Investment Strategies by Kenya Power and Lighting Company Within the Power Distribution Sector
Abstract
The main purpose of the study is to determine the investment strategies used by Kenya
Power and Lighting Company within the power distribution sector. Adequate investment
in capacity and efficient working of transmission and distribution systems in developing
economies with high growth of electricity demand are important objectives. The literature
review available on investment strategies within the power distribution sector have been
captured and the theoretical underpinnings of investment strategies. In many developing
countries, the electricity system is too weak to meet growing demand and the availability
and reliability of generating capacity is inadequate. Protracted mismanagement, political
interference, subsidized pricing, and corruption all undermine the ability of developing
electricity supply industries to finance and deliver service or attract new private
investment. Spot market pricing is a sufficient condition for an efficient level of
investment. Data was collected using interview guides administered to senior managers
within the company. This involved sample selection and description, research design,
population and sampling design, data collection methods, tools and procedures, and data
analysis and reporting. The data was obtained from the various management team
members belonging to different departments analyzed and compared against each other in
order to get more revelation on the issues under study. The study recommends that
electricity sub sector, costs should be reduced and electricity tariff setting harmonized
and enhancing information asymmetry between policy makers, deliberate measures to
improve penetration of renewable technologies, regulators, providers and consumers. The
study suggest further research on Investment Strategies by Kenya Power and Lighting
Company within the Power distribution sector to supplement the findings of this study by
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providing information on evaluation of Kenya Power and Lighting Company within the
Power distribution sector.
Publisher
University of Nairobi, School of Business