Low energy prices a boon for Kenya's economy 2015
LOW AND DECLINING energy costs are set to be the catalyst for economic growth in Kenya this year. And - depending on how long the price of oil remains low- energy prices could remain key drivers in the short run. Analysts, including the World Bank expect crude oil prices to remain depressed into 2017. This means Energy prices, coupled with infrastructure development, will determine the pace of economic growth, employment, investment, the shilling’s exchange rate and wealth distribution in Kenya. And going by the current energy trends, we may not be wide off the mark. Forget tourism, forget agriculture and insecurity. Oil and electricity prices, coupled with infrastructure development, will drive growth in Kenya between 2015- and 2017. Let’s look at some numbers: Crude Oil prices have declined from US$110 in January last year to US$43 yesterday, January 2015. In January 2014, geothermal power provided only 179 MW or 24 per cent of the 747 ...