Rural electrification and micro enterprises performance: some lessons from Muranga county Kenya
Abstract
The purpose of this study was to assess rural electrification adoption by microenterprises
in Muranga County Kenya. The study was guided by two specific objectives which are; to
establish the determinants of rural electrification adoption by Micro and Small enterprises
in Murang‟a County, Kenya and to determine the effect of adoption of rural electrification
on the performance of rural micro and small enterprises in Murang‟a County, Kenya. This
study adopted two stage least squares incase of violation of endogeneity. The population
of this research consists of the 650 small and medium enterprises in Murang‟a. The study
used primary data. Results revealed that, amount of capital invested, nature of business
activity and distance from market significantly influenced the predicted probability of
electricity adoption. Results also revealed that electricity adoption was positive and
significantly related with business performance. The results also indicated that gender,
capital invested and workforce were positively and significantly related to business
performance. It is recommended that Murang‟a County should conduct business
incubation programmes for businesses so as to boost the business performance/turnover
as well as the capital invested. This will have a positive effect on electricity adoption
since well performing businesses are likely to adopt electricity. They should also assist
the businesses to get funds from youth fund and women enterprise fund and this will
increase the capital. The study also recommends that Murang‟a County and electricity
providers should encourage electricity adoption through conducting awareness campaigns
that would sensitize small business owners on the value brought about by electricity
adoption.
Citation
Master of Arts (MA) in EconomicsPublisher
University of Nairobi