The role of the World Bank in power sector reforms in Kenya

Abstract

This research paper explores the role of the World Bank in Kenya's power sector reforms. Because of the bank's and Kenya's relationship with other aid donors, those donors' relations with Kenya generally, and the power sector specifically, are also examined. Power sector reforms cannot be reviewed in isolation from Kenya's macroeconomic reforms, and the International Monetary Fund (IMF), in particular, has also influenced power sector reforms. Macro-economic reform is therefore one of the sub-themes of this study and in this regard, relations with other donors in the context of power sector reforms are also studied. As Kenya's donor relationships are operationalised in the study, a number of '.. issues are highlighted including aid dependency; management issues; institutional, legal and policy framework shortcomings. Poor dialogue between the World Bank, other donors and the government of Kenya is also analysed. Inextricably, the paper explores the long history of Kenya's power sector and how it evolved into a complex network of various entities. It further explains why it was found necessary to reform and streamline this complex network with a view to making it more economically viable and sustainable. The role of the World Bank in these reforms is the basis of this paper.