Firms Are Plugging Themselves In

Power shortages in Kenya cost the country's firms on average 6.4% each year in lost sales revenue, according to the World Bank. The World Bank recently approved a US$300mn loan for Kenya to expand its national generation capacity, part of a US$1.4bn government investment in the energy sector, yet companies operating in Kenya continue to seek licenses to construct their own power generation facilities. This reflects the fact that government investment in energy production could take years to bear fruit and may not significantly reduce prices, which are approximately four times higher than in neighbouring Egypt.

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