An improved policy and regulatory environment would help the power sub-sector to improve financial performance and create an enabling environment for private investment and management of power plants. The institutional support component would help to improve access to electricity by supporting policy that changes and encourages the use of photovoltaic systems. It would also promote the implementation of sound strategies for providing adequate and affordable energy to poor rural and urban households. Kenya's economy relies primarily on agriculture and the service sector, including tourism. Most of the population depends on biomass for household energy needs, although the consumption of electricity and petroleum products is higher than the average for Sub-Saharan African countries.
Electricity supply is based from hydropower, while crude oil and petroleum products are imported.
Lack of generating capability will constrain economic growth until new power plants are commissioned.