Abstract:
In Kenya energy provision is essential to the growth of the economy, there are several challenges in relation to electricity connectivity in Kenya some of these challenges include weak power transmission, poor distribution of electricity, high cost of power among others. To achieve our economic goals we must addre s these challenges This study gives a clear insight of the primary factors that are responsible for the increased demand of electricity in rural Kenya. The primary determinant of the demand of electricity in rural Kenya are: the number of households, the price of electricity per unitand income in rural areas in Kenya. These determinants are regressed using a multiple regression model then analyzed and the findings interpreted. Though the study comprises only the three main factors that affect electricity demand there are other factors that are worth mentioning they include: the growing usage of electric appliances in the rural households, the type of weather, increased industrialization in the rural areas and interest rates among others. This study provides the government of Kenya and other interested parties with the necessary statistical model, that can be used to determine given, the number of households, price of electricity per unit,the income of people living in the rural Kenya and other factors held constant, the demand of electric power at any given time. This can help the government to know the resources needed to close the gap that exists between the supply of electricity in rural Kenya and the demand. Energy is one of the main pillars in any economy. Kenya, which is our case study, is dominantly rural therefore this study is of great concern to the economist
