New public management and private sector development: The case of the Kenyan electricity sector

Søren Thygesen

Student thesis: Master thesis

Abstract

This thesis deals with private sector development in Kenya’s electricity sector, which has some unique characteristics, both in terms of policymaking but also in terms of opportunities for electricity generation. Kenya has begun an implementation of new public management in the electricity sector, and is thus moving from a monopolistic sector to a liberal market form. In this regard, reforms have been undertaken in order to develop the private electricity sector, with a high focus on renewable energy. Through a single-case study, this Master’s thesis abductively investigates the research question: How is private sector development promoted by the implementation of new public management in the electricity sector in Kenya? The aim of this thesis is to investigate how the implementation of new public management in Kenya’s electricity sector has had an effect on the institutional setup in the electricity sector, and further how the changes in the electricity sector’s institutional setup has affected private sector development in Kenya’s electricity sector. Hence, the knowledge purpose of this thesis is to firstly describe the electricity sector as well as the actual implementation of new public management in the sector. It also seeks to describe the institutional setup in the electricity sector and explain the relationship between the new public management implementation and the institutional setup. The thesis further seeks to explain the relationship between the institutional setup, as an effect of new public management, and private sector development, operationalized through market creation, market functioning, and market participation. Lastly the thesis engages in a discussion about if new public management sustains the focus on renewable energy. In order to answer the research question a theoretical framework consisting of the three variables of adaption of new public management, enabling conditions in the institutional setup, and market creation, functioning, and participation, has been developed by two underlying hypotheses. The framework, and thereby the hypotheses, are tested according to the hypothetical-deductive approach. The thesis concludes that new public management has a positive effect on the institutional development and private sector development, by creating a more inclusive framework. It also notices that new public management and a sustained focus on renewable energy is context dependent, and therefore new public management cannot be seen as a tool towards sustaining green energy development.

EducationsMSc in Business, Language and Culture, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2011
Number of pages116