Electricity consumers in East Africa will continue to pay high prices despite significant investments in generation plants that have resulted in surplus output of power.
It is increasingly emerging that the promise of cheap power will not materialise any time soon, mainly because of policy and planning failures that have culminated to a mismatch between supply and demand for power.
The three big economies Kenya, Uganda and Tanzania’s combined peak electricity demand now stands at about 3,300 MW, way below the installed capacity of 5,500 MW.
For investors who have pumped billions of dollars into East Africa’s energy generation, the lack of capacity to consume available power is turning out to be a huge financial risk. Most of them relied on foreign loans with strict payment schedules that are now starting to loom large.
That is not all. Total installed capacity is expected to hit 10,000 MW in the medium-term with completion of ongoing projects but demand is expected to grow at a steady pace of about six per cent per annum saddled with subdued manufacturing sector.

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