Overview
With an increase in population and consumption and the exorbitant cost of building power plants and distribution networks, the inability to provide electricity to meet the domestic requirement is a pressing challenge for many developing countries. Driven by continued migration from rural areas to cities, demand for basic services often remains unanswered. Moreover, the lack of these vital services – especially in the manufacturing sector – slows down economic growth and deters investors from setting up businesses.
Rural displacement results in growing pressures on urban infrastructure and labour markets, and the emergence of impoverished and highly dense areas lacking the most basic living conditions. It also leads to slow economic output of key sectors, including agriculture and livestock, contributing to low volume of exports.
To support the overall development process in Kenya, ADFD financed the establishment of electricity networks in five rural areas. In addition to improving the quality of life of the resident population, the funding helped provide the necessary energy supply to establish vital projects in the services sector that stimulate commercial and industrial growth, and attract investments.
