Energy and its role in the Big 4 Agenda

Energy CS Charles Keter launches Phase Two of the Last Mile Electricity Connection program at Esinoni in Narok West. Energy is a crucial pillar of The Big Big 4 Agenda. [Robert Kiplagat, Standard]

The frenzy of activity in the corridors of power points to one direction. It’s an all-systems-go for the Big Four agenda projects.

The government has begun fine-tuning and aligning its resources towards revving up manufacturing, boosting food production, security, building affordable hous­ing and widening access to Medicare.

These goals, to be achieved in the next five years, form the pillars of the government’s medium term development target.

Emphasizing the correlation be­tween electricity consumption and economic growth, we take another look at the truism that economic empowerment will always depend on accessible, stable and affordable power.

A lot has been said on improving supply and reduction in cost of power for manufacturers. Lest we forget, energy is also an enabler that creates the very environment where demand for manufactured goods and services can exist. We have chosen to understand the role that energy has to play in the attainment of Big 4 Agenda based on being an enabler in the following aspects:

Internet connectivity

Energy allows us to communicate and collaborate on a global scale. Digital and mobile advancements have enabled breakthroughs in how we create and understand informa­tion and data – which in turn em­powers us to make better decisions, including how we can use resources most effectively and efficiently.

The rapid expansion of electri­fication to all schools and trading centres is accelerating the flow of information which is crucial in trade and creating demand for products. Extending access to basic connectivity could enhance educa­tion systems, healthcare delivery, and other services critical to human development.

e-government

Digitisation of government services is one key area where energy plays a key role with access to Huduma centres, mobile phone chargers and Laptops as the first steps in improv­ing factors of production. Goods and services can now be traded online across the globe creating employment and a $1billion dollar industry in Kenya. Energy is allowing more people to access educational and knowledge resources, opening new gateways of opportunity.

Transport has traditionally re­quired a huge infrastructure invest­ment, as well as substantial energy consumption to fuel mobility.

As new technologies create new options, norms and models for mobility are changing rapidly. Gains in solar-power technologies have made possible to fuel bicycle and cars. Dramatic improvements in battery technology have increased the use of electric cars and hybrid cars in Kenyan market.

Energy will impact every aspect of transportation by making it easier to move from one place to another.

Internet and free movement of people and goods across markets have made it possible for investors to put up manufacturing facilities across the country and create em­ployment.

With an access rate of above 70 per cent, internet opens up opportunities for value addition and manufacturing in rural areas.

Re­search has shown that if 20 percent of small scale farmers can en­gage in value addition activities their incomes will increase by 50 percent. There is a strong correlation between energy access rate and reduction in poverty. It is critical for the government to develop moni­toring and evaluation programs to assess the impact of increase in the electricity access rate from less than 30 percent in 2013 to currently over 70 percent, which is a fertile ground for the much awaited industrial take off.

 

Therefore, the government must offer incentives to market access to agriproducts.  The persistent frustration of small scale traders at every event across the country year in year out without scaling up is leading to fatigue among the entrepreneurs .The need is to scale up these facilities like the Export Promotion Council to close the gap between the lucrative last mile customer and the producer is very much underfunded. Billions must be poured in to allow small scale traders to upscale and encouraged to have a mix of renewable and grid for lower cost of production.

With over 70 percent access rate there is need affirmative action to drive cottage industries and discourage importations.

The country must fund the last mile activities of market entry and expansion. Hence the high access rate and internet connectivity that have brought in a world of business opportunity are not being felt at the macro level.

James Ngomeli Energy Communication specialist