Rural electrification to expand markets

Rural electrification to expand markets

Apart from the known benefits of rural electrification-which include ;

·         empowerment of rural population in education,

·          health,

·          lighting,

·         modern farming, fish farming,

·         employment creation,

·         security enhancement,

·         improvement in standard of living, among others.
Rural Electrification will serve a major boost in expanding markets through spread, availability and usability of technology. Online marketing is the order of the day owing to the fact that a large number of the population own mobile phones -mostly internet enabled. Leave alone internet availability but marketing through short messages (SMS) and mobile  applications has been embraced as well.

With the already large number of “customers” already on the web(connected worldwide) and available through electronic devices, companies are craving for the numbers to increase so as to reach out to more customers through the now more efficient marketing media.

Availing electricity will trigger an expansion of technology-user scope in Kenya hence connecting people all across the world, enhancing innovation and creation of consumer-specific products by respective marketers.

The only hindrance to the spread of technology and technological advancements has been access to affordable, reliable and sustainable energy.

Modern energy services can help improve the quality of life for millions around the world and underpin progress in all areas of development.

Kenya’s Internet Penetration Now Stands at 54.8% or 22.3 Million Users

The Kenya National Bureau of Statistics released the 2015 economic survey highlights today. According to the report the economy expanded by 5.3% in 2014 compared t0 5.7% in 2013.  One of the sectors of the economy that experienced the biggest growth was the ICT sector that expanded to 13.4% from 12.3% in 2013.
An interesting takeaway from the report was Kenya’s internet penetration which stood at 54.8% of the population or 22.3 million Internet users. Currently around three billion people of the world’s population access the internet which is around 40% of the global population. This means Kenya has by far beaten the global average by far.  This growth is attributed to increased affordability of Internet services as provided by ISPs which  saw the price of browsing the Internet become more affordable.  The growth of E-commerce has also led to increased usage of the internet with Kenyans taking up online shopping.  Kenyans have also used the internet for utility services such as online reading of newspapers and online banking services.  The government has also heavily invested in e-government services such as online renewal of driving licenses which, have driven the surge in internet usage.
Internet services in Kenya are delivered through various platforms including mobile networks, fixed wireless access, satellite networks, fiber optic and cable networks. Over the same period, the number of internet subscriptions increased to 60.4% with 99.3 percent being mobile data Internet subscriptions. This is attributable to increased affordability and availability of smart phones that facilitate access to internet services including social media sites. Terrestrial wireless data Internet subscriptions (Wimax) decreased by 23.9 percent majorly due to proliferation of fiber optic.  The fiber optic connectivity, which has been on an upward trajectory, grew by 19.2 percent in the
Other interesting takeaways included the total domestic Short Messaging Services (SMS) sent that  increased by 38.5 per cent to 27.5 billion SMS in 2014. Over the same period, the mobile money subscriptions reached at 26.0 million, representing a penetration rate of 60.6%. cash deposits made via mobile money agents stood at Kshs. 1.3 Trillion while the total transfers increased by 24.7 per cent to KSh 2.4 Trillion. The broadcasting sub section, implemented the digital migration in the country, which added 36 digital Kenyan TV stations to the existing 14 analogue stations.


However ,according to a report by Zachary O. Ayieko,CEO Rural Electrification Authority during the AEI Practitioners Workshop- Dakar ,Senegal 2011, he outlined the following challenges in the process of electrification in rural Kenya, but outlining the possible solutions to ensure the same.
i) Inadequate Funding

Suggested solutions

• Increased Budgetary allocations

• Community participation and Public -

Private partnerships

• Provision of free way leaves

ii) Population Distribution in the Rural Areas

Suggested solutions

Land reforms that encourage organized group settlements

iii) High connection fee about US$ 400

Suggested Solutions

• Increased funding for extension of lines

• Deferred payments

• A revolving fund

• Aggressive marketing

 iv) Vandalism of power line – e.g. transformers

Suggested Solutions

• Promote community participation/ownership of projects

• Placement of transformers in secure areas

FACTORS CONTRIBUTING TO ACCELERATED ELECTRICITY ACCESS

• Lead in Government Commitment

• Lead in Local funding

• Support from Development Partners

• Establishment of committed Lead Agencies

• Passion by stakeholders

• Community involvement

• Bulk purchase of materials

• Use of labour and transport contractors

• Promotion of organized settlement

The Government of Kenya is the basic supporter of this initiative. REA is currently focusing on developing framework for the promotion of photovoltaic solar panels among rural households and private sector and is open to have collaboration in this regard with foreign investors. This project is a practical example for the promotion of renewable energy sources at grass root level and the changes that it can bring into the lives of masses. However, the project still primarily relies on fund from government and foreign investors. There is a dire need to increase the market value of this project so that it would be able to generate revenue to sustain and grow further in years to come.