Effect of Off-grid Power on Growth of Micro, Small and Medium Size Enterprises in Kenya: A Case of MSMEs in Bungoma County

Abstract

This study sought to establish the effect of off-grid power on growth of micro, small and medium size enterprises in Bungoma County. The study specifically focused on the effects of access to off-grid power, affordability of off-grid power and the unreliability of off-grid power. The study anchored on three theories namely the Diffusion of Innovation theory, Adam Smith Theory of Economic Growth and the Theory of Economics. The study adopted a descriptive research design. This study was conducted in Bungoma County where majority of the rural electrification programs aimed at connecting micro, small and medium size enterprises are situated. In Bungoma County, approximately 12,678 micro, small and medium size enterprises are in operation. Therefore, the target population of the study included 12,678 MSMEs owners in Bungoma County. The study used random sampling to select 385 MSMEs owners who were the respondents selected from the target population of 12,678 micro and small size enterprises. The study used primary data, which was collected using questionnaires, through simple random sampling to come up with the final sample. In this study, descriptive statistics, which involves frequencies and percentages, was used in analysis. The measures of central tendencies that was used in this study was standard deviation mean and dispersion respectively. The others that were used to analyse the relationship of the dependent and independent variable was inferential statistics; regression coefficient and bivariate correlation. The result obtained in this study was presented using tables and charts. The study findings were presented in form of tables, charts and graphs. The study findings revealed that unreliability of off-grid power had a negative and significant relationship with the performance of micro, small and medium size enterprises. The study findings also revealed that access to off-grid power and affordability of off-grid power had a positive and significant relationship with the performance of micro, small and medium size enterprises. The study findings recommended that micro and small size enterprises in Bungoma County should invest more in access to off-grid power and affordability of off-grid power practices as these off-grid power practices improve the supply chain performance of micro, small and medium size enterprises.