[kictanet] KENYA POWER TO 'EXIT' RURAL ELECTRIFICATION MARKET - A CASE OF THE TAIL WAGING THE DOG?

[Ali Hussein]

Listers

Kenya Power has announced that they will no longer prioritize Rural Electrification because of what they term unacceptable terms for connectivity. This, even when the Government has offered 2.7B in subsidies to the Monopoly Power company.

I don't need to dwell into the myriad of issues this country's consumers have faced at the hands of this monopoly. Now we have a case where the tail is trying to wag the dog..

http://www.businessdailyafrica.com/Corporate+News/Kenya+Power+dumps+rural+consumers+in+cost+cutting+plan/-/539550/1948510/-/qbmf1z/-/index.html

This level of irresponsibility on a utility solely responsible for electrification in the country is not only unacceptable but bordering on economic sabotage. 

In defense of Kenya Power, the Ag.CEO did say that they are unable to do this Rural thing because they are subjected to the vagaries of the market as they are a public company quoted on the NSE.

I have some questions to the Cabinet Secretary of Energy, the Government at large and listers in general:-

1. Isn't it time to call Kenya Powers bluff and kill this monopoly? You can't at the same time try to protect your monopoly while vomiting on our shoes - read the Kenya People. (sorry but couldn't help the analogy once used by the British Ambassador when he was referring to the Govt accepting grants from the British people and then use the money to buy Chinese vehicles instead of Landrovers! :) what cheek! ) 

2. There has been discussions on this list about whether the whole Power Sector needs to be liberalists ala the Telkom Sector. Maybe there is an Mpesa waiting to happen there...

3. Should the government empower the Rural Electrification Authority to roll out connections in the counties? Are there synergies between this Authority and the yet to be heard of Universal Access Fund? Can the Government find the strength to break silos and work together in this? After all where power goes internet connectivity should be its bedmate.

What's your take? 

Ali Hussein
CEO | 3mice interactive media Ltd
Principal | Telemedia Africa Ltd

+254 713 601113/ 0770 906375

"The future belongs to him who knows how to wait." - Russian Proverb

Sent from my iPad
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