The Financing Problem In The Electric Power Sub- Sector
View/ Open
Date
2003-11Author
Njenga, Elizabeth W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study focuses on the financing problem in the electric power sub-sector. The
sub-sector has not been able to supply sufficient electrical power energy to meet
the current demand and it is estimated that only 8% of the Kenyan population
have access to electric power.
The lack of sufficient and reliable electricity supply is attributed to inadequate
infrastructure for generation, transmission and distribution, which has been
brought about by the serious financial constraints facing the sub-sector. The subsector
requires enormous capital in order to complete the on-going capacity
expansion projects, commission new projects and revamp the existing
generation, transmission and distribution facilities.
The objective of the study was to identify the major obstacles faced by the
electric power sub-sector in raising funds. A survey of the five out of the six key
players in the sub-sector comprising of four generating companies and the sole
electricity transmission and distribution company in Kenya was carried out.
Primary data on the various funding constraints from each of the respondent was
collected using the questionnaire attached in appendix I.
The findings of the study were that the major obstacles faced by the electric
power sub-sector in funding its capital budget are inadequate capital in the
domestic capital market and the sub-sectors inability to attract foreign private
capital. Underdeveloped domestic financial and capital markets, high cost of
finance and lack of a well established legal and regulatory framework is
responsible for lack of adequate capital in the domestic capital market. The subsectors
inability to attract foreign private capital was largely attributed to political
risks, economic risks and commercial risks.
Citation
Masters thesis University of Nairobi (2003)Publisher
University of Nairobi. Faculty of Commerce
Description
Degree of Masters in Business Administration (MBA)