| dc.description.abstract | Solar photovoltaic (PV) technologies are emerging as an important factor input
in promoting inclusive and sustainable economic development. Particularly, the
high job intensity nature of the solar PV industry makes it more feasible for low
carbon technologies with a high potential for job creation. This study explores
the employment potential of solar PV in Kenya by examining the current
growth patterns of the industry, the constraints to growth, the prevailing jobs
in the industry, and the skills demand versus the skills supply in the industry in
Kenya. The study adopts a mixed method of analysis using value chain analysis
methodology, employment elasticity, and employment factor models to estimate
the solar PV job creation potential in Kenya. The study identifies that Kenya
solar PV is characterized by a short value chain with only two firms engaging in
the manufacturing of solar PV systems, while the majority of the firms actively
engage in the distribution, installation, operation, and maintenance phases of
the value chain. Using employment factor, the study estimates a compounded
annual job growth rate of 51 per cent between 2012 and 2018 and 26 per cent
between 2018 and 2024, with the jobs increasing to an estimated 48,306 jobs
in 2024, which are distributed along the value chain: operation & maintenance
(40%) and construction and installation (40%); manufacturing (12%);
distribution (5%) and R&D (3%). The skills availability ratio for the certificate
and diploma education levels are below the ideal ratio of 10, demonstrating
inadequacy of skills. High capital, installation, and maintenance costs; limited
financial schemes for solar PV investments; constraining policy and regulatory
directions; limited transmission and distribution network in solar energy-rich
areas; the low presence of local manufactures; and skills unavailability and
inadequacy are the key constraints limiting the industry’s growth. | en |
