The Demand for Energy in the Kenyan Manufacturing Sector

Abstract

The manufacturing sector accounts for approximately 10 percent of Kenya's gross domestic product (GDP). The sector's output grew at an average rate of 8 percent per annum between 1970 and 2005. The growth of manufacturing was associated with the greater use of inputs, including all forms of energy. In the government's planning document, Kenya Vision 2030, the manufacturing sector is expected to continue contributing 10 percent annually to Kenya's GDP.1 The manufacturing sector mainly uses electricity and oil as sources of energy in its production processes, distribution, and transport services. The utilization of these two forms of energy, on average, has been rising, resulting in terms of energy and total