Energy Policy & Regulation

Kenya is emerging as a regional leader in clean energy, with nearly 90% of its electricity now generated from renewable sources such as geothermal, hydro, wind, and solar. According to the International Energy Agency (IEA), Kenya accounted for almost three-quarters of all solar home system sales in East Africa in 2023, making solar power a game-changer for rural communities. One in five households now uses solar-powered mini-grids or standalone systems, helping reduce reliance on unreliable central grids.

The government’s Draft National Energy Policy (2025–2034), developed with IEA support, is set to strengthen this progress by modernising the grid and expanding private investment in transmission and distribution. With geothermal energy providing one-third of electricity and projects like the Lake Turkana Wind Farm leading the way, Kenya is demonstrating how renewable deployment can boost energy security and reduce costs. Still, challenges persist, as nearly 23% of generated power is lost due to theft, billing inefficiencies, and outdated infrastructure.

Despite these advances, millions of Kenyans—particularly in rural areas—still rely on charcoal, firewood, and kerosene for cooking. To address this, the government is implementing the Kenya National Cooking Transition Strategy, which aims to achieve universal access to clean cooking energy by 2028. Officials warn that the use of polluting fuels not only drives deforestation but also contributes to respiratory diseases and household economic strain.

Investment flows into the sector remain strong, with the government launching tenders for 80 MW of solar projects and development partners like the French Development Agency and Sun King expanding solar access. A recent $156 million financing deal backed by international banks is expected to deliver 1.4 million solar home systems in rural Kenya. As the IEA’s Deputy Executive Director, Mary Burce Warlick, observed, Kenya is showing how the strategic use of clean technologies can transform lives and position the country as a clean energy hub in Africa.