Kenya: Growth Fuels Rise in Demand for Energy

Demand for fuel and electricity increased in tandem with the expansion in economic activities and domestic consumption.

According to the 2008 Economic Survey, the total quantity of petroleum imports registered a 16.4 per cent increase to stand at 3.7 billion tonnes in 2007.

The rise was driven by expansion in manufacturing and transport sectors, which were among the key drivers of growth.
The number of vehicles registered surged by 61 per cent to 85,000 from 52,000 in 2006, driven by increase in buses and a rush to comply with the directive by Finance minister for vehicles to be registered before leaving the port.

Total domestic demand for petroleum products went up by 2.8 per cent to 3.2 billion tonnes from 3.1 billion tonnes.

This was, however, lower compared to the 12 per cent increase in 2006.

The increased demand pushed up the bill for petroleum products by 7.1 per cent, compared to 18.9 per cent in 2006. Planning, National Development and Vision 2030 minister, Mr Wycliffe Oparanya while releasing the survey, Thursday said oil prices at the international market had increased from $62 per barrel to $90.6 per barrel in 2007, and had moved up to stand at over $120 per barrel presently.

AllAfrica