Developing countries have struggled with low electrification rates in the rural areas. This study investigates one major issue impeding the rural electrification programmes high connection payments. The paper uses estimates obtained from a stated preference study in rural Kenya, namely a contingent valuation method completed in 2007, to examine the willingness to pay to connect to grid electricity and photovoltaic services.  The key findings suggest that the government needs to reform the energy subsidies, establish financial schemes and create a multi-level critical analysis of the political economy of energy systems.