Kenya is one of the fastest growing economies in the sub-Saharan region. As per World Bank estimates, Kenya will see 4.9% growth in FY2022-23. Presently, with a population of 56,579,870, Kenya provides electricity access to more than 75% residents (93.3%, 65% rural). By 2030, the country aims to electrify 100% of its population and provide competitively priced, dependable, safe, and sustainable energy. The present government is proactively creating conducive environment for the power sector and formulating favourable policies to support growth.
As per the vision 2030 document, the Kenyan government wants to transform Kenya into an industrialized, middle-income country providing better quality life to its citizens. The slew of projects announced will enable the government to focus on the rural electrification program / electricity access program.
Kenya a renewable energy leader Kenya is a leader in clean energy development with 92% of electricity from renewable sources, of which 44% came from geothermal, 36% from hydropower, wind, and solar. Fossil fuels contributed 7% to the energy mix. Additionally, Kenya has prioritized low-carbon resilient investments to reduce its already low greenhouse gas emissions to 32% by 2030.
Kenya has established policies and a regulatory environment to spearhead green investments. The USAID backed Power Africa initiative has enhanced access to clean, reliable, and affordable electricity in Kenya. Combined with private sector participation, the initiative has helped more than one million Kenyans access electricity through new mini grid installations and solar home systems.
The power demand in Kenya is increasing. This translates to capacity addition in power generation, transmission and distribution. The discovery of coal and oil reserves will increase the need for construction and thus, energy. According to official data, the total installed capacity of Kenya stands at 2990 MW (which is estimated as just 2% of its potential). Kenya’s energy mix comprises of 838 MW from hydro, 863 MW from geothermal, 437 MW from wind power, 173 MW from solar, 677 MW from thermal and 2 MW from biomass. Of these, geothermal energy remains the main stay. The country is attracting more investments in geothermal and renewables segment including solar and wind. The government aims to reach 100 GW by 2040. According to estimates, the country requires investments worth approximately US$300 billion to obtain the goals.