Case Study 3: High Energy Cost in Kenya
Kenya is a country with a rapidly growing population and economy. However, the country's energy sector is facing a number of challenges, including high energy costs. The average cost of electricity in Kenya is one of the highest in Africa, and this is having a significant impact on businesses and households alike.
Meet Mary
One example of the impact of high energy costs is the story of Mary, a single mother of two who lives in a small village in rural Kenya. Mary runs a small grocery store to support her family. However, in recent months, her profits have been declining due to the rising cost of electricity.
Mary's electricity bill has doubled in the past year, and she is now struggling to make ends meet. She has had to cut back on essential expenses, such as food and medicine, in order to pay her electricity bill.
Mary's story is not unique. Many Kenyans are struggling to cope with the high cost of energy. High energy costs are making it difficult for businesses to operate and for households to make ends meet.
The Kenyan government is aware of the problem of high energy costs and is taking steps to address it. However, it will take time for these measures to have an impact. In the meantime, Kenyans like Mary are struggling to survive in the face of rising energy costs.
📺 Watch the video below to gain a better understanding of the energy challenge in Kenya.
To thoroughly analyze the problem, we can use the Fishbone Analysis, also known as the Ishikawa Cause and Effect Diagram.
Step 1: Identify the Problem/Draw the Fishbone Structure
The first step in the Fishbone Analysis is to agree upon and write down the exact problem. In this case, the problem is the high energy cost in Kenya. Draw a horizontal line across your page, resembling a fishbone spine. This spine represents the main problem (high energy cost in Kenya)
Step 2: Categorize the Causes (Identify Categories)
Next, we need to categorize the potential causes of the problem. These categories can include equipment, materials, systems, external forces, people, and other relevant factors.
Back to the fishbone diagram, extend several diagonal lines from the spine, like ribs on a fishbone, each representing a category (branch) contributing to the problem.
In the context of high energy costs in Kenya, some possible categories could be:
- Government Policies and Regulations: This category includes factors such as energy pricing policies, taxation, and regulatory frameworks that may contribute to high energy costs.
- Infrastructure and Supply Chain: Factors related to the energy infrastructure, transmission, and distribution systems, as well as the availability and accessibility of energy sources, can be included in this category.
- Energy Sources and Generation: This category focuses on the types of energy sources used in Kenya, their availability, and the efficiency of the generation processes.
- Economic Factors: Factors such as inflation, exchange rates, and the overall economic situation can influence energy costs.
- Consumer Behavior and Energy Efficiency: This category includes factors related to how consumers use and manage energy, as well as their awareness and adoption of energy-efficient practices and technologies.
🤔 What other causes of the high energy cost can you think of? Drop them in the padlet below.
Step 3: Identify and Analyze the Causes
In this step, we will brainstorm and identify the specific causes within each category and then analyze their impact on the problem. This process helps us understand the root causes of high energy costs in Kenya.
- Government Policies and Regulations. This can result from:
- Inefficient energy pricing mechanisms
- Lack of transparency in energy pricing
- Inadequate regulation of the energy sector
- Infrastructure and Supply Chain Issues. This can result from:
- Aging energy infrastructure
- Inadequate transmission and distribution systems
- Limited access to energy sources in rural areas
- Energy Sources and Generation Issues. This can result from:
- Reliance on expensive imported energy sources
- Inefficient energy generation processes
- Insufficient investment in renewable energy
- Economic Factors. This can result from:
- Fluctuating exchange rates
- Inflation and rising production costs
- Limited foreign investment in the energy sector
- Poor Consumer Behavior and Energy Efficiency. This can result from:
- Low awareness and adoption of energy-efficient practices
- Inefficient use of energy in households and businesses
- Lack of incentives for energy conservation
Step 4: Identify Root Causes (Ask Why for Each Factor)
In the final step, we need to identify the root causes of the problem by analyzing the causes identified in the previous step. Once the root causes are identified, we can develop appropriate solutions to address the high energy costs in Kenya.
The root causes of the energy challenge include:
- Inefficient energy pricing mechanisms and lack of transparency
- Aging and inadequate energy infrastructure
- Reliance on expensive imported energy sources
- Limited investment in renewable energy
- Low awareness and adoption of energy-efficient practices
❓ Reflection: What other root causes can you think of that can result in the increased cost of energy?
By thoroughly analyzing the problem of high energy costs in Kenya using the Fishbone Analysis, we gain a deeper understanding of its root causes, which in turn helps us to develop effective solutions to address this challenge.