Energy use by rural households In Kenya: a case study of welfare

Abstract

Rural electrification can, potentially, enhance the welfare of households if the scarcity of inefficient traditional fuels and/or a rise in income facilitate interfuel substitution towards more electricity use. The aim of this research was to analyze rural energy use patterns and gauge the welfare impact of rural electrification on households. Descriptive techniques and non-parametric statistics were used to evaluate the interfuel substitution to more efficient fuels. Further, regression analysis was used to gain insight on factors influencing the level of electricity consumption. The analysis shows that interfuel substitution in the area of study is hampered by unfavorable electricity tariffs and costly electric appliances. Although connected households enjoy social benefits attributed to electricity use its consumption in the area of study is low and the range of electricity-dependent activities is very narrow. The findings suggest there is need to sustain current efforts to increase woodfuel supply and its end-use efficiency as a part' of the solution to rural energy crisis.For electricity to be the major energy source, the KPLC should work out a tariff structure that encourages its adoption and consumption. Moreover, rural electrification should be treated as an infrastructural project Requiring modification of the REP expansion programme so that connections are made in those rural areas where the expected level and growth of demand appear promising.