This paper investigates the relationship between Kenya electricity consumption, real disposable income and residential electricity prices. The research employs the Engle and Granger two-step procedure and Error Correction Model (ECM) method to a time series data over the period from 1980 to 2009 to analyze the electricity demand and forecast the electricity demand up to the year 2030. The model suggests a co-integration with long-run price and income elasticity of -0.095 and 0.1 respectively with 4% increase in consumption of other non-economic factors. The low, medium and high scenario’s peak demand forecast by the year 2030 is 4,813MW, 5,291MW, and 7,337MW respectively. Policy wise, a l
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