Socio-Economic Effects of Rural Electrification on the Household Well-Being of Proprietors of Micro and Small Enterprises in Kenya

Abstract

Kenya’s poverty rates remain relatively higher implying low levels of household well-being compared to other lower middle income countries. A developing country like Kenya requires electricity for startup of farm and nonfarm micro and small enterprises to enhance well-being of a majority of the rural inhabitants. It is in this regard that an explanation is required studying socio-economic effect of rural electrification on the household well-being of proprietors of micro and small enterprises in Kenya. The specific objectives of the study were to investigate the effect of; skills and knowledge application, access to healthcare, income level and employment status due to rural electrification on household well-being among proprietors of micro and small enterprises in Kenya. The study also sought to determine the moderating effect of electricity supply on the relationship between socio-economic effect of rural electrification and household well-being of proprietors of micro and small enterprises in Kenya. The study adopted a cross-sectional descriptive survey design. The target population for this study comprised 172,554 proprietors of micro and small enterprises registered in Kenya by 2015. The study adopted multistage sampling involving systematic and simple random sampling procedures due to the large target population involved. Primary data from proprietors of rural micro and small enterprises in eight counties namely; Kakamega, Bungoma, Nakuru, Busia, Bomet, Siaya, Kericho and Kirinyaga forming a sample size of 418 was used. The data collection instrument was pilot tested on 5% of the sample size. Pearson correlation analysis showed that there was a general moderate positive relationship between socio-economic effects of rural electrification and household well-being among proprietors of micro and small enterprises. Combined multiple regression analysis revealed that there was a significant positive relationship between socio-economic effects of rural electrification (access to healthcare, income level and employment status) and household well-being among proprietors of micro and small enterprises. The study findings also revealed a significant direct moderating effect of electricity supply on the relationship between socio-economic effects of rural electrification and household well-being among proprietors of micro and small enterprises. It was concluded that socio-economic effects of rural electrification have an influence on household well-being among proprietors of micro and small enterprises in Kenya. It is recommended that the Kenyan government should come up with clear policies and review legislations to ensure Rural Electrification Authority is given a clear mandate, authority and resources to fulfil their mandate, and ensure accountability. Future research is recommended on the effect of skills and knowledge application due to rural electrification on the household well-being in a different social setting to establish whether similar results would be obtained.