Erratic power leads in factors hurting growth

Power lines. Six in every 10 Kenyan business leaders blame inadequate electricity and lack of infrastructure for slow growth in innovation.  FILE PHOTO  Nation Media Group

In Summary

• “High cost of electricity, constant power outages, poor road networks and lack of penetration of Internet into remote regions of the country, are among barriers to innovation,” he said. 
• Kenya through the Ministry of Energy and Petroleum, plans to replace thermal generators as sources of electricity by increasing production capacity from cheap and renewable options such as hydro, geothermal, coal and liquefied natural gas.  

By LILIAN OCHIENG
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Six in every 10 Kenyan business leaders blame inadequate electricity and lack of infrastructure for slow growth in innovation.
 

The 2014 Global Innovation Barometer study released Tuesday by General Electric profiled over 75,000 business leaders in 25 countries. At least 3,000 business leaders were interviewed in Kenya. 

GE chief financial officer for Africa Thomas Konditi said while releasing the results that Kenya had demonstrated a strong record in innovation.

READ : NEW KENGEN PLANTS TO EASE POWER BILLS
Mr Konditi said that cheap and reliable power should be provided for innovation to thrive. 

“High cost of electricity, constant power outages, poor road networks and lack of penetration of Internet into remote regions of the country, are among barriers to innovation,” he said. 

The study urges the government to hasten power generation to sustain innovation.  

REPLACE THERMAL GENERATORS

Kenya through the Ministry of Energy and Petroleum, plans to replace thermal generators as sources of electricity by increasing production capacity from cheap and renewable options such as hydro, geothermal, coal and liquefied natural gas.  

The country’s main electricity supplier Kenya Power provides 1,250 megawatts to over two million customers, against a peak demand of 1,700 megawatts.  

Business leaders unanimously agreed, at a GE business executive roundtable at Serena Hotel, that infrastructure development was key to the success of power projects as well as innovation. 

“Infrastructure is important for efficient and reliable power supply. Thousands of kilometres of transmission and distribution lines are needed to transport power to end user,” World Bank, trade and competitiveness global practice manager Ganesh Rasagam said.