Kenya is discussing with neighboring Ethiopia on importing electricity from Addis Ababa to offset a shortage in power occasioned by insufficient rains.

Kenyan President Mwai Kibaki said on Thursday the east African nation is also discussing with the Development Bank of Southern Africa on how to finance the project.

"The government is discussing with the Ethiopian government so that we can import power from that country. We want to ensure that Kenyans never have to experience power rationing again, even as we are continuously extending the national power supply to our rural communities," Kibaki told the nation in his address to celebrate the 43rd year of self rule.

"We are experiencing a remarkable increase in the demand for power due to the growth of industry and the rural electrification program that we are implementing. Currently, there are 130 rural electrification projects being implemented throughout the country, and this number will be doubled by the end of this year," Kibaki said.

Ethiopia and Kenya are jointly seeking 1 million U.S. dollars from the African Development Bank to interconnect power systems in the two countries.

The Development Bank of Southern Africa is also expected to provide additional funding that would also facilitate a feasibility study for the power project.

Last month, Kenya's acting Energy Minister Henry Obwocha said the study is expected to be complete by May 2007.

"This would pave way for implementation of a high voltage line from Ethiopia to Kenya that is expected to be in service by 2009," Obwocha said.

In addition to power produced locally, Kenya, which has had its worst drought since 2003, imports electricity from neighboring Uganda.

But Kibaki said in areas that are far from the national grid, his government would be investing in solar power for schools and health centers.

Kenya's neighbors are also facing power shortfalls with Uganda and Rwanda procuring emergency plants while Tanzania has announced plans to ration power following the devastating drought that has affected the sub-region.

Kenya suffered serious power rationing in 2000 which severely undermined economic activity.

The bulk of Kenya's electricity is produced through hydro dams run by the Kenya Electricity Generating Company.

Hydro power generation accounted for about 53.5 percent by December 2005, followed by thermal at 28.6 percent and geothermal 17 percent.

Source: Xinhua