10000 MW of
electricity. However, this will not be enough as the estimated consumption in
the country is expected to be 17,000 MW. In order to bridge this gap and for
Kenya to achieve middle-income status, nuclear energy has been determined to be
the best way to produce safe, clean,
reliable and base load electricity.