REPUBLIC OF KENYA

MINISTRY OF ENERGY & PETROLEUM

STATE DEPARTMENT FOR ENERGY

National Energy Policy 2025 – 2034

Draft One
Foreword
As Kenya progresses towards achieving sustainable and inclusive development, energy remains a
key driver for economic growth. The National Energy Policy 2025–2034 is therefore a tool in
spearheading our country's vision of equitable energy transition, focusing on innovation,
resilience, and sustainability to meet the needs of all Kenyans.
This Policy seeks to address the challenges of energy access, affordability, and security whilst
promoting clean energy solutions to reduce our dependence on fossil fuels and driving green
industrialization. With over 25% of the population still lacking electricity access, particularly in
rural areas, it is crucial that we expand our energy infrastructure and leverage renewable energy
resources, including solar, wind, geothermal, and bioenergy, to provide reliable and affordable
energy to all corners of the country.
This Policy sets forth bold strategies to ensure universal access to electricity by 2030, optimize the
use of Kenya’s vast renewable energy potential and accelerate the uptake of clean cooking
technologies among other initiatives. Through strategic investments, partnerships, and innovation,
we aim to transform our energy sector to power the economy, improve livelihoods, and ensure
environmental sustainability.
The roadmap outlined in this document is also in line with Kenya’s commitment to the global
climate change agenda, particularly the Paris Agreement, and integrates climate-resilient energy
systems that will foster economic growth and reduce emissions. We are committed to promoting a
just energy transition, ensuring that no Kenyan is left behind, and that energy access contributes
to improved quality of life, especially in marginalized communities.
I am proud to present the National Energy Policy 2025–2034, which I believe will guide Kenya’s
energy sector into a future of sustainable, equitable, and resilient energy solutions.

Hon. Opiyo Wandayi

Cabinet Secretary for Energy & Petroleum

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Preface
The National Energy Policy 2025–2034 is a significant milestone in Kenya’s ongoing
transformation towards a sustainable, inclusive, and resilient energy future. Energy is at the heart
of Kenya's socio-economic development, and as we embark on this new policy journey, we
recognize that reliable, competitive, affordable, and clean energy access for all Kenyans is essential
to realizing our national development aspirations.
Over the years, Kenya has made remarkable strides in expansion of electricity access, with
majority of its population now connected to electricity. However, challenges remain, particularly
in rural areas, where access remains limited, and in the clean cooking sector, where over 69% of
households still rely on traditional biomass fuels. This Policy aims to address these gaps, laying
the foundation for a comprehensive and inclusive energy transition that is centered on renewable
resources, energy efficiency, and the promotion of innovative technologies.
The Policy is grounded in Kenya's commitment to achieving the Sustainable Development Goals
(SDGs), particularly Goal 7: Affordable and Clean Energy, and aligns with our global climate
commitments, including the Paris Agreement. It is designed to guide our energy sector towards a
just and equitable transition that benefits all, particularly vulnerable and underserved communities.
By prioritizing renewable energy resources, advancing the adoption of clean cooking solutions,
and promoting energy efficiency, this policy sets a clear path toward ensuring that every Kenyan
has access to reliable and sustainable energy.
The Government of Kenya is committed to supporting the implementation of this Policy through
strategic partnerships, effective resource mobilization, and innovation. This document sets the
framework to drive this transformation, ensuring that energy plays its rightful role as a catalyst for
economic growth, social development, and environmental sustainability.
I am confident that this National Energy Policy will serve as a beacon of progress and
transformation for Kenya's energy sector and economy in the coming decade.

Alex K. Wachira
Principal Secretary, State Department of Energy

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 Table of Contents
Foreword ............................................................................................................................................i
Preface .............................................................................................................................................. ii
ACRONYMS ...................................................................................................................................... vii
Executive Summary............................................................................................................................. x
CHAPTER ONE: INTRODUCTION ...........................................................................................................1
1 Introduction ................................................................................................................................1
1.1 Role of Energy in the National Development ............................................................................1
1.2 Background ............................................................................................................................1
1.3 Rationale for Government Action ............................................................................................2
1.3.1 Justification for Government Action .................................................................................2
1.3.2 Scope of the Policy..........................................................................................................2
1.4 Policy Objectives.....................................................................................................................2
1.5 Guiding Principles ...................................................................................................................2
1.6 Political Alignment ..................................................................................................................3
1.7 Structure of the Policy Document ............................................................................................3
CHAPTER TWO: SITUATION ANALYSIS ...................................................................................................4
2 Status of the Energy Sector ..........................................................................................................4
2.1 Electricity Access ....................................................................................................................4
2.2 Electricity Generation, Transmission and Distribution................................................................5
2.2.1 Electricity Generation .....................................................................................................5
2.2.2 Transmission and Distribution..........................................................................................8
2.2.3 System Operations........................................................................................................ 11
2.2.4 Power Trade ................................................................................................................. 11
2.2.5 Captive Power and Net Metering ................................................................................... 12
2.2.6 Energy Storage Systems (ESS) ........................................................................................ 13
2.2.7 Reliability and Ancillary Services .................................................................................... 14
2.2.8 Demand Stimulation ..................................................................................................... 14
2.3 Clean Cooking and Bioenergy ................................................................................................ 15
2.3.1 Clean Cooking .............................................................................................................. 15
2.3.2 Liquefied Petroleum Gas ............................................................................................... 16
2.3.3 Electric Cooking ............................................................................................................ 17
2.4 Bioenergy Situational Analysis ............................................................................................... 17

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 2.4.1 Cooking and Heating ..................................................................................................... 17
2.4.2 Bioenergy and Road Transport....................................................................................... 18
2.4.3 Sustainable Aviation and Marine Fuels ........................................................................... 19
2.4.4 Cogeneration, Gasification and Waste to Energy ............................................................. 20
2.5 Diverse and Productive Uses of Energy................................................................................... 21
2.5.1 Emerging Technologies.................................................................................................. 21
2.6 Green Hydrogen ................................................................................................................... 22
2.7 Energy Transition and Climate Change ................................................................................... 23
2.8 Carbon Market and Carbon Finance ....................................................................................... 23
2.9 Critical Energy Minerals......................................................................................................... 24
2.10 Development of Other Geo-energy Resources .................................................................... 25
2.10.1 Coal Resources for Energy Production ........................................................................ 25
2.11 Natural Gas ...................................................................................................................... 26
2.11.1 Crude Oil and Liquid Petroleum Products ................................................................... 26
2.12 Energy Efficiency and Conservation .................................................................................... 27
2.13 Energy Financing, Pricing and Procurement ........................................................................ 28
2.13.1 Energy Financing ...................................................................................................... 28
2.13.2 Energy Pricing........................................................................................................... 29
2.13.3 Power Procurement .................................................................................................. 31
2.14 Energy Planning and Devolution ........................................................................................ 32
2.14.1 Integrated Energy Planning........................................................................................ 32
2.14.2 Devolution of Energy Functions ................................................................................. 32
2.15 Land, Environment, Gender, Health and Safety ................................................................... 33
2.15.1 Land and Energy ....................................................................................................... 33
2.15.2 Environment and Energy ........................................................................................... 34
2.15.3 Gender Equality, Diversity and Social Inclusion on Energy (GEDSI)................................ 34
2.15.4 Occupational Health and Safety ................................................................................. 35
2.16 Research, Development and Innovation ............................................................................. 36
2.17 Human Resource Development & Retention ....................................................................... 37
2.18 Cyber Security and ICT ...................................................................................................... 38
CHAPTER THREE: ENERGY POLICY STATEMENTS .................................................................................. 39
3 Overview .................................................................................................................................. 39
3.1 Electricity Access ................................................................................................................. 39

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3.2 Development of Renewable Sources and Non-renewable Sources ........................................... 39
3.2.1 Generation ................................................................................................................... 39
3.2.2 Transmission and Distribution........................................................................................ 42
3.2.3 Captive Power and Net Metering ................................................................................... 44
3.2.4 Energy Storage Systems (ESS) ........................................................................................ 44
3.2.5 Reliability and Ancillary Services .................................................................................... 45
3.2.6 Power Market............................................................................................................... 45
3.3 Clean Cooking and Bioenergy ................................................................................................ 45
3.3.1 Clean Cooking .............................................................................................................. 45
3.3.2 Liquefied Petroleum Gas and Natural Gas....................................................................... 46
3.3.3 Electric Cooking Solutions ............................................................................................. 47
3.3.4 Bioenergy..................................................................................................................... 47
3.3.5 Cogeneration, Gasification and Waste to Energy ............................................................. 48
3.3.6 Sustainable Aviation and Marine Fuels ........................................................................... 48
3.4 Demand Stimulation ............................................................................................................. 48
3.5 Diverse and Productive Uses of Energy................................................................................... 48
3.6 Emerging Technologies.......................................................................................................... 49
3.7 Green Hydrogen ................................................................................................................... 49
3.8 Energy Transition and Climate Change ................................................................................... 49
3.9 Critical Energy Minerals......................................................................................................... 50
3.10 Development of Critical Geo-energy Resources .................................................................. 51
3.10.1 Coal Resources for Energy Production ........................................................................ 51
3.10.2 Natural Gas .............................................................................................................. 51
3.11 Energy Efficiency and Conservation .................................................................................... 51
3.12 Energy Financing, Pricing and Procurement ........................................................................ 51
3.12.1 Energy Financing and Pricing ..................................................................................... 51
3.12.2 Power Procurement .................................................................................................. 52
3.13 Integrated Energy Planning, Security and Devolution .......................................................... 52
3.13.1 Integrated Energy Planning........................................................................................ 52
3.13.2 Energy Security......................................................................................................... 53
3.13.3 Devolution ............................................................................................................... 53
3.14 Enabling Frameworks ........................................................................................................ 54
3.14.1 Land Acquisition ....................................................................................................... 54

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 3.14.2 Environmental Issues in Energy.................................................................................. 54
3.14.3 Gender Equality, Diversity and Social Inclusion in Energy ............................................. 54
3.14.4 Occupational Safety and Health (OSH) ....................................................................... 55
3.15 Research, Development and Innovation ............................................................................. 55
3.15.1 Research Development & Innovation ......................................................................... 55
3.15.2 Human Resource Development and Retention............................................................ 55
3.15.3 Cyber Security, ICT and Artificial Intelligence .............................................................. 56
CHAPTER FOUR: FRAMEWORK FOR IMPLEMENTING ENERGY POLICY................................................... 58
4 Overview .................................................................................................................................. 58
4.1 Coordination Framework and Administrative Mechanisms ...................................................... 58
4.2 Legal and Regulatory Framework ........................................................................................... 62
4.3 Funding Arrangements .......................................................................................................... 62
CHAPTER FIVE: MONITORING, EVALUATION, LEARNING AND REPORTING ............................................ 63
5 Overview .................................................................................................................................. 63
5.1 Monitoring ........................................................................................................................... 63
5.2 Evaluation ............................................................................................................................ 63
5.3 Risk Management ................................................................................................................. 63
5.4 Reporting ............................................................................................................................. 64
5.5 Learning............................................................................................................................... 64
5.6 Policy Review ....................................................................................................................... 65
ANNEXES.......................................................................................................................................... 66
IMPLEMENTATION PLAN ................................................................................................................... 66

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ACRONYMS
AI Artificial Intelligence
AS Ancillary Services
CCAK Clean Cooking Association of Kenya
CEC County Executive Committees
CEEC Centre for Energy Efficiency and Conservation
CEF Consolidated Energy Fund
CEM Critical Energy Minerals
CEP County Energy Plans
COG Council of Governors
DFI Development Finance Institutions
DHS Demographic and Health Survey
EAPP East African Power Pool
EMCA Environmental Management and Coordination Act
EPRA Energy and Petroleum Regulatory Authority
EPZ Export Processing Zones
ESCO Energy Supply Companies
ESS Energy Storage Systems
EV Electric Vehicles
FIT Feed-in Tariff
GDC Geothermal Development Company
GEDSI Gender Equality, Diversity and Social Inclusion
GET Grid-Enhancing Technologies
GHG Greenhouse Gas
GIS Geographic Information System
GoK Government of Kenya
GSM Government Support Measures
GTL Gas to Liquids
ICT Information and Communication Technology
IEA International Energy Agency
IMC International Medical Corps
INEP Integrated national energy planning
IOT Internet of Things
IP Intellectual Property
IPP Independent Power Producer
IT Information Technology
KAM Kenya Association of Manufacturers
KEBS Kenya Bureau of Standards
KEFRI Kenya Forestry Research Institute
KenGen Kenya Electricity Generating Company

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KETRACO Kenya Electricity Transmission Company
KFS Kenya Forest Service
KICD Kenya Institute of Curriculum Development
KICT Kenya Information and Communication Technology
KIRDI Kenya Industrial Research and Development Institute
KNCTS Kenya National Cooking Transition Strategy
KNeCS Kenya National eCooking Strategy
KNEECS Kenya National Energy Efficiency and Conservation Strategy
KNES Kenya National Electrification Strategy
KNRA Kenya Nuclear Regulatory Authority
KPLC Kenya Power and Lighting Company
KRA Kenya Revenue Authority
LCPDP Least Cost Power Development Plan
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
LRMC Long Run Marginal Cost
MDA Ministries, Departments, and Agencies
MECCF Ministry of Environment Climate Change and Forestry
MoE Ministry of Education
MEPS Minimum Energy Performance Standards
MoEP Ministry of Energy and Petroleum
MoRT Ministry of Roads and Transport
MSD Medium Speed Diesel
MSME Micro, Small, and Medium Enterprises
MVA Mega Volt Amp
MW Mega Watts
NCCAP National Climate Change Action Plan
NDC Nationally Determined Contribution
NEMA National Environment Management Authority
NLC National Land Commission
NLIMS National Land Information Management System
NT National Treasury
NuPEA Nuclear Power and Energy Agency
O&M Operation and Maintenance
OSH Occupational Safety and Health
OSHA Occupational Safety and Health Act
OTS Open Tender System
PPA Power Purchase Agreements
PPP Public-Private Partnership
PPPD Public-Private Partnership Directorate

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PRG Partial Risk Guarantees
PURE Productive Use of Renewable Energy
RDI Research, Development, and Innovation
RES Renewable Energy Sources
REREC Rural Electrification and Renewable Energy Corporation
RES Renewable Energy Sources
RRR Resource Recovery and Reuse
SACCO Saving and Credit Cooperative Organization
SAF Sustainable Aviation Fuel
SDE State Department of Energy
SDG Sustainable Development Goal
SEZ Special Economic Zones
TCC Technology Commercialization Center
TMP Transmission Master Plan
VRE Variable Renewable Energy
WTE Waste to Energy

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Executive Summary
The National Energy Policy 2025–2034 sets the strategic direction for Kenya's energy sector over
the next decade. It aims to provide affordable, reliable, and sustainable energy that drives national
development, economic growth, and climate resilience. As the backbone of Kenya’s socio-
economic transformation, energy plays a pivotal role in achieving the Government’s economic
development goals and the Sustainable Development Goals (SDGs), particularly SDG 7:
Affordable and Clean Energy. The Policy outlines comprehensive strategies, frameworks, and
initiatives that address the country’s energy access, efficiency, and sustainability challenges, while
positioning Kenya as a leader in the clean energy transition.
Key Highlights
Energy Access and Inclusivity
The National Energy Policy 2025–2034 aims to achieve universal electricity access by 2030,
focusing particularly on marginalized communities in rural and remote areas. This goal will be
achieved through grid expansion, off-grid solutions, and the integration of renewable energy
technologies. The Policy also sets the ambitious target of providing universal access to clean
cooking by 2030, reducing reliance on traditional biomass fuels and promoting cleaner, healthier
alternatives.
Renewable Energy Development
The Policy seeks to harness Kenya’s vast renewable energy resources, including geothermal, solar,
wind, and bioenergy. It intends to expand Kenya’s renewable energy capacity and ensure that
renewable sources contribute substantially to the national energy mix. The Policy also positions
Kenya as a leader in geothermal development, capitalizing on its geographical advantage and
renewable potential to enhance energy security, spur green industrialization and contribute to
global climate goals.
Energy Efficiency and Sustainability
Energy efficiency is a key focus of the policy, with an aim to double improvements by 2030. Efforts
will include promoting energy-efficient appliances, supporting electric mobility, and enhancing
energy conservation in various sectors such as industry and residential buildings. The policy also
integrates energy storage systems (ESS) and ancillary services to support grid stability, particularly
with the increased use of variable renewable energy sources like solar and wind.
Energy Financing and Innovation
The policy highlights the importance of securing sustainable financing to meet the energy sector's
infrastructure needs. By fostering public-private partnerships, leveraging green financing
mechanisms, and encouraging innovation, Kenya aims to attract both local and international
investments. The integration of emerging technologies such as smart grids and artificial
intelligence will further enhance energy system efficiency and service delivery.
Climate Change and Just Energy Transition
In alignment with Kenya’s climate commitments under the Paris Agreement, the policy
emphasizes decarbonizing the energy sector by 2050. It calls for a just energy transition, ensuring

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support to vulnerable communities, access to sustainable energy, and resilience to climate change
impacts. The policy promotes decentralized energy solutions like mini grids, micro-grids and to
ensure equitable access to clean energy across the country.
Implementation and Governance
The policy outlines a robust implementation framework, with clear governance structures and
monitoring mechanisms to ensure effective execution and accountability. Key institutions like the
Energy and Petroleum Regulatory Authority (EPRA) and Kenya Electricity Transmission
Company (KETRACO) will oversee policy enforcement, and the government will work closely
with stakeholders to track progress and adjust strategies as needed to meet the policy's objectives.
Regional and International Cooperation
As part of the East African Power Pool (EAPP), Kenya aims to strengthen regional energy trade,
ensuring a reliable and interconnected energy market across borders. The policy also encourages
international collaboration, fostering partnerships for knowledge exchange, technical assistance,
and financing to advance the development of Kenya’s energy sector and align it with global best
practices.
Strategic Objectives
i. Achieve universal electricity access by 2030.
ii. Diversify the energy mix, prioritizing renewable energy sources.
iii. Promote clean cooking technologies and reduce reliance on biomass fuels.
iv. Enhance energy efficiency and conservation in all sectors.
v. Foster innovation through emerging technologies and financing mechanisms.
vi. Support a just and equitable energy transition aligned with global climate goals.

Conclusion
The National Energy Policy 2025–2034 represents a comprehensive approach to addressing
Kenya’s energy needs and challenges while prompting a resilient and sustainable energy future.
The Policy sets the base for Kenya’s energy sector contribution to the country’s economic,
environmental, and social development goals by focusing on resource diversification, innovation,
equity, sustainability and climate resilience. This Policy envisions a future where energy is a
catalyst for economic growth, sustainability, and prosperity for all Kenyans.

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CHAPTER ONE: INTRODUCTION
Overview
This Chapter highlights the basis for the National Energy Policy 2025-2034. It outlines the Policy
structure, background information, and guiding principles. It sets out policy objectives, provides
the scope, identifies key policy issues and justifies the need for Government intervention.

1 Introduction
1.1 Role of Energy in the National Development
Energy is the backbone of Kenya’s socioeconomic development, driving industrialization,
agricultural productivity, and economic resilience. Recognizing this pivotal role, the Government
of Kenya has positioned energy as a critical enabler of its economic development, as entrenched
in the Vision 2030 economic development blueprint. It prioritizes local and renewable resource
development. This agenda prioritizes inclusive growth, job creation, and empowerment of
underprivileged populations, ensuring no one is left behind.
However, despite significant progress in energy access, challenges persist. Approximately 25% of
Kenyans lack access to electricity, with rural areas facing disproportionately low connectivity
rates. Over 69% of households rely on traditional biomass for cooking, contributing to
deforestation, health risks, and environmental degradation. The high cost of energy, coupled with
reliance on imported fossil fuels, poses risks to energy security and economic stability. To address
these challenges, this Policy aims to transition Kenya to a sustainable, resilient, and equitable
energy future, aligning with national priorities, regional and international commitments like the
Sustainable Development Goals (SDGs), African Union Agenda 2063, East Africa Community
2050 and the Paris Agreement.

1.2 Background
Kenya’s energy sector has evolved over the years, guided by existing legal and policy frameworks
designed to address the country's energy needs. Sessional Paper No. 4 of 2004 laid the groundwork
by providing policy direction for electricity generation, distribution, and access, emphasizing rural
electrification and renewable energy development. The Energy Act of 2006 introduced
comprehensive regulatory reforms, which were subsequently enhanced under the Energy Act No.
1 of 2019 through inclusion of emerging technologies, green energy, and energy efficiency
provisions. The National Energy Policy, 2018 provided a strategic blueprint to address energy
access gaps, promote renewable energy solutions, and integrate climate change mitigation
measures. These frameworks have fostered regulatory reforms, incentivized investment, and set
the foundation for energy governance in the country and have collectively driven Kenya's
transition towards a diversified, sustainable, and inclusive energy sector. Notable achievements
include leading Africa and being the 6th geothermal producer globally with an installed capacity
of 988MW, increasing electricity access to 75% of the population by 2024, and renewable energy
sources contributing 82% of total installed capacity. Despite these accomplishments, challenges

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such as climate change, population growth, and technological advancements necessitate a policy
review to ensure sustainable energy development.

Kenya's installed electricity capacity was 3,299.8 MW as of December 2024, composed of 29%
geothermal, 30% hydro, 13.4% wind, 6.5% solar, and 18.7% thermal. The country’s energy
potential is vast, with significant opportunities in geothermal, wind, solar, and bioenergy, as well
as emerging areas such as green hydrogen and energy storage systems. Developments such as clean
cooking solutions, electric vehicles (EVs), and other emerging technologies are transforming the
energy sector, promoting sustainability and efficiency.

1.3 Rationale for Government Action

1.3.1 Justification for Government Action
The Government’s commitment to address energy access gaps, accelerate harnessing of renewable
energy sources, adopt emerging technologies and reduce dependence on imported fossil fuels has
necessitated review of the National Energy Policy, 2018. This Policy seeks to foster a competitive
and inclusive energy market that attracts investment, drives innovation, and supports sustainable
socio-economic development.
1.3.2 Scope of the Policy
This Policy encompasses all aspects of Kenya’s energy sector, including electricity generation,
transmission, and distribution; energy access, renewable energy resources, bioenergy and clean
cooking solutions; energy efficiency and environmental sustainability. It provides for decentralized
energy systems, emerging energy technologies, innovation and climate change solutions.

1.4 Policy Objectives

The goal of this Policy is to provide reliable, competitive, affordable and sustainable energy to
support national development and just energy transition. Specific objectives include to:
i. Promote renewable energy resource development and utilization;
ii. Achieve universal electricity and clean cooking access by 2030;
iii. Promote local and regional energy trade;
iv. Mobilize funding for energy projects;
v. Promote competitive energy procurement and pricing;
vi. Develop, modernize and optimize energy infrastructure;
vii. Promote energy efficiency and conservation;
viii. Enhance institutional capacity, governance and collaborative frameworks;
ix. Promote local content and optimize human capacity across the energy sector;
x. Support green industrialization, environmental and social sustainability.

1.5 Guiding Principles

The Policy is anchored on principles that aligns with national priorities and global sustainability
goals:

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 i. Sustainability and Climate Action: Commitment to renewable energy development,
reduced emissions, and climate resilience;
ii. Energy Equity and Inclusivity: Ensuring universal access to affordable energy while
empowering marginalized communities;
iii. Economic Development and Innovation: Leveraging energy as a driver for
industrialization, job creation, and poverty alleviation;
iv. Good Governance: Upholding transparency, accountability, and efficient resource
management.

1.6 Political Alignment

This Policy aligns with the Government’s development plan, as articulated in Vision 2030. It
focuses on inclusive growth, job creation, and equitable access to energy. The Policy supports
flagship programs aimed at improving the livelihoods of all Kenyans, particularly those in
marginalized and underserved regions.

1.7 Structure of the Policy Document

The Policy document is structured into five chapters: Chapter 1 introduces the policy framework
and context. Chapter 2 presents a situational analysis, detailing the present status, challenges, and
opportunities within the energy sector. Chapter 3 outlines specific policy statements and
interventions targeting multiple thematic areas. Chapter 4 focuses on the implementation
framework, specifying the governance structure, roles, timelines, and resources for policy
implementation. Chapter 5 provides the monitoring, evaluation, and reporting mechanisms for
accountability towards achieving policy goals.

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CHAPTER TWO: SITUATION ANALYSIS

2 Status of the Energy Sector

This Chapter provides an in-depth analysis of the status, challenges, and opportunities in Kenya’s
energy sector. It examines key aspects such as electricity access, generation, transmission, and
distribution, as well as the role of renewable energy, clean cooking, energy efficiency, and
emerging technologies. Additionally, it highlights critical areas that form the foundation for the
policy interventions outlined in the other Chapters.

2.1 Electricity Access

Electricity access in Kenya has significantly improved over the past two decades. Government-led
initiatives and private-sector participation, through innovative business models and adoption of
renewable energy technologies have driven these improvements. In 2018, the Government
formulated the Kenya National Electrification Strategy (KNES) which provided a roadmap to
universal access to electricity.
By 2024, the national electricity access rate was approximately 75% with 90% and 68% access in
urban and rural areas respectively. The lower connectivity rate in rural areas compared to urban
ones is partly due to the high operational and maintenance costs in relation to the revenues
generated in these areas. The Last Mile Connectivity Project (LMCP) undertaken by KPLC and
other electrification programmes by REREC have extended the national grid. Off-grid power
generation through mini-grids and standalone solar systems have increased electrification in rural
areas.

Challenges
i. Kenya's diverse topography and dispersed rural population increase the cost and
complexity of grid expansion;
ii. The high upfront costs for household connections limit access for low-income populations;
iii. High initial investment costs have limited the rapid scaling up of mini-grids and other off-
grid solutions in rural areas;
iv. Ageing infrastructure that affects electricity stability, reliability and sustainability;
v. High grid expansion and densification costs and modernization.

Opportunities
i. Partnership with the international community places Kenya in a good position to access
global climate and energy financing for electrification projects;
ii. Emerging technologies like smart metering, mobile money platforms for pay-as-you-go
systems, and digital monitoring can improve energy efficiency and billing systems,
affordability and service delivery;
iii. Adoption of hybrid renewable energy systems offers cost-effective and reliable alternatives
for underserved rural areas;

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 iv. The rapidly growing off-grid solar market and innovations in battery storage technology
present opportunities to provide clean energy to remote communities.

2.2 Electricity Generation, Transmission and Distribution

2.2.1 Electricity Generation
2.2.1.1 Hydro Power
The national hydropower potential is estimated to be 6,000 MW, half of which is from small
hydros. This is mainly situated in five drainage basins: Lake Victoria, Rift Valley, Athi/Sabaki
River, Tana River and Ewaso Ng‘iro North River. Tana River Basin holds the highest potential
with several large hydro power plants developed. Presently the total installed hydropower capacity
is 838.5MW contributing approximately 30% of the total electricity capacity and average of 27.5%
of total electricity generated in the last 5 years. Kenya also imports 200MW of hydropower from
Ethiopia since 2023.
The hydropower plants provide a reliable electricity source and supplement the system by
providing peaking capacity and ancillary services. Most of the existing power plants were
developed over 50 years ago. The dams have degraded due to siltation occasioned by various
economic activities upstream. Kenya has experienced severe drought over the past years following
adverse climatic changes, thus reducing hydropower generation.

Challenges
i. Wavering environmental and social license and project support by the local communities
leading to complexities in operation and delays in development of hydropower projects;
ii. Inadequate stakeholder coordination in project development leading to project delays and
cost increase;
iii. Adverse climatic changes resulting in seasonal unreliability from hydro power sources;
iv. Multiple levies and taxes imposed on hydro power resources lead to increased electricity
tariffs;
v. High capital investment required to construct large hydro-power plants leading to delayed
project development and high tariff costs.

Opportunities
i. The country’s hydrological landscape has potential sites for development of multi-purpose
reservoirs capable of providing combined benefits of power generation, irrigation, and
domestic water flood control and recreational activities;
ii. The country has potential sites for large and pumped hydro storage power plants suitable
for peaking capacity and flexible generation for system stability;
iii. Potential sites for small hydropower plants ideal for enhancing energy access and local
voltage support while mitigating the environmental impacts of large projects are available
across the country;

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 iv. Increased hydro reservoir capacity would enhance energy storage;
v. Hydropower has the potential to attract funding from climate finance mechanisms.

2.2.1.2 Geothermal Power

Kenya’s geothermal resource potential is estimated at 10,000 MW across 16 prospects. The
installed geothermal capacity as at December 2024 was 940 MW equivalent to approximately 29%
of the total electricity generation capacity. This includes 755 MW developed by KenGen and 185
MW by IPPs. This achievement has positioned Kenya 6 th globally and 1st in Africa in geothermal
development.
Geothermal development has primarily relied on concessional funding from development partners
and direct investment from the Government of Kenya through state-owned agencies, KenGen and
GDC. To accelerate geothermal development, the government established GDC to de-risk
geothermal green fields, develop steam gathering network, contract investors to construct power
plants and develop direct use applications for geothermal. Currently, several geothermal fields are
licensed to IPPs, who are in the early stages of development.
Over the years, Kenya has established technical capacity in geothermal development, to provide
technical and consultancy services across the region and world.
Challenges
i. Insufficient legal and regulatory framework to enforce geothermal resource licensing and
compliance mechanisms to accelerate geothermal development;
ii. Lack of legal and regulatory framework to leverage expertise in government institutions
to expand the ownership of geothermal power plants in the region;
iii. Lack of a framework to prioritise strategic national interests in geothermal resource
development and leverage expertise and capacity in public energy institutions;
iv. Inadequate financing for geothermal resource development, slowing down its
development;
v. Sub-optimal energy mix in the system that results in the underutilization of geothermal
generation at certain times of the day, leading to steam venting.

Opportunities
i. The country’s high geothermal potential can be harnessed to provide baseload supply,
enhance power stability, and energy security;
ii. The availability of green financing that can be tapped to de-risk upstream development;
iii. Growing regional demand for technical expertise in geothermal development can generate
additional revenue stream.

2.2.1.3 Variable Renewable Energy (Wind and Solar)

The vast variable renewable energy resource of solar and wind, in the country provides a strategic
advantage for their integration.

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 The potential for onshore wind resource above 6m/s in the country is estimated at approximately
1.073TW. The potential sites are located in Marsabit, Samburu, Laikipia, Meru, Nyeri, Nyandarua,
and Kajiado Counties. Offshore wind remains untapped despite the strategic situation of the
country along the seashore. The Country’s total installed capacity for wind is 435.5MW, which is
13.4% of total installed capacity.
The country's potential for solar energy is estimated at approximately 15 GW. There exist
approximately 200,000 photovoltaic solar home systems in Kenya, predominantly rated between
10We and 20We.The installed solar power capacity connected to the national grid is 210.3MW,
which is 6.5% of the total installed capacity. There are several small-scale installations providing
mini-grids and standalone systems.
Challenges
i. Variable Renewable Energy resources negatively affect grid stability and control due to
their intermittent nature;
ii. Over-reliance on imported technology exposes the sector to supply chain risks;
iii. Lack of sufficient data for potential developers to fast track development of these
technologies;
iv. Outdated procurement policy framework that does not enhance competition.
Opportunities
i. High VRE resource potential provides an opportunity for development;
ii. The expansion of VRE off-grid systems would enhance access to clean electricity;
iii. Integration of VREs with ESS would support grid stability.

2.2.1.4 Thermal Generation

Kenya’s installed thermal capacity on the main grid and mini-grids is 605MW, which is 18.7% of
total installed capacity. The capacity is located in Nairobi, Coast and Western regions. There is
also significant capacity of back-up and captive generation installed in customer premises.
Challenges
i. High and fluctuating imported fuel prices, making electricity generation expensive and
unpredictable;
ii. Negating environmental goals of minimizing environmental emissions;
iii. Plants have small generator units and thus less contribution to the system inertia.
Opportunities
i. Provide back-up and peaking capacity;
ii. Potential to switch fuel from HFO to LNG;
iii. Short implementation lead time.

2.2.1.5 Nuclear Energy

Nuclear energy has the potential to provide reliable baseload electricity to meet the country’s
growing energy demand. The country established the Nuclear Power Energy Agency (NuPEA) to
promote the development of nuclear energy. Through NuPEA, Kenya is implementing the national

7
nuclear program following the International Atomic Energy Agency (IAEA) Milestone Approach.
In preparation for the implementation, the country has embarked on feasibility studies and capacity
building of nuclear energy expertise.
Challenges
i. High capital cost is required to develop and sustain nuclear power program;
ii. Stakeholder buy-in due to safety and environmental concerns;
iii. Lack of regulatory framework for implementation of nuclear power;
iv. Lack of a dedicated owner and operator to initiate the construction and operation of nuclear
power plant;
v. Insufficient local expertise to develop nuclear power program.
Opportunities
i. Nuclear energy provides stable and reliable baseload power with potential of higher VRE
integration;
ii. The global drive for climate action to cut down on carbon emissions;
iii. Nuclear technology is useful in other sectors of the economy, such as medical, food
production and industrial applications;
iv. The generation will enhance Kenya’s energy mix and the regional power pools’ stability.

2.2.2 Transmission and Distribution

2.2.2.1 Electricity Transmission
Kenya’s electricity transmission network covers 9,484 circuit km at 132 kV and above voltage
levels as of December 2024. This comprises 1,282 km of 500kV, 2,683 km of 400kV lines, 2,152
km of 220 kV lines and 3,427 km of 132 kV lines. The transmission network consists of 111
transmission substations with a transformation capacity of 12,410 MVA.
In line with the Transmission Master Plan (TMP) 2024-2043, KETRACO is implementing
transmission projects totaling about 2,500 km to be completed by 2027 and about 9,000km by
2041. Regionally, the Kenyan transmission network is interconnected with Ethiopia, Uganda and
Tanzania. The existing transmission system is constrained due to voltage and frequency regulation
challenges, adversely impacting on system stability. KPLC is in the process of transferring its
transmission assets to KETRACO.
Challenges
i. Insufficient transmission and transformation capacity, which causes overloading of
transmission lines and curtailment of generation;
ii. Inadequate funding for infrastructure development, operation and maintenance thus
affecting reliability of power supply;
iii. Inadequate technical capacity for infrastructure development, operation and maintenance
which impacts on projects implementation and infrastructure management;
iv. High technical losses due to long transmission lines from generation sources to load
centres;

8
 v. Vandalism of transmission infrastructure leads to disruption of power supply and high cost
of repairs and maintenance;
vi. Land and wayleaves acquisition challenges which causes delays in infrastructure
development and management resulting to high project costs.

Opportunities
i. Availability of alternative funding mechanisms such as PPP and monetization for
transmission infrastructure development, O&M and modernization;
ii. Available market for development of transmission infrastructure due to increased power
demand;
iii. Growing local and regional power trade;
iv. Decentralization of power generation systems;
v. Deployment of grid-enhancing technologies (GETs) to enhance reliability of supply and
support the integration of renewable energy sources.

2.2.2.2 Electricity Distribution

The length of the distribution network has increased over time to meet the growing demand for
electricity in Kenya. The country’s power distribution network total length was 302,256 kilometers
as at June 2024. The distribution network comprises high voltage (66kV), medium voltage (33kV
and 11kV), and low voltage (415/240V) lines. KenGen and other IPPs generates electricity and
then KETRACO steps up the voltage to 132 kV, 220 kV, and 400 kV. KPLC then steps down the
voltage to 66/33 kV for distribution. Some sparsely populated areas not covered by the national
grid are powered by mini and micro grids mostly situated in administrative and trading centers.
The reliability and quality of supply has a direct bearing on economic competitiveness of the
country as these directly impact the cost of production.
Challenges
i. Technical and commercial losses caused by aging and inadequate distribution
infrastructure;
ii. Vandalism of the distribution infrastructure leading to reduced reliability, high O&M costs,
and loss of revenue;
iii. High operations and maintenance costs vis a vis the accrued revenues due to low demand
in rural areas;
iv. Multiplicity of levies and charges on electricity infrastructure by various agencies and
public entities thus increased end user tariffs;
v. Insufficient regulatory framework to govern the inter-connection and transition from mini
and micro grids to the national grid;
vi. Lack of guidelines to facilitates public access and utilisation of customer-owned
distribution assets.
Opportunities

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 i. Increased power demand due to customer growth and emerging drivers such as electric
mobility, e-cooking and data centers;
ii. Availability of technologies such as smart grid technologies, energy storage, to improve
reliability of electricity distribution and loss reduction;
iii. The Government’s commitment to achieve universal access to reliable and stable electricity
supply by 2030;
iv. PPP frameworks that can be leveraged in distribution infrastructure to realize universal
access;
v. Private sector participation in distribution and retail services to improve reliability, enhance
competitiveness and reduce commercial losses;
vi. Diversification of revenue sources using the distribution infrastructure.

2.2.2.3 Electricity Retail

The electricity supply frameworks in Kenya allow multiple generators, distributors and retailers
across the value chain. KPLC is the main off-taker purchasing all power from public and IPPs, for
distribution and retailing. There are small private generators and retailers who supply customers
within their business areas, and also licensed micro-grid operators serving customers off the grid.
The power supply model allows for bulk-purchase of power from the public single off-taker KPLC
and onward retailing to downstream customers. KPLC is also pursuing further testing of this
model targeting to partner with possible retailers in the informal settlements. This initiative has
potential to reduce high electricity system losses. Development of the electrical energy retail
market with diverse players promote efficiency through competition and improved services to
customers. Establishment of multiple retailers would also enable optimal utilization of resources,
particularly the distribution network. This shall ride on the enabling policies such as the open grid
access, captive power, net-metering and the power market. Other key enablers include
development of a wheeling tariff to enable transportation of electricity generated by other
producers to their customers through the existing infrastructure.
Challenges
i. High cost of developing parallel distribution and supply networks;
ii. Long term contractual commitments such as the power take-or-pay power purchase
agreements;
iii. Lack of wheeling tariffs;
iv. Current network layout and people settlement patterns;
v. Delayed unbundling of the public retail function;
vi. Lack of power market limiting consumer choices.
Opportunities
i. Substantial captive power developed;
ii. High potential due to increasing investor interest in power projects;
iii. Enabling legal and regulatory environment;
iv. Abundance of wind and solar and their decreasing technology costs;

10
 v. Expansive power distribution network;
vi. Enhanced electricity access and operational efficiency.

2.2.3 System Operations

System Operations is a critical function in Kenya’s electricity sector. It involves the management
of electricity transmission, coordination of power generation and balancing supply with demand
using economic merit order of dispatch. Its role is to ensure that the national power grid is stable,
reliable and efficient.
KETRACO was designated as the System Operator in December 2021. KPLC is presently in the
process of transferring the System Operation function to KETRACO. KETRACO is developing
an ultra-modern National System Control Centre (NSCC) which is expected to be completed by
2027.
Challenges
i. Insufficient reliability and ancillary services to provide system regulation and address
intermittency from variable renewable energy generation;
ii. Inadequate transmission, system operation and control infrastructure resulting in
unreliable grid services;
iii. Reduced system inertia due to decommissioning of traditional synchronous sources;
iv. Inadequate islanding capability of the system;
v. High turnover of specialized technical human capacity.
Opportunities
i. Availability of modern technology such as smart grid, real-time monitoring systems,
automated control, and predictive maintenance, that enhances reliability and of system
operation efficiency;
ii. Incorporating energy storage solutions to improve system stability and address the
intermittency caused by VRE technologies;
iii. Regional Power Trade: Strengthening interconnections with neighbouring countries and
enhancing regional power trade can improve grid reliability and provide new markets for
electricity exchange.

2.2.4 Power Trade

The Kenyan electricity market is critical to the country’s energy sector, linking electricity
generation with various end-users categories.
Kenya’s electricity market is fully unbundled, with generation undertaken by KenGen and IPPs,
transmission by KETRACO, distribution and retailing by KPLC. The market operates a single off-
taker model, whereby KPLC solely purchases power from the generators under PPA arrangement.
The Energy (Net Metering) Regulations, 2024, allow prosumers to connect to the grid and net off
their excess energy through the electricity distribution system.
Kenya is a member of the Eastern Africa Power Pool (EAPP). The EAPP market design has been
developed and market rules and guidelines are under formulation. Kenya is interconnected with

11
Uganda, Tanzania and Ethiopia facilitating cross-border power exchange and trade among the
countries. Kenya and Tanzania have signed a wheeling agreement to enable regional power trade
between Ethiopia and Tanzania. Kenya is reforming its electricity market from a single-off-taker
model to a competitive wholesale market model. The Energy (Electricity Market, Bulk Supply and
Open Access) Regulations, are under formulation to facilitate the transition.
Kenya is preparing to develop its power market into a competitive wholesale electricity market
that will allow open access to transmission and distribution networks. A competitive wholesale
electricity market will be adopted, starting with the day-ahead market. The electricity market will
be segmented into wholesale market and retail market that will be for both capacity and energy.
Challenges
i. Inadequate technical capacity to undertake market operations thus impacting on the
implementation of the power market;
ii. Lack of wheeling tariff/transmission pricing framework impeding the actualization of a
competitive wholesale market;
iii. The offtaker’s legacy contracts in form of PPAs which may delay the transition into the
power market;
iv. Constrained transmission system limits capacity available for market operations;
v. The existing single buyer model limits competition and innovation;
vi. High technical and commercial losses increase the cost of electricity;
vii. Inadequate enabling regulatory framework to facilitate open power market.

Opportunities
i. Availability of technology and financial services markets to leverage on in the transition
to a competitive electricity market;
ii. The unbundled electricity model in the country enables easier transition from a single off-
taker model to a competitive wholesale electricity market;
iii. Participation in the EAPP to export/import electricity and stabilize the grid;
iv. Availability of market expertise in the region provides an opportunity for peer-to-peer
learning on power market development;
v. Private sector interests in power sector investment.

2.2.5 Captive Power and Net Metering

Captive power and net metering arrangement enables consumers to generate electricity while
reducing national grid dependency. There is over 530 MW captive power generation in Kenya.
Under net metering consumers feed excess electricity from their renewable captive sources into
the grid, offering a cost-effective and sustainable energy solution. This mechanism enhances
energy security and sustainability while diversifying Kenya’s energy mix. The Energy (Net
Metering) Regulations, 2024 were published in June 2024. Presently, captive power generation is
primarily undertaken by industrial and commercial entities to provide reliable energy for their

12
specific needs. Solar photovoltaic systems contribute about 43% of the captive generation installed
capacity.
Challenges
i. Potential loss of revenue for the off taker expected from the commercial and industrial
customers;
ii. Loss of revenues utilized for cross subsidies low end consumers thus increasing their tariffs
iii. Risks of stranded generation assets due to reduced demand from captive plants;
iv. Grid instability and safety risks due during integration and operation of captive plants;
v. Lack of compensation mechanism for grid support services from grid-tied captive power
developers.

Opportunities
i. Promotion of economic development through investment in renewable energy contributing
to climate change mitigation;
ii. Availability of additional generation capacity complementing the grid connected
generation to meet the consumer demand;
iii. Potential to lower the consumer tariffs through reduction of transmission and distribution
losses by supplying power near the load centres.

2.2.6 Energy Storage Systems (ESS)

Energy Storage Systems (ESS) provide energy arbitrage and ancillary services essential for grid
stability and reliability. ESS are therefore important in integration of variable renewable energy
(VRE). Presently there is no utility scale ESS installed in the country. A technical assessment in
2023, by MoEP identified BESS and pumped hydro storage systems as the most feasible for the
Kenyan power system. BESS system technology such as lithium ion was proposed for
implementation in the short term while pumped hydro storage was considered for long term energy
storage. MoEP has designated KenGen to implement a 200MWh BESS pilot project to build
capacity in the energy sector. The 2023 Technical Assessment Study recommended establishing a
regulatory and institutional framework to facilitate the implementation of ESS in Kenya.
Challenges
i. High Capital costs for installing ESS;
ii. Lack of ESS regulatory framework and pricing mechanisms for integration of private
sector ESS to the national grid;
iii. Limited local expertise to develop and maintain ESS.

Opportunities
i. ESS can support the integration of VRE into the grid, for system stability;
ii. ESS would mitigate CO2 emissions by reducing dispatch of thermal plants;
iii. Energy storage during low demand periods and shifting it to peak periods minimizing
venting of geothermal steam;

13
 iv. Reduction of unserved energy to consumers due to reduced load shedding.

2.2.7 Reliability and Ancillary Services

Ancillary Services (AS) support the transmission of electricity from generators to consumers.
They are important for maintaining the quality, reliability, stability and efficiency of power
systems. These services can be provided by grid users, such as conventional power plants,
renewable energy sources (RES), storage units, or flexible loads, to support or ensure a secure and
reliable power system operation. In Kenya, hydro power plants have been the main units providing
AS. There is need therefore to quantify and provide for a remuneration framework for these AS
to take care of increased integration of VREs.
Challenges
i. Lack of analysis to identify the type and size of Ancillary services requirement for the
power system;
ii. Lack of a regulatory framework on development and compensation of Ancillary services;
iii. Inadequate skilled personnel with expertise on ancillary services sizing.

Opportunities
i. Modern technologies such as smart grid technologies and energy storage to improve
provision of AS;
ii. The regional power connection cooperation in integration of AS in EAPP;
iii. Increased integration of variable renewable energy.

2.2.8 Demand Stimulation

Demand stimulation is key in enhancing electricity access, utilization and viability of energy
infrastructure. It supports productive use of energy towards increased economic growth. National
peak demand for electricity grew from 1,812 MW in July 2018 to 2,304 MW in January 2025
while KPLC’s customer base grew from 6.7 million to 9.8 Million over the same period. The
demand growth was 26% compared to 44% of customer growth. Demand stimulation therefore is
critical as electricity consumption needs to be in tandem with customer growth for viability of the
market. Time of Use Tariff, promotion of e-cooking technologies, cold ironing, green hydrogen,
adoption of e-mobility and promotion of Special Economic Zones (SEZ) and data centres are some
of the measures targeted to increase demand for electricity.
By 2023, only 3% of the 7.5 million grid-connected domestic customers in the country owned an
electric cooking appliance and less than 1% use electricity as their primary cooking fuel. The
immediate goal is to increase the uptake of electric cooking from 1% (90,000 customers) currently
to 5% (about 500,000) in the short term and to 10% in the medium term. The E-mobility Policy
envisages that a shift to EVs will resort in additional 415GW electricity demand in the next 5 years,
part of which could be used to offset electricity venting at night with potential to balance load
curve.
Challenges

14
 i. Inadequate collaboration among key stakeholders within and outside the energy sector;
ii. Limited awareness of emerging technologies on e-appliances and e-cooking;
iii. Constrained public finance for electricity infrastructure upgrades and modernization;
iv. Inadequate incentives for off-peak electricity use to encourage power consumption to a
wider consumer category;
v. Grid constraints in different parts of the country due to aged or limited capacity network
leading to suppressed power demand.

Opportunities
i. Increased revenues for the utilities thus lowering the overall cost of power;
ii. Expanding the market beyond the national grid coverage;
iii. Optimal utilisation of energy resources by reducing curtailment of power generation;
iv. Promotion of private sector investment in new business models for household appliances,
electric mobility, water pumping and cottage industries.

2.3 Clean Cooking and Bioenergy

2.3.1 Clean Cooking
The Government targets to achieve universal access to clean cooking by 2030. According to the
Kenya National Cooking Transition Strategy (KNCTS) 2024, 69% of the population use biomass
as the primary source of energy for cooking and heating, 31% rely on LPG, 1% on electricity and
less than 1% on bioethanol. The Household Air Pollution Strategy, 2024 indicates that over 26,000
deaths occur annually, attributed to illnesses related to household air pollution. Over 80,000 social
institutions rely on firewood as the primary cooking fuel.
The Kenya National Energy Efficiency and Conservation Strategy, 2020 (KNEECS), supports the
development of Minimum Energy Performance Standards (MEPS) for clean cooking appliances
and establishment of test labs. There are emerging clean cooking solutions that include solar
cooking, green hydrogen, geothermal direct use, and bio-methane. The vast solar radiation coupled
with innovative new technologies such as phase change materials for thermal storage and Direct
Current eCooking appliances can be used for solar thermal and solar electric cooking in the
country. Bio-methane technology is considered as an alternative to conventional LPG, since it
reduces carbon emissions and reliance on fossil fuels.
Challenges
i. Limited access to clean cooking solutions with a low national access rate due high cost;
ii. There is inadequate funding for clean cooking solutions;
iii. Limited data availability has constrained the planning and resource mobilization for
projects;
iv. Clean cooking technologies are still emerging and therefore subject to operational
challenges;
v. The country relies on imports for all LPG for domestic and commercial demand.

15
Opportunities
i. Availability of climate finance funding option for clean cooking solutions;
ii. Inclusion and mainstreaming of clean cooking in national and county energy planning
processes;
iii. Growing investment interests in clean cooking solutions both locally and globally;
iv. Collaborative stakeholder participation that include private sector, development partners
Government agencies and public institutions that ease deployment of clean cooking
solutions;
v. Introduction of viable cooking solutions and business models based on local fuels and
technologies;
vi. The potential to generate biomethane from various feed stocks exists;
vii. Local production of biomethane is an alternative that could save the country foreign
exchange.

2.3.2 Liquefied Petroleum Gas

LPG is used as a primary cooking solution by 31% households, with 9% usage by rural households
and 63% in urban areas according to 2022 KNBS Demographic and Health Survey (DHS) 2022.
The 2024 Economic Survey 2024 estimated the total consumption of LPG at 365 thousand tonnes
in 2023. The per capita consumption of LPG stood at 7.5kg in 2021 and is forecasted to rise to 15
kg per year by 2030. The midstream segment of the LPG value chain has a combined storage
capacity of 34kMT.
Challenges
i. Insufficient common user import facilities for handling bulk LPG;
ii. Price volatility occasioning supply uncertainties due to dynamic geopolitical factors;
iii. Inadequate legal and regulatory framework;
iv. Inadequate distribution infrastructure for the LPG limiting access.

Opportunities
i. Available investment opportunities in bulk LPG infrastructure development and market
availability for public and social institutions;
ii. A subsidy scheme for LPG cylinders for low-income households that complements private
sector involvement;
iii. Availability of the LPG Growth Strategy to enhance LPG penetration;
iv. The KNCTS has set a target to enable 50% of households use LPG by 2030;
v. Proposed initiatives to import LNG for household and industrial use;
vi. The Presidential Directive to transition all public institutions from firewood to LPG for
cooking;
vii. On-going exploration of natural gas.

16
2.3.3 Electric Cooking
Presently, less than 1% of Kenyans use electricity as their primary fuel for cooking. According to
the Kenya National eCooking Strategy 2024 (KNeCS) over 6% of Kenyans use electricity as their
primary, secondary or tertiary solution for cooking and related processes. Approximately 25% own
an electric appliance that can be used for cooking. The target is to build a sustainable eCooking
market which can enable a net-zero transformation by electrifying the majority of cooking energy
demand by 2050.

Challenges
i. The supply chain for energy-efficient eCooking appliances is inadequate;
ii. Reliability challenges and limited access to electricity in rural areas;
iii. The electricity tariff structure does not provide incentive for eCooking;
iv. Limited uptake of eCooking solutions occasioned by cultural norms and perceptions
associated with food cooked using electricity
v. Limited awareness and knowledge gaps on the effective use of eCooking solutions leading
to low usage;
vi. Weak guarantee on the durability, safety, energy-efficiency, performance,
repair/maintenance and end of life disposal of eCooking appliances;
vii. Lack of regulatory framework for eCooking;
viii. Unfavorable fiscal policy for eCooking.

Opportunities
i. Majority of Kenyans have electricity connections that are suitable for eCooking and this
an avenue for stimulating demand;
ii. The availability of a green grid provides viable option to fulfil national obligations on
emission reductions;
iii. There is room to develop an eCooking tariff to improve demand;
iv. ECooking can attract funding through carbon financing.

2.4 Bioenergy Situational Analysis

Bioenergy resources in Kenya consist of solids (firewood, charcoal, briquettes, pellets), liquids
(bioethanol and biodiesel) and gaseous (biogas). The harnessing of the resources is important for
sustainable development including resource recovery and reuse (RRR). Bioenergy applications are
in cooking and heating, road transport, aviation and power generation sectors and emerging uses
(BioLPG).
2.4.1 Cooking and Heating
Bioenergy resources for cooking include (firewood, charcoal, briquettes, pellets, biogas,
bioethanol and biodiesel). According to the 2022 KNBS Demographic and Health Survey, 69% of
the population use firewood and charcoal as cooking fuels. The use of carbonized and non-
carbonised briquettes and pellets for cooking offers sustainable solid biomass options. The KNCTS

17
targets to reduce the percentage of households relying on solid biomass fuels from 69% to 7%
(sustainable biomass) by 2028. Gaseous biomass cooking solutions include biogas, syngas and
hydrogen. There are an estimated 86,355 biogas digesters installed and 2019 studies indicate a
potential to establish 2.3 million digesters in the country. The KNCTS targets to increase the
number of households using biogas for cooking to 3% by 2028.
Bioethanol for cooking is an emerging industry with 1% of households mostly in urban centres
using it. Bioethanol cooking fuel imports between 2018 and 2022 were estimated at 33 million
litres valued at 3 billion Kenya Shillings. The KNCTS targets to facilitate 30% of households to
use bioethanol for cooking by 2028.
Challenges
i. The harvesting and use of biomass products leads to environmental degradation and indoor
air pollution;
ii. There is limited awareness on the use of briquettes and pellets for cooking;
iii. The high initial investment costs of installing biogas digesters constrains the uptake;
iv. Limited technical expertise for installation and maintenance constrains growth;
v. The limited availability of data on biogas technology and bioethanol constrains planning
efforts;
vi. The competition between production for food and fuel impedes bioethanol production;
vii. Limited regulatory framework, viable business models and low awareness constraining
utilization of bioenergy resources.
Opportunities
i. There is potential for generating biomass, biogas and biofuels from agricultural residues,
municipal solid waste and forest waste for industrial and domestic use;
ii. Potential for cultivation of energy crops for production biomass and biofuels;
iii. Locally produced biogas is an alternative to imported LPG and it would save the country
foreign exchanges used for importation;
iv. The need to increase awareness, scale up the production, establish distribution
infrastructure and enhance uptake of clean cooking solutions;
v. Available market for the biofuels which offers employment opportunities;
vi. Avoided cost of reforestation occasioned by use of trees for energy purposes.

2.4.2 Bioenergy and Road Transport

Bioenergy resources for road transport include bioethanol, biodiesel and biogas. The total installed
ethanol processing capacity is 83 million litres annually, compared to annual production of 26.5
million litres. The country has an E -10 blending mandate which was developed in 2010, and has
not been fully operationalized due to low production of bioethanol locally. There infrastructure for
E-10 blending in Kisumu and Eldoret. There is potential to implement the E-10 blending to boost
local bioethanol production especially targeting sugar and cassava feed stocks. The biodiesel
sector in Kenya is at early stages of development in comparison with the more established
bioethanol. Biodiesel initiatives focuses on non-edible oils and used edible oils. The Government

18
is presently developing the regulatory framework for biodiesel and bioethanol. Biogas for road
transport is not established in the country.
Challenges
i. Kenya relies heavily on imported fossil fuels for the transport and industrial use
contributing to emission of greenhouse gases;
ii. Local production of biofuels for the transport sector is constrained by competition between
production for food and fuel;
iii. Inadequate legal and policy frameworks with limited fiscal incentives;
iv. Insufficient information due to limited research and development;
v. Public awareness and engagement is low;
vi. The distribution infrastructure is limited.
Opportunities
i. High saving in foreign exchange expenditure on imported fuels;
ii. Energy producing crops that do not compete with food production can be grown in the
country;
iii. Potential to increase smallholder farmers’ incomes through an expanded biofuels industry.

2.4.3 Sustainable Aviation and Marine Fuels

The total aviation fuel requirement for international operations is 88%, 7 % for domestic operations
and 5 % for regional operations. Kenya’s goal is to halve CO2 emissions from the aviation sector
by 2050 in line with the international aviation industry’s climate change targets. Kenya’s aviation
sector, aims to halve CO₂ emissions by 2050, aligning with global climate targets. Sustainable
Aviation Fuel (SAF), derived from bioenergy, and green hydrogen offer transformative solutions
to decarbonize the industry.
Marine shipping plays a pivotal role in global trade, handling approximately 80-90% of the total
volume while contributing around 3% to annual global greenhouse gas (GHG) emissions. In
Kenya, the maritime sector is equally critical, with 3,240 vessels docking at Kenya’s ports in 2023,
facilitating the importation of 50 different types of commodities from 76 countries. Biofuels and
green hydrogen can significantly reduce emissions, with hydrogen also serving as a precursor for
clean marine fuels like ammonia.
Challenges
i. There is low production of biofuel feed-stocks for SAF and marine fuels due to lack of
awareness and markets;
ii. Lack of refining infrastructure, technical expertise and research in SAFs and marine fuels
makes thus difficult to implementation of associated program;
iii. The lack for SAFs makes bulk production difficult, and advanced conversion technologies
for converting biomass to jet fuel are locally unavailable;
iv. Inadequate legal and institutional framework to support sustainable development of SAFs
and marine fuels;
v. Investment costs for achieving commercial viability are high.

19
Opportunities
i. There is a global requirement for decarbonization in the aviation and marine industry,
including certification and standards for fuels;
ii. There is vast RE potential for the production of SAFs and marine fuels in the country.

2.4.4 Cogeneration, Gasification and Waste to Energy

Studies indicate there is high potential of biomass waste conversion to electricity through co-
generation and gasification technologies. The Sugar Directorate indicates that about 2.4 million
tons of bagasse generated by the sugar factories is unutilized (KEFRI, 2020). The estimated
cogeneration potential from sugarcane bagasse in Kenya stands at 300 MW. The current generation
is 193 MW, consumed by the sugar factories and is not supplied into the national grid. Mumias
Sugar Company previously generated 38MW of which 26 MW was consumed within the factories
and the balanced supplied to the national grid.
In Kenya, most tea factories source almost 99 % of their energy from firewood and other sources
of biomass and 1 % from oil fuel. The tea industry consumes about 1 million tons of firewood
annually (KEFRI 2020). The Government has identified potential for power generation through
gasification using forestry and agro-industry residues. The country has potential to generate about
130 MW from municipal solid waste, sisal and coffee. The present generation from industrial bio-
digesters is less than 3 MW. About 90% of municipal solid waste generated is reusable, but only
5% is recycled or composted. The collection rate is between 50% to 60%, representing 1500-1800
tons/day. The average per capita waste generation in the main Kenyan municipalities is estimated
at 8 million tons annually. About 60 - 70% of waste is organic, 20% plastic, 10% paper, 1% medical
and 2% metal (Ministry of Environment and Forestry, 2019). There is proposed MSW energy
plants of a 45MW plant at Dandora dumpsite, and a 12 MW grid connected plant in Kibera.
Challenges
i. There is underutilization of available capacity for cogeneration and gasification;
ii. High investment and operational costs, and limited availability of feedstock slow the
expansion of cogeneration and gasification;
iii. Inadequate regulatory framework on waste-to-energy conversion technologies;
iv. Inadequate research on waste-to-energy power generation;
v. Pollution from the combustion of waste is a health and environmental hazard.

Opportunities
i. Heat and power from cogeneration of waste can be put different industry usage;
ii. Standardized PPAs would support cogeneration due to reduced transactional costs;
iii. Heat recovery from incinerators in hospitals and industries, could be used to displace fuel
oil in water boilers;
iv. Agricultural waste can complement municipal waste in biogas plants, for higher energy
production.

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 2.5 Diverse and Productive Uses of Energy
Most energy sources provide alternative forms of energy that can be applied/used directly in other
economic sectors. These sources include geothermal, solar, wind or small hydros. They provide
thermal energy that is directly applied for heating, cooling, refrigeration and automotive
applications. There is significant potential for direct-use applications for geothermal which can
spur green industrialization but it is yet to be fully harnessed. Solar powered appliances are used
in agricultural applications and cold chains. Wind power can be used for irrigation in off-grid areas.
Small hydros can be used to power grinding mills among other applications.
In 2021, MoEP established the National Roadmap for Scaling up Productive Uses of Renewable
Energy (PURE) in Kenya. The Inter-Governmental Committee on PURE was established in 2024
to facilitate the identification of barriers and opportunities for scaling PURE in Kenya. PURE will
enable Kenya to expand energy access and for utilities to generate more revenue.
Challenges
i. Lack of a pricing mechanism and inadequate stakeholder engagement on PURE;
ii. Limited technical support on PURE technologies thus resource underutilization;
iii. Minimal expertise and technical know-how in non- electric energy applications;
iv. Low consumer awareness of PURE technologies reducing uptake;
v. High upfront costs coupled with limited access to financing for consumers;
vi. Inadequate innovation, research and development in PURE sub-sector;
vii. Inadequate business models that support adoption of diverse and productive uses of energy;
viii. Inadequate fiscal incentives to attract investors.

Opportunities
i. Availability of renewable energy resources;
ii. Availability of geothermal resources for direct use applications which has the potential to spur
green industrialization;
iii. Availability of PURE for agricultural mechanization, electrification of public facilities, e-
mobility transport, support for industrialization and manufacturing;
iv. Growing availability and demand for diverse and productive uses in the market.

2.5.1 Emerging Technologies

Emerging technologies in the energy sector, such as green hydrogen, oceanic energy, Internet of
Things (IOT), carbon capture and advanced ESS, can enhance grid stability, and diversify the
energy mix. Investment by Government and private sector in research and development, pilot
projects, and capacity-building programs, can accelerate the adoption of these innovative energy
solutions.
Challenges
i. High costs associated with developing and maintaining emerging technologies;
ii. Inadequate technical expertise and technology Infrastructure;
iii. Lack of research, development and awareness on emerging technologies;

21
 iv. Cultural and societal factors slowing the adoption of emerging technologies;
v. Insufficient data due to limited research and development on emerging technologies.

Opportunities
i. The Government support for policies aligning with Kenya’s green energy ambitions;
ii. Strategic partnership between the Government, multilateral lenders and investors in
promoting sustainable economic growth and social development;
iii. High resource potential to support the emerging technologies.

2.6 Green Hydrogen

Kenya aims to produce green hydrogen by leveraging on its vast renewable energy resources. This
will contribute to global decarbonization goals and enhance the country’s energy security. The
Government developed the Green Hydrogen Strategy and Roadmap, and Guidelines on Green
Hydrogen and its Derivatives, to guide the development a green hydrogen economy. These
frameworks set the criteria, regulatory standards, and monitoring mechanisms for Green Hydrogen
projects. The applications will be in agriculture, industrial use, transport, power generation, and
export markets.

Challenges
i. High capital costs;
ii. Limited infrastructure for Green Hydrogen development;
iii. Insufficient regulatory frameworks;
iv. Inadequate local technical capacity and technology for production.

Opportunities
i. Kenya's strategic geographical location and vast renewable energy resources can attract
investments in green hydrogen;
ii. Domestic green hydrogen production can decrease reliance on imported fossil fuels,
enhancing energy security;
iii. Green hydrogen useful in decarbonization of industries and clean transportation systems;
iv. Green hydrogen production will support production of green ammonia, e-methanol,
synthetic fuels and in hydrogen-based steel and cement manufacturing industries;
v. Adoption of the green hydrogen create local capacity, foster innovation, and create jobs
across;
vi. The growing global demand for cleaner fuels and decarbonized solutions creates a market
for green hydrogen and its derivatives;
vii. Development partners and private investors interest in establishment of green hydrogen
projects.

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2.7 Energy Transition and Climate Change
Kenya has committed to champion and adopt measures to mitigate climate change. The energy
sector ranks among the largest contributor to Green House Gas (GHG).
The country’s target on Nationally Determined Contribution (NDC) to abate GHG emissions by
32% by 2030. The National Climate Change Action Plan (NCCAP) has identified priority areas
that rely on dirty fuels. The NCCAP identifies policy and fiscal incentives to promote usage of
climate-friendly technologies. MoEP’s Kenya Energy Transition and Investment Plan provides the
process for the energy sector to contribute for Net Zero emissions by 2050. The Government is
committed to achieve a Just Energy Transition by reducing dependency on fossil fuel-based energy
systems to renewable and sustainable energy resources fairly and equitably.
Challenges
i. High capital and maintenance costs for low carbon emitting technologies such as electric
heat pumps, sustainable aviation fuels, green hydrogen and EVs;
ii. Limited infrastructure to support adoption of low carbon technologies such as EV charging
stations, mass clean cooking stoves;
iii. High energy costs of modern and low carbon cooking solutions (LPG, sustainable biomass,
electricity);
iv. High costs for grid support to integrate more capacities of VREs Technologies.

Opportunities
i. Availability of investment capital and donor support for low-carbon energy projects;
ii. There exists vast renewable energy potential to support the energy transition;
iii. Green growth opportunities that include carbon markets, green hydrogen, green
manufacturing and localization of low carbon technologies;
iv. Creation of energy security as domestic demand grows, more local resources can be
developed.

2.8 Carbon Market and Carbon Finance

Kenya has made significant steps toward developing sustainable energy and mitigating climate
change. Carbon finance is a market-based mechanism that plays a vital role in achieving the goals
of the energy sector in Kenya through the financing of projects that reduce emissions
of greenhouse gases. Kenya enacted the Climate Change (Carbon Markets) Regulations 2024.
This is bound to increase international investments into Kenya's green economy, while at the same
time contributing to the country's national climate action plans. It provides incentives
to businesses for the adoption of low-carbon technologies and encourages the adoption
of sustainable practices.

Challenges
i. Lack of adequate capacity on project monitoring and verification;

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 ii. Global carbon prices are subject to fluctuations and this volatility affects the profitability
of carbon credit projects;
iii. The carbon markets regulations in Kenya are underdeveloped compared to other
international markets;
iv. Small projects and organizations face challenges in meeting and aligning with international
standards.

Opportunities
i. Vast renewable energy resources in Kenya, offering high potential for generation of carbon
credits;
ii. Engagement in carbon markets can help Kenya emerge as a regional leader in climate
action and sustainable energy;
iii. Access to funds such as the GCF and GEF, gives Kenya the opportunity to enhance the
country’s carbon market.

2.9 Critical Energy Minerals

Critical minerals are vital to modern industries, including battery storage, wind and solar energy,
semiconductors, and defence applications. Recent geological surveys and exploration activities
indicate that Kenya possesses a diverse range of critical minerals, with significant deposits
identified in various regions. They include copper, manganese, Rare Earth Elements (REE),
graphite, nickel and cobalt. Through the Vision 2030 and Green Industrialization Policies, the
Kenyan government focuses on harnessing critical minerals to support Kenya’s transition to a low-
carbon, high-tech economy.

Challenges
i. Limited exploration and data hinder investor confidence in investing in the exploitation of
critical minerals;
ii. The lack of adequate infrastructure, including inefficient transportation, insufficient energy
supply, and limited processing facilities, hampers the development of full-scale mining
operations;
iii. Inadequate regulatory framework to spur investor confidence in exploiting critical
minerals;
iv. The integration of critical minerals with the renewable energy sector remains limited due
to the absence of established renewable energy industries.

Opportunities
i. The untapped and unexplored critical mineral potential presents an opportunity to exploit
these minerals;

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 ii. The increasing demand for lithium, cobalt, nickel, copper, and rare earth elements (REEs)
due to the global shift toward renewable energy, electric vehicles (EVs), and battery storage
presents a huge export opportunity for Kenya;
iii. The potential for developing local value-addition processes;
iv. The high renewable energy potential and targeted capacity growth provide an opportunity
for synergies between critical mineral mining, processing, and renewable energy industries
to create a self-sustaining value chain.

2.10 Development of Other Geo-energy Resources

2.10.1 Coal Resources for Energy Production
Kenya has delineated 31 blocks for coal exploration. Prefeasibility studies undertaken in one of
the blocks in Mui Basin of Kitui County indicate coal reserves estimated at 400 million tons. The
Government extended coal exploration to cover the Karoo system in Kwale and Kilifi Counties.

The country is a net importer of coal which is used in high-heat industrial processes in steel
making, cement manufacturing, ceramic industries and for captive power generation. In 2022, the
annual imports for coal was 1,000,000 tons valued at KES. 26 billion (KRA). The imported coal
and coke feedstock in 2022 and 2023 were 4,888.06 TJ and 6,077.59 TJ respectively (KNBS 2023
& 2024). According to International Energy Agency (IEA), Kenya imported coal valued at about
US $120 million in 2023. The Energy and Petroleum Statistics Report (EPRA, 2024) indicate that
coal and coke contributed 3.7% of Kenya’s energy supply for the year 2023.

Challenges
i. Reduced funding and investment financing in coal development;
ii. Adverse effects in coal utilization which include land degradation, water pollutions and
mass displacement of population;
iii. Lack of socialize license to operate in coal resources development;
iv. Opposition from anti-coal lobby groups leading to negative publicity of coal projects.

Opportunities
i. Growing demand for use of coal in high heat industrial processes that currently with no
viable alternatives;
ii. Local coal production will reduce imports and improve the country’s balance of trade;
iii. Utilization of clean coal technologies for power generation to enhance the country’s energy
security, provide contingency base load and mitigating the effects of intermittent sources;
iv. Diverse multi- resource industry for coal resource associated minerals and bye-products
production of coke for manufacture of iron and steel products, as a source of process heat
for industrial and commercial boilers, for conversion to liquid fuels, as source of industrial
filler, in construction and gasification;

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 v. Improved livelihoods of communities such as job creation, local industries, improved
infrastructure and other social amenities.

2.11 Natural Gas

Natural Gas plays a critical role in the clean energy transition. It has various uses including thermal
applications in industries, transportation, institutional, and households use; electric power
generation and gas to liquids (GTL) conversions. It is used as raw material for other products
including fertilizer, methanol and ethanol.
The Kenya Exploration Potential Play based Resource Assessment Report indicate that the country
has a huge potential for natural gas, especially in the Lamu Basin. As the world transitions to clean
energy, there is need to explore and exploit natural gas for utilization in the domestic market and
for exportation.

Challenges
i. Lack of handling and distribution infrastructure for natural gas;
ii. Price volatility occasioned by dynamic geopolitical factors;
iii. Slowed local exploration of the resources;
iv. Intensive capital requirement in the exploration and development of gas infrastructure.

Opportunities
i. There are local natural gas prospects in the country that remain unexploited;
ii. Feasibility studies have been carried out to determine the quantity requirements of natural
gas to develop power plant and other industrial use;
iii. Availability of natural gas in the region reducing import costs.

2.11.1 Crude Oil and Liquid Petroleum Products

Domestic crude oil deposits have been discovered in Turkana and the initial plan is to transport the
oil via a pipeline to Lamu for export. The commercial viability of exploitation and export or
domestic refining of the crude is still being established. Petroleum products account for 22% of
the national primary energy consumption with approximately 8% sourced from fossil fuels such
as heavy fuel oil (HFO) and gasoil. Demand for petroleum products has grown over time,
increasing by approximately 10% annually. Kenya relies entirely on imports for its petroleum
products, with refined products sourced mainly from Murban crude and Arabian Medium. Kenya’s
electricity sector previously relied heavily on imported crude oil and petroleum products fueling
nearly 40% of the installed power generating capacity. With the commissioning of geothermal,
wind and solar power plants, this dependency has decreased in recent years and fossil plants
provide less than 10% of the annual electricity generated. Heavy fuel oil (HFO) has less preference
for power generation expansion due to its adverse environmental impacts. As part of expansion
planning, efforts are directed towards converting existing thermal power plants to liquefied natural
gas (LNG).

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Challenges
i. Long lead time and uncertainties in resource development;
ii. Fluctuations in world crude oil prices leading to high cost energy;
iii. Reduced preference due to adverse environmental impacts including air pollution and
climate change.

Opportunities
i. Potential to save the country’s foreign currency used for oil importation and improve the
country’s balance of trade;
ii. Local coal production would boost national energy security;
iii. Thermal plants easy deployment and ability to provide back-up power, peaking capacity
and electricity production for mini-grids and home systems.

2.12 Energy Efficiency and Conservation

Energy efficiency and conservation is key towards; sustainable development, cost reduction,
mitigating environmental impacts, and in enhancing energy security. It supports economic growth,
job creation, improved health, and reduced inequalities while addressing global challenges like
greenhouse gas emissions. The country targets to double improvements in energy efficiency by
2030 in order to achieve Sustainable Development Goal (SDG) 7, which requires access to
affordable, reliable, sustainable and modern energy for all.

Energy efficiency in Kenya crosscuts various sectors, including buildings, households, industries,
agriculture, transport, and utilities. Existing policy interventions in energy efficiency include
Energy Management Regulations and the Standards and Labeling Program, implemented by
EPRA.

The Government through the Centre for Energy Efficiency and Conservation (CEEC) has
facilitated energy audits, capacity building and public awareness campaigns. Other initiatives by
stakeholders include promoting electric mobility in transport, efficient design in buildings
enhancing agricultural cold chains, and clean cooking. Additionally, Kenya is part of the regional
efforts in the development of the East Africa Community Regional MEPS for lighting appliances.

Challenges
i. Limited access to financing mechanisms for implementation of energy efficiency
measures;
ii. Inefficient and inadequate data management systems on energy efficiency for target setting
and monitoring;
iii. Inadequate human capacity to carry out energy efficiency measures, develop standards and
enforce compliance;

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 iv. Lack of awareness on energy efficiency and conservation among consumers and other key
stakeholders resulting to low adoption of energy efficient appliances;
v. Limited supply-side energy efficiency programs, which limits the potential for
comprehensive improvements in energy use and sustainability in the country.

Opportunities
i. There exists a growing market for energy efficient appliances driven by regulatory
compliance and consumer awareness;
ii. Existing local and regional frameworks for energy efficiency and conservation;
iii. Existence of energy efficiency solutions such as energy management systems;
iv. Availability of financing options and business models providing a solution to the high
capital costs of energy efficiency projects.

2.13 Energy Financing, Pricing and Procurement

2.13.1 Energy Financing
The financing and pricing mechanism of energy projects in the country is crucial in determining
end user tariffs. The sector requires sustainable financing to modernize the country’s energy
infrastructure, adopt new technologies and enhance energy access. The Government is committed
to supporting investment in all segments of the energy sector ranging from generation,
transmission, distribution and retailing. Presently, the energy sector is financed through
Government budgetary allocations, development partners and private sector initiatives. The
investment requirements supersede the available financial resources in the sector. The
Government is in the process of establishing the Consolidated Energy Fund as provided under the
Energy Act. The National Green Fiscal Incentives Policy Frameworks promotes green energy
investments.

The funding gap is expected to continue as growth in energy demand necessitates addition and
modernization of energy infrastructure. The Government will continue to partner with financial
and other development partners for fiscal and technical assistance. The Public-Private Partnerships
(PPP) arrangement will attract investment and foster innovation and technological advancements.
In the energy sector, financing is primarily foreign currency and most tariffs are priced in USD.
The Government applies appropriate risk management mechanism in infrastructure projects
through guarantees and other Government Support Measures (GSMs). These strategies are
intended to de-risk projects and improve bankability of the projects. The project developers
assume certain risks and are required to mitigate them at reasonable costs ensure the project’s
viability.

Kenya offers several fiscal incentives to encourage business investment in the country. Some of
these incentives include Tax Holidays, Export Processing Zones (EPZs), Duty-Free Imports,
Investment Allowances, Infrastructure Support, Export Promotion Schemes, Customs and Trade
Facilitation.

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2.13.2 Energy Pricing
The current energy pricing and tax incentives for renewable projects are designed to encourage
sustainable practices and attract investments. Policies such as feed-in tariffs aim to promote
investment in renewable projects. Electricity pricing follows the principles of Long Run Marginal
Cost (LRMC) of supply, with both bulk and retail tariffs regulated. Electricity tariffs are structured
to generate adequate revenue for utilities while ensuring competitive end user tariffs.

Bulk tariffs are negotiated between producers and the off taker, then approved by EPRA. Retail
tariffs, regulated by the Authority, are reviewed at least every three years. Fuel costs and forex
adjustments are pass-through costs in electricity pricing. These adjustments account for variations
in power costs due to fluctuations in international crude oil prices and the volatility for the Kenya
shilling against foreign currencies, primarily the US dollar.

Challenges
a) Energy Financing and Investment
i. Inadequate Government funding for energy projects has delayed projects implementation,
compromising reliable energy, energy security and sustainability goals;
ii. The Government entities in the generation, transmission and distribution segment are
unable to generate adequate revenue to meet their financial obligations;
iii. Over-reliance on external financing from developmental partners affects sustainability of
energy projects;
iv. The high capital requirements for energy projects and the limited financing for certain
technologies results to underutilization of certain energy resources;
v. The complexity, volatility and regulatory inadequacy of emerging financing alternatives
poses financial risks to investors in assessing project viability;
vi. Inadequate pipeline of bankable energy projects to draw alternative financing sources
especially during upstream development;
vii. Higher transactional costs due to complex and lengthy financing processes resulting to
project delays and high end user tariff.

b) Electricity Pricing and Social Economic Issues

i. The pricing mechanism is not dynamic to ensure short term pricing to meet changing
requirements for consumers and market participants;
ii. Lack of optional competition in the electricity value chain and lack of a power market;
iii. There is risk of regulatory capture in tariff setting and political interventions;
iv. The subsidization lifeline tariffs, through compensation by other consumer categories;
v. Lack of flexible pricing mechanisms, such as spot electricity markets, to improve market
responsiveness.

c) Foreign Exchange, Taxation, Levies and Fiscal Regime

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 i. Multiple and uncoordinated levies and charges applied to energy operations leading to high
cost of energy services;
ii. The unpredictable fiscal regime and long-term, inflexible energy infrastructure contracts;
iii. The global economic shocks due to geopolitics and other factors disrupts supply chains and
reduce demand for energy;
iv. The inadequate fiscal incentives, tax breaks, and unpredictable policies create a challenging
environment for attracting long-term investments;
v. Investors and developers unable to compute project costs and returns accurately, due to
fluctuating interest rates and unpredictable levies discouraging long-term investment and
development of energy infrastructure;
vi. Overreliance on foreign currency financing, exposing the sector to exchange rate volatility.

d) Financial Risk Management

i. Insufficient use of de-risking mechanisms to protect the sector from macroeconomic
shocks;
ii. High reliance on GSMs over structuring viable, bankable projects;
iii. Inadequate capacity in the public sector to manage and implement PPP projects, asset
monetization and structure complex energy projects.

Opportunities

a) Energy Financing and Investments

i. Availability of alternative financing sources such as pension funds, green funds, bonds,
SACCOs, climate funds, and strategic partnerships which have not been adequately
utilized;
ii. There is investment potential in renewable energy, due to global emphasis on green growth
and sustainable energy projects;
iii. There is a stable legal and policy framework enabling adoption of various financing
initiatives and private sector investments;
iv. The country is a member of several regional economic bodies which fosters trade and
investment;
v. The availability of energy infrastructure and associated assets can monetized as a source of
capital;
vi. Successful implementation of PPP projects in other countries with similar social, economic
and political background and such projects can be replicated locally;
vii. The Carbon Credit Market for energy project provides a platform to offset tax liabilities
while contributing to environmental sustainability;
viii. The PPP and asset monetization provides a mechanism of sharing risks in energy project
development and implementation.

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2.13.3 Power Procurement
Power procurement in Kenya involves least cost planning, acquisition and management of
electricity supply to meet the country’s energy demand. The MoEP has the primary obligation of
power planning. Procurement is primarily guided by the LCPDP. LCPDP considers affordability,
sustainable energy generation and evacuation among other elements. Sources of electricity in the
country are from a diverse mix of renewable energy including geothermal, hydro, wind, solar,
biomass, complemented by thermal plants. KenGen and IPPs generate power which is purchased
by KPLC through PPAs for distribution and retailing. Regionally, power procurement is through
bilateral trading arrangements. Plans to develop a competitive regional market are underway with
a day ahead market set to be launched in 2025.

The Public Procurement and Asset Disposal Act, 2015 and the Public Private Partnerships Act,
2021 apply in procurement of goods and services by public bodies. The FiT Policy, 2012 was
adopted to promote generation of electricity from renewable energy sources providing pre-
determined tariff for different technologies. Technological advancement over the years has
resulted to competitive market tariff rates for renewable technologies. Government has directed
that new capacity of variable renewable energy to be procured through the Renewable Energy
Auctions process except for small capacity projects of less than 20MW from small hydro, biomass,
and biogas sources that are to be retained under the FIT Policy. A coordinated approach in the
procurement process supports the growth of the renewable energy sector and balances the investor
and consumer interests.

Challenges
i. The off-taker’s PPAs are denominated in foreign currencies despite off-taker’s revenue
being in local currency which exposes the off-taker to foreign exchange risk;
ii. Lack of clear guidelines on procurement of power projects resulting to delayed
procurement processes discouraging investments in the sector;
iii. Local and geopolitical factors impacting on the country’s economic growth exposes the
Government to demand risk;
iv. Lack of clear guidelines for collaboration both among energy sector agencies and between
the sector and external stakeholders.

Opportunities
i. Growing energy demand as a result of economic growth;
ii. Access to the evolving modern technology increasing efficiency in power generation;
iii. Existing legal framework on local content that will enhance local capacity and expertise
and provide opportunities for job creation;
iv. Utilization of Kenya’s vast renewable energy resources to enhance energy security;
v. Resource mobilisation by giving investor confidence;
vi. Availability of Partial Risk Guarantees (PRGs) and insurance facilities from multilateral
and financial institutions to de-risk project and promote investor confidence.

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2.14 Energy Planning and Devolution
2.14.1 Integrated Energy Planning
The Sessional Paper No. 4 of 2004 provided for integration of energy planning with the national
economic development plan, land use, social and environmental policies. Energy is an enabler for
all sectors of the economy and decisions on energy impact on other areas of the economy. Energy
planning in Kenya previously focused on electricity generation, transmission, and distribution
under the LCPDP. MoEP and its agencies have developed internal capacities in electricity
planning. The existing planning tools and models are inclined to electricity planning and not
integrated energy planning.
Due to concentration on electricity planning, other energy subsectors such as petroleum, renewable
energy, clean cooking, bio-energy and energy efficiency not adequately incorporated into the
energy sector planning. Integrated National Energy Planning require collaboration between the
National and County Governments among other stakeholders. The Constitution, provides for
County Government to undertake energy planning. All the County Governments energy plans are
to be incorporated into INEP. Access to complete and accurate energy data and information is
essential in development of INEP. An effective integrated energy planning requires adequate
financial resources and modern energy planning and modelling tools.
Challenges
i. Lack of whole sector planning with individual subsectors (electricity, petroleum,
bioenergy, etc.) separate planning thus inefficiencies and no synergies;
ii. Inadequate stakeholder collaboration among Government entities and private sector actors,
impacting on integrated energy planning;
iii. Lack of adequate financial resources, technical expertise, modelling and planning tools to
facilitate comprehensive integrated energy planning at all levels;
iv. Slow implementation of existing energy plans and strategies;
v. Lack of a centralized repository for data and information which can be used by all players
during energy planning.

Opportunities
i. Development partners and private sector are interested in supporting Kenya’s integrated
energy planning;
ii. Availability of energy planning technologies, tools and models such as geospatial mapping
and AI useful in energy planning;
iii. Local institutions and academia are involvement in energy research, providing a resource
base for innovation in energy planning.

2.14.2 Devolution of Energy Functions

The Constitution of Kenya provides for the National and County governments. The Fourth
Schedule of the Constitution, assigns functions between the National and County Governments.

32
Some functions are concurrent, while others are exclusive to either level of Government. The Fifth
Schedule of the Energy Act, specifies the functions of National and County Governments.
Challenges
i. Inadequate financing of the energy sector functions due to constrained budgetary
allocations;
ii. Lack of specific energy departments in most counties;
iii. Inadequate human resources and expertise needed to undertake the devolved energy
functions;
iv. Inadequate consultation among stakeholders planning, implementation, monitoring and
reporting of concurrent energy functions, leading to overlaps and inefficiencies;
v. Lack of legal and regulatory frameworks to guide their devolved energy functions.

Opportunities
i. Development partners and private sector interested to provide technical and financial
support to strengthen the capacity of counties to implement their devolved energy
functions;
ii. Counties are strategically structured to implement specific energy projects;
iii. The legal and regulatory framework provide for specific function, County and National
Government can collaborate with other stakeholders.

2.15 Land, Environment, Gender, Health and Safety

2.15.1 Land and Energy
The Energy Act provides for use of land for energy infrastructure, wayleave acquisition,
compensation, and decommissioning. The Constitution, and Land Act, 2012, categorize land as
private, public, or community-owned. Private land is individually owned, public land is managed
by the National Land Commission (NLC), and community land is under County Governments.
The NLC administers public land, manages land acquisitions for energy projects, and administers
compensation process. The Ministry of Lands develops policies, manages the National Land
Information Management System (NLIMS), and oversees land registration. County Governments
regulate land use and allocate land for public infrastructure.
Challenges
i. Large-scale energy projects cause economic and physical displacement;
ii. Inadequate legal frameworks, unclear procedures, stakeholder disputes, and insufficient
funding and inconsistent compensation delays project implementation;
iii. Infrastructure vandalism affects grid stability and consumer safety;
iv. Lack of digitized land process slows land acquisition process.

Opportunities
i. The country has vast land resources, for energy expansion;
ii. Advances in technologies such as GIS and drone surveillance eases land transactions;

33
 iii. Stakeholder collaboration creates synergies for land acquisition for energy projects.

2.15.2 Environment and Energy

Environmental management is important for sustainability in the energy sector. The Environmental
Management and Coordination Act (EMCA) 1999 provides the legal framework for environmental
management. Kenya's climate change policies, based on the Climate Change Act of 2016, aim to
achieve Vision 2030 goals through low-carbon development. The National Climate Change Action
Plans (NCCAPs) targets clean, safe, and affordable cooking fuels.
The energy sector impacts the environment in several ways: fossil fuel-based electricity generation
contributes to greenhouse gas emissions and climate change; biomass fuels causes deforestation,
biodiversity loss, and ecosystem degradation; large-scale projects such as hydropower dams and
geothermal drilling disrupt habitats and ecosystems; and renewable energy technologies generate
e-waste. Climatic changes causes droughts reducing hydropower generation, while floods and
storms damage infrastructure.
Challenges
i. Biodiversity and cultural requirements, stakeholder conflicts, and mitigation measures
associated with protected areas delays project implementation increasing costs;
ii. Inadequate environmental and social impact assessment causes disputes leading to delayed
energy projects;
iii. Inadequate stakeholder engagement for energy projects;
iv. Climate change adversely impacts on energy resources, programmes and projects;
v. Greenhouse gas emissions from energy activities contribute to global warming and climate
change;
vi. Improper e-waste disposal from energy equipment and materials lead to environmental
degradation.

Opportunities
i. Available regulatory and compliance framework to guide the sustainable utilization
renewable energy resources;
ii. Global interest in energy transition with provision for funding of renewable energy;
iii. Advances in technology provide mechanism to manage and monitor energy projects
adherence to sustainable environmental practices;
iv. Establishment recycling facilities of e-waste from renewable energy technologies creates
business opportunities.

2.15.3 Gender Equality, Diversity and Social Inclusion on Energy (GEDSI)

Gender Equality, Diversity and Social Inclusion (GEDSI) is key in achieving sustainable
development and social justice since it ensures that all individuals, regardless of gender, ethnicity,
age, disability, or other social-economic factors, have equal access to opportunities, resource and
rights. The GEDSI approach aims to address systemic inequalities and promote inclusive

34
development by removing barriers of discrimination towards marginalized and vulnerable
populations.
The energy sector has made progress in mainstreaming GEDSI into policies and programmes
towards the government goal of achieving universal access to electricity and clean cooking
solutions by the year 2030. A Gender Policy in energy was developed in 2019 to among others
strengthen institutional frameworks for gender equality in energy sector at both national and
county levels. Another key programme implemented was the Global Partnership for Results-Based
Approaches (GPOBA) under Kenya Electricity Expansion Project that targeted the expansion of
Kenya’s electricity grid into slum areas through an output-based aid approach at a subsidized cost.
The Government has been extending electricity connectivity in under severed areas through
construction of mini-grids. Life-line electricity tariff is intended to make electricity affordable to
the low-income earners.
Challenges
i. Inadequate involvement of the marginalized and vulnerable in policy and programme
conceptualization, design, implementation and monitoring;
ii. Limited human capacity and technical expertise at National and County Governments to
mainstream GEDSI in energy sector;
iii. Inadequate financing and budget allocation for implementation of dedicated GEDSI
programmes;
iv. Lack of GEDSI disaggregated data to inform policy and decision making;
v. Inadequate monitoring and evaluation framework on GEDSI.

Opportunities
i. Development partners and non-state have considerable knowledge and expertise in GEDSI
that the government can tap into;
ii. There exist compressive frameworks for mainstreaming and conducting audits on GEDSI.

2.15.4 Occupational Health and Safety

The Constitution guarantees fair labor practices and provides for the right to a safe and healthy
working environment and protection from hazardous conditions. The energy sector involves high-
risk activities in electricity generation, transmission, distribution, retailing and all renewable
energy projects, necessitating adequate safety measures. The Occupational Safety and Health Act
(OSHA) 2007 provides a framework on handling proactive safety measures, risk assessments, and
compliance mechanisms in the work place. The Energy Act 2019 mandates EPRA to ensure safety
and environmental compliance within the energy sector.
Challenges
i. Occupational safety and health awareness is low among employers, workers, and other
stakeholders;
ii. Inadequate systems for occupational injury data management and digitization of safety and
health processes;

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 iii. Inadequate work-life balance programs to address prevention, care and support with
syndemic diseases and psychosocial issues;
iv. Inadequate research on emerging and traditional occupational risks arising from fast
technological advancement;
v. Insufficient finance and budgetary allocation to facilitate compliance and enforcement
OSH requirements in the energy sector;
vi. The inadequacy of resources ranges from limited technical assistance and training needs to
support OSH development.

Opportunities
i. The availability of legal framework provides a framework on safety, risk assessments, and
compliance mechanisms;
ii. Allocation of additional resources towards addressing OSH challenges;
iii. Developing energy sector-specific disaster risk frameworks enhances resilience to hazards
and protects infrastructure.

2.16 Research, Development and Innovation

Research, Development, and Innovation (RDI) are essential for advancing Kenya's energy sector.
Kenya can reduce electricity costs, foster local manufacturing, and become a global hub for
cutting-edge energy technologies in sustainable and innovative energy solutions by streamlining
RDI. Despite notable progress, RDI activities remain fragmented, resulting in sub-optimal
outcomes and missed opportunities. By streamlining RDI efforts, Kenya can reduce electricity
costs, foster local manufacturing, and become a global hub for cutting-edge energy technologies.
Integrating RDI into Kenya’s energy policy is a strategic pathway to unlocking significant
opportunities, including driving job creation, reducing electricity costs, and accelerating green
industrialization. Key to this strategy is fostering collaboration between academia and industry,
underpinned by supportive government policies that align with Kenya’s green energy ambitions.
Strengthening intellectual property (IP) protection will be critical to safeguarding innovations,
incentivizing inventors, and attracting investors to the sector. Establishing dedicated RDI budgets
at institutional levels will enable consistent experimentation, pilot projects, and scaling of new
technologies.
Challenges
i. Lack of coordination among energy sector stakeholders in RDI activities leading to
duplication;
ii. Inadequate research and dissemination due to limited financial resources and facilities for
RDI;
iii. Inadequate local content t in the energy sector has resulted to reliance in foreign expertise
for RDI.

Opportunities

36
 i. Available research institutions, universities, and think tanks that provide technical
expertise and conduct specialized studies on energy resource availability, technological
innovations, and energy system modeling;
ii. Collaboration with stakeholders to research on new technologies and innovative projects;
iii. The sector's strong culture of creativity and innovation enhances its capacity for
transformative advancements and adoption of emerging technologies;
iv. Strengthening intellectual property (IP) protection to safeguarding innovations,
incentivizing inventors, and attracting investors to the sector;
v. Establishing dedicated RDI budgets at institutional levels will enable consistent
experimentation, pilot projects, and scaling of new technologies.

2.17 Human Resource Development & Retention

Human resource development is important in the energy sector. The development and retention of
a skilled workforce will enable efficient execution of their mandates towards realizing sustainable
energy goals. Institution-specific programs such as Kenya Power’s Institute of Energy Studies and
Research, KenGen’s Centre of Excellence, and GDC’s Geothermal Centre of Excellence are
important in training and retaining high-caliber professionals in energy sector. By leveraging on
Kenya’s youthful, tech-savvy population and nurturing a culture of innovation, the energy can
develop dynamic workforce to advance the emerging technologies in the energy sector.

Challenges
i. Lack of a centralized process and inter-institutional collaboration in research and
training personnel in the energy sector;
ii. Insufficient budgetary allocation for human resources function within the various
agencies in the sector;
iii. Limited institutions and specialized curricula in bridging knowledge and skills, and
sector demands;
iv. Weak linkages and collaboration among sector entities, academia, and research
institutions, limiting knowledge transfer and innovation;
v. The absence of a centralized system for identifying and tracking human resource
capacities in the energy sector.

Opportunities
i. There is exists collaboration mechanism with the development partners for training
energy sector staff;
ii. Kenya has a youthful, well-educated workforce with strong potential for skills
development;
iii. Digitalization and E-Learning platforms to provide cost-effective training for energy
sector professionals.

37
2.18 Cyber Security and ICT
Cybersecurity and data protection in the energy sector aim to safeguard the confidentiality, and
integrity of digital assets. The energy sector entities are committed to ensure compliance with data
protection laws and policies. Energy sector entities have developed cybersecurity and data
protection policies tailored to secure critical infrastructure and sensitive data. These policies align
with the Computer Misuse and Cybercrimes Act of 2018, Access to Information Act, No. 31 of
2016, the Kenya Information and Communication Technology (KICT) Act of 2011 and IT
Governance Standards established by the ICT Authority. These frameworks ensure that ICT
systems within the sector comply with the prevailing laws and national standards. As the sector
adopts digital solutions, compliance with these laws require future investments in ICT
infrastructure, data backups, and systems to mitigate risks.

Challenges
i. Existing ICT systems lack modern cybersecurity features and there is inadequate
integration of cybersecurity within energy infrastructure, with limited awareness and
adoption of best practices;
ii. Inadequate safeguards from cyber threats such ransomware, phishing, and malware
targeting critical infrastructure;
iii. Inadequate compliance to laws and regulations on data protection;
iv. Weak linkage and collaboration mechanism among sector institutions on ICT and cyber
security;
v. The integration of smart grids, IoT devices, and digital tools without matching cyber
security safeguards.

Opportunities
i. Availability of data protection laws which supports secure data sharing and management;
ii. Co-ordination with Office of the Data Protection Commissioner towards compliance with
data protection regulations;
iii. Establishment of the energy sector Computer Emergency Response Team (CERT) that
monitor and mitigate cybersecurity incidents on critical energy infrastructure;
iv. Regular security audits and vulnerability assessments to identify and address potential
cyber threats;
v. The availability of AI and machine learning for threat detection and response;
vi. The availability of block-chain technology to secure energy transactions and grid
management.

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CHAPTER THREE: ENERGY POLICY STATEMENTS
3 Overview
This chapter outlines Kenya’s energy policy statements, which provide strategic direction and
actionable measures to address the challenges identified in the situation analysis. The policy
interventions focus on key thematic areas, including electricity access, renewable energy
development, clean cooking, energy efficiency, emerging technologies, and climate change
mitigation. These policy statements aim to enhance energy security, promote sustainability, and
ensure equitable energy access for all Kenyans.

3.1 Electricity Access

The country faces significant challenges towards achieving universal access to electricity. These
are high grid expansion costs and modernization of ageing infrastructure that affects electricity
stability, reliability and sustainability. Limited investment has slowed the development of mini-
grids and off-grid solutions in remote rural areas. The Government is committed to provision of
equitable, reliable, and sustainable energy for all Kenyans.

To achieve the above objective, the Government will:

i. Develop and implement the Least Cost Electrification Strategy for universal access to
electricity;
ii. Finalize the regulatory framework for development and operation of mini grids and off-grid
solutions that support innovative business models;
iii. Develop innovative pricing models to make connections and electricity tariffs more
affordable for low income earners;
iv. Collaborate and partner with development partners and other financial institutions for
electrification funding;
v. Modernize energy infrastructure, invest in renewable energy and implement smart
technologies to improve reliability.

3.2 Development of Renewable Sources and Non-renewable Sources

3.2.1 Generation
The installed generation capacity as at December 2024 was 3,236 MW, with a net effective
interconnected capacity of 3,082 MW, inclusive of wind and solar. The installed capacity is
composed of 940 MW of geothermal, 838MW hydro, 605.8 MW fossil fuels, 435wind, 212.5MW
solar, 200 MW import and 2MW co-generation.
3.2.1.1 Hydro Power
Hydropower development requires balancing the benefits of renewable energy generation with the
need for environmental and social safeguards. There is need to achieve sustainable energy
development goals while protecting and conserving the ecosystem.
To achieve this, the Government will:

39
 i. Streamline and strengthen inter-agency collaboration for hydro project development;
ii. Develop and implement mechanisms to mitigate the adverse effects of climate change and
enhance restoration of catchment areas;
iii. Provide adequate resources and mechanisms for the acceleration of hydropower
development, mitigate environmental and social impacts;
iv. Leverage automation and emerging hydro technologies and invest in RDI to enable the
harnessing of the varied hydro resources in the country.
3.2.1.2 Geothermal Power
Geothermal resources are important for the country’s energy strategy and security, providing
sustainable and reliable power generation with the potential for tremendous growth in direct-use
applications and green industrialization. However, managing and developing these resources face
many challenges and including long project lead times, substantial upfront capital investments and
resource risk among others. The uncertainties and delays in geothermal resource development pose
significant risks to the country’s energy security.
As Kenya transitions to a liberalised power market, the Government intends to leverage on local
capacity and expertise to accelerate the development of the geothermal resources while
strengthening its regional leadership position. This is aimed at enhancing energy security and
competitive electricity prices that will spur economic growth.
To achieve this objective, the Government will:
i. Strengthen the legal and regulatory framework to:
a. Enforce the geothermal resource licensing and compliance mechanisms;
b. Leverage local capacity and expertise to accelerate geothermal development,
green industrialization and ensure energy security;
c. Incentivize local innovation in geothermal technologies and solutions.
ii. Develop and operationalise the National Geothermal Development Strategy;
iii. Establish a legal and regulatory framework to enable the geothermal public institutions to
develop, invest and own geothermal plants in the region.

3.2.1.3 Variable Renewable Energy (Wind and Solar)

VREs such as solar and wind power, are important in the global transition to sustainable energy
systems. However, the intermittency of these resources necessitates optimal energy planning and
integration measures for grid’s reliability and stability. In Kenya, leveraging VREs aligns with
national goals to diversify the energy mix, reduce carbon emissions, and foster energy access.
Kenya can unlock the full potential of VREs to support its sustainable development agenda by
addressing challenges such as intermittency, waste management of VRES technologies, and over-
dependence on imported technologies and storage solutions.
To achieve the above objective, the Government will:
i. Develop and implement mechanisms to support solar & wind integration;
ii. Establish an enabling environment to spur local manufacturing hubs to reduce import
reliance;

40
 iii. Establish and centralize a data management repository for VREs resources to ease
stakeholders' and investors’ access;
iv. Operationalize the Renewable Energy Auction Policy to improve VREs’ competitiveness.

3.2.1.4 Thermal power

Power generation from fossil thermal plants in Kenya has been declining following development
of more capacity from geothermal, wind and solar energy resources. Contracting of 200MW from
Ethiopia has reduced thermal generation in line with the power sector goal of keeping the thermal
generation at below 10% of the annual energy mix in order to minimize the cost of energy and also
meet environmental goals on clean energy. However, the plants play a critical role in meeting the
peak power demand and backing up other sources including the variable solar and wind. Further,
thermal plants play a critical role in off-grid stations which serve commercial centers located far
from the national grids. These centers are being hybridized with solar PV sources to minimise
generation costs and emissions in line with national objectives.
To achieve the above objectives, the Government will:
i. Prioritise development of renewable energy sources over thermals but retain the current
thermal plants until expiry of their contracts;
ii. Minimise dispatch from thermal plants to reduce the cost of energy;
iii. Continue to hybridize off-grid stations with solar and wind;
iv. Shift from heavy fuel oil to LNG for existing thermal plants and development of LNG
plants for system flexibility in the event that flexible renewable energy options are not
available.

3.2.1.5 Nuclear Energy

Introduction of nuclear power into Kenya’s energy mix requires the development of the necessary
framework and infrastructure. This relates to the safety aspects in development, construction,
operation, maintenance, decommissioning, and waste management of the nuclear power program
and related amenities. Developing a nuclear power programme in Kenya has notable challenges,
due to the high capital investment for the infrastructure, technical expertise, public concerns about
safety and environmental impacts. These obstacles necessitate strategic planning, robust
stakeholder engagement, and clear policy frameworks to ensure the programme's feasibility,
sustainability, and public acceptance while contributing to the nation's long-term energy security
and low-carbon goals.
To achieve the above objectives, the Government will:
i. Establish and sustain governmental strategy, legal and regulatory frameworks towards the
development, implementation and maintenance of a safe, secure and sustainable nuclear
power programme;
ii. Establish a nuclear power plant owner and operator to initiate construction of a nuclear
power plant and later operate the plant;

41
 iii. Undertake capacity development and resourcing for sustainable nuclear infrastructure
development and management of intricacies of atomic technology;
iv. Enhance public awareness campaigns on the safety and benefits of nuclear energy, which
is a prerequisite for public buy-in and acceptance of nuclear programs;
v. Leverage the latest nuclear power technologies, such as small modular reactors scalable to
Kenya’s current grid size.

3.2.2 Transmission and Distribution

3.2.2.1 Transmission
A reliable and stable transmission network is necessary for efficient and adequate power supply.
A stable transmission network enhances electricity access and power evacuation from generation
plants to load centres. It also interconnects with neighbouring countries for power trade and system
stability. The transmission network require continued upgrading and strengthening to reduce losses
and improve the reliability and security of the power supply. Appropriate operation and
maintenance guarantee the availability of the network for an uninterrupted power supply.
Therefore, to effectively and efficiently transmit power in the country, the Government will:
i. Expand, strengthen and modernise the transmission network to foster grid stability,
resilience and reliability;
ii. Mobilize adequate funding for transmission infrastructure development, modernization,
operation and maintenance;
iii. Enhance local expertise in transmission infrastructure operation and maintenance;
iv. Facilitate timely and cost-effective acquisition and management of land and wayleaves for
transmission infrastructure and control encroachment of wayleaves;
v. Categorize transmission infrastructure as critical national assets to enhance safety and
security of the infrastructure;
vi. Transfer the transmission assets from KPLC to KETRACO;
vii. Fast-track the formulation of Open Access and Bulk Supply Regulations.

3.2.2.2 Electricity Distribution

Kenya’s electricity distribution system has expanded over the years, to meet the Government’s
objective of universal electricity access by 2030. The expansion of the distribution system with
inadequate reinforcement has constrained supply reliable and quality electricity to customers.
Rural electrification programmes by KPLC and REREC has expanded electricity access in rural
areas. However, the tariff framework does not provide sufficient funds to meet the operation and
maintenance requirements.
Therefore, to ensure a reliable and efficient distribution system, the Government will:
i. Prioritise investments in modernising and expanding the electricity distribution
infrastructure to minimise power losses, improve system reliability, and support the
growing electricity demand;

42
 ii. Adopt innovative grid technologies and advanced metering infrastructure to improve
operational efficiency and facilitate demand-side management;
iii. Enhance the resilience of the electricity distribution network against natural disasters,
climate change impacts, and other disruptions;
iv. Promote decentralised systems such as mini-grids and solar home systems to complement
the national grid in remote rural areas;
v. Facilitate open access to the distribution network to optimise network utilisation as the
sector transitions to a competitive electricity market;
vi. Develop sustainable ownership and operational and maintenance modalities for rural
electrification assets.

3.2.2.3 Electricity Retail

The country shall facilitate further development of electricity retail function to enhance the
efficiency of energy distribution and supply and promote optimal utilization of resources. This
shall ride on the enabling policies such as the open grid access, captive power, net-metering and
the power market. In this regard, the government will:
i. Implement policies frameworks to facilitate competitive retail of electricity models with
enhanced participation of private players;
ii. Encourage structuring of PPAs that allow generators to retail power to retail customers;
iii. Facilitate development of greenfield projects that support direct retailing and energy trade
in local and regional power markets;
iv. Pursue public-private partnerships for energy bulk sale agreements with the national off-
taker and downstream retailing by private energy supply companies;
v. Facilitate development and operationalization of a local energy market.

3.2.2.4 System Operations

System operations in Kenya face critical challenges that undermine grid reliability, resilience, and
efficiency. These include; insufficient ancillary services to manage renewable energy
intermittency, inadequate transmission infrastructure, reduced system inertia from
decommissioned synchronous sources, and limited islanding capabilities. Additionally, there gaps
in operational controls and a shortage of skilled personnel. There is need for a stable, efficient, and
future-ready energy system capable of supporting Kenya's growing energy demands and
renewable energy technologies.
Therefore, to meet the above objectives, the Government will:
i. Establish reliability/ancillary services to regulate the system and control intermittency from
VRE generation;
ii. Facilitate investment in strengthening the transmission grid infrastructure to minimise
system losses, improve the dispatch of competitive generation sources, and enhance the
quality and reliability of services;

43
 iii. Establish human capital incentives including specialized training programmes to improve
technical skills and ensure a sustainable workforce for system operations.

3.2.2.5 Power Trade

Electricity markets are designed to provide reliable electricity at the least cost to consumers. A
standard market design for wholesale electric markets aims to establish a common market
framework that promotes economic efficiency and lowers delivered energy costs, maintains power
system reliability, mitigates significant market power and increases the options for wholesale
market participants. Planning and focus on basic market principles are key to achieve market
objectives.
Therefore, to effectively and efficiently develop and operationalise power trade in the Country, the
Government will:
i. Develop and gradually implement power market design and structure to guide market
operations;
ii. Establish programmes to build and enhance market operations technical capacity in terms
of skills and human resources;
iii. Prioritise and develop power infrastructure to promote power market operations and
regional integration.
3.2.3 Captive Power and Net Metering
In Kenya, captive power plants and net metering mechanism have the potential to enhance energy
security while supporting the integration of renewable energy in the grid. However, a connection
framework for managing the integration process, operation, and monitoring of captive plants, as
well as a compensation mechanism for ancillary services provided by the grid to the grid-tied
captive power developers to guide the implementation, is required.
To achieve this, the Government will:
i. Establish guidelines for the integration, operation, and monitoring of captive power plants
to ensure safe and efficient grid interactions;
ii. Develop compensation mechanisms for ancillary services provided to grid-tied captive
power developers;
iii. Develop and implement technical standards and operational protocols to mitigate risks to
grid stability and safety from captive plant operations.
3.2.4 Energy Storage Systems (ESS)
Energy Storage Systems (ESS) are essential for grid stability and reliability, as the country
integrates more VREs into the power system. The Government has committed to achieving 100%
clean energy by 2030, and ESS will contribute to these targets.
To achieve this, the Government will:
i. Develop innovative funding models with for finanancing ESS capital cost;
ii. Establish a regulatory and institutional frameworks and guidelines for energy storage
development;
iii. Facilitate building local expertise through international collaboration on ESS;

44
iv. Establish a framework for the participation of the private sector in development and
implementation of the ESS.
3.2.5 Reliability and Ancillary Services
Kenya has vast renewable energy resources. Due to increased VRE in the system and the grid
extension, ancillary services are necessary to maintain system stability and integration of VREs.
To achieve this, the Government will:
i. Establish regulatory framework and guidelines for reliability/ancillary services
development, integration and compensation in the Kenyan power system;
ii. Collaborate with regional countries to harmonise ancillary service provision standards and
regulations;
iii. Invest in training and capacity building to equip the sector’s manpower with technical skills
to manage RS effectively;
iv. Establish financing, collaboration and incentive frameworks to enhance AS in the Kenyan
power system.

3.2.6 Power Market

The Kenya power system plays a central role in economic growth and improving the quality of life
by providing electricity to households, social institutions, industries and businesses. The system is
a single buyer model where KPLC procures power in bulk from generators through PPAs then
distribute and retail it to consumers. There has been increased electrification in the country, but
challenges in financial sustainability, infrastructure modernization, and regulatory adequacy exist.
The Government is committed to reform the power market from a single-off-taker model to a
competitive wholesale electricity market in order to improve the efficiency and sustainability of
the sector.
To achieve the above objective, the Government will:
i. Develop a regulatory framework and roadmap to transition the power sector to a
competitive power market;
ii. Develop a framework for wholesale and retail electricity market to enable bulk energy
trading and provide consumers options for electricity suppliers;
iii. Strengthen the institutional framework to manage competition in the electricity market and
provide equal opportunities to all market participants;
iv. Collaborate with the EAPP in regional power market design.

3.3 Clean Cooking and Bioenergy

3.3.1 Clean Cooking
Clean cooking reduces pollution and related respiratory diseases. Various underlying barriers limit
the optimization of the clean cooking sub-sector’s contribution to national climate obligations, and
the achievement of access to clean cooking for all Kenyans by 2030. These barriers include: limited
public financing; slow pace of integrating clean cooking measures in national and county planning

45
frameworks; and delays in operationalization of relevant legislative measures such as the energy
funds. The supply and affordability gaps need to be resolved.

To address the challenges and leverage opportunities, the Government will:

i. Enable affirmative action towards the achievement of universal access to clean cooking by
2030 through implementation of the KNCTS and other supporting strategies while
observing the principle of GESI;
ii. Establish a financing mechanism to fast track the implementation of the clean cooking
access goal by 2030;
iii. Provide legislative and fiscal support to all social institutions and MSMEs to switch to
clean cooking solutions by 2030;
iv. Support counties to mainstream clean cooking as part of integrated energy planning;
v. Mainstream cooking within broader energy sector initiatives, specifically electricity access,
energy efficiency and grid strengthening projects;
vi. Review building guidelines and codes to enable construction and retrofitting of buildings
to create clean cooking environments and reduce indoor air pollution;
vii. Establish programmes to enhance technical capacity of relevant agencies to develop and
enforce regulations related to minimum energy performance standards for clean cooking
appliances, including the establishment of testing laboratories;
viii. Adopt fiscal policies that support local manufacturing of clean cooking technologies;
ix. Enhance public awareness and capacity to accelerate the uptake of clean cooking solutions
through behavior change;
x. Promote research and knowledge management for the clean cooking sector.

3.3.2 Liquefied Petroleum Gas and Natural Gas

The consumption of LPG is bound to grow with increasing population. The importation and
distribution network are inadequate. Opportunities to increase the use of LPG in households and
institutions are available and can be leveraged to help the country meet the set targets. The
exploitation of natural gas resources needs to be enhanced to complement the importation of LPG.
To enhance the uptake of LPG in households, institutions and SMEs, the Government will:
i. Develop adequate LPG infrastructure for importation, storage and filling including
construction of a common user storage facilities for imported LPG to enhance reliability of
supply;
ii. Promote competitive importation and pricing of LPG through Open Tender System (OTS)
to enhance reliability of supply and address the pricing issues;
iii. Mobilize funding and build technical capacity to enforce compliance with the existing
regulations;
iv. Review the existing building codes to include LPG reticulation for enhanced access;

46
 v. Ensure compliance of LPG and related facilities to statutory requirements on safety, quality
and standards;
vi. Promote diversified use of LPG for domestic, automotive and commercial purposes;
vii. Strengthen the legal and regulatory framework for the natural gas industry;
viii. Facilitate development and utilization of natural gas and the associated infrastructure.

3.3.3 Electric Cooking Solutions

There are good prospects for enhancing the uptake of electric cooking, based on the electricity
access level and the number of households that have not yet adopted eCooking. The country has a
green energy grid that can support increased demand for electric cooking. However, challenges of
inadequate supply chain and tariff, unreliability of electricity supply and limited awareness are a
constraint.
To address the challenges relating to the uptake of e-Cooking, the Government will:
i. Incentivize local manufacturers of energy efficient eCooking solutions;
ii. Initiate innovative financing programmes to develop supply chains for energy-efficient
eCooking solutions;
iii. Facilitate the evolution of electrical supply and use infrastructure, and eCooking loads in
parallel;
iv. Develop fiscal incentives to promote affordability of energy efficient eCooking solutions;
v. Strengthen eCooking appliance quality assurance ecosystem;
vi. Enhance awareness and develop skills and knowledge on energy efficient e-Cooking
solutions.

3.3.4 Bioenergy
The present bioenergy subsector is unsustainable due to inefficient technologies, to harness the full
potential of the industry as it remains in its nascent form. To address the challenges of the bioenergy
value chains for cooking and heating, transport, SAFs, cogeneration, gasification and waste to
energy through the following:
3.3.4.1 Bioenergy for Cooking and Heating
The exploitation of bioenergy for cooking and heating using biomass, biofuels and biogas has been
low due to slow adoption in the country. To address this challenge the Government will:
i. Review the existing fiscal, legal, regulatory and institutional frameworks to promote
diversified and sustainable application of biomass, biofuels and biogas solutions;
ii. Undertake data collection, comprehensive mapping and planning for biomass, biofuels
and biogas;
iii. Promote measures to enhance local production of biomass, biofuels and biogas value
chains development.
3.3.4.2 Bioenergy for Transport
The use of biofuels to decarbonize the transport sector is still not fully exploited in the country
despite the country having a high potential to produce bioethanol and biodiesel for use in fuel

47
blending in the sector. To address this challenge and leverage on the opportunities the Government
will:
i. Formulate and implement blending mandates for bioethanol and biodiesel;
ii. Promote local production of bioethanol and biodiesel for use in transport sector.
3.3.5 Cogeneration, Gasification and Waste to Energy
To address the challenges and leverage existing opportunities for power generation using
cogeneration, gasification and waste to energy the Government will formulate and implement a
measures to promote cogeneration, gasification and waste to energy initiatives.
3.3.6 Sustainable Aviation and Marine Fuels
SAFs is revolutionizing the aviation industry by offering a greener alternative to traditional jet
fuels. Marine fuels also offer a decarbonization pathway in marine sector.
To enhance the use of SAFs in the aviation and marine industry the Government will:
i. Develop a framework for oversight and coordination of SAF and clean marine fuel
production;
ii. Facilitate research and development to scale up the use of biofuels and green hydrogen;
iii. Strengthen international partnerships to align with global climate goals and technology
advancements;
iv. Establish policies to integrate sustainable fuels into national energy strategies.

3.4 Demand Stimulation

Stimulating electricity demand, investments in energy generation and infrastructure will translate
into tangible economic, social and environmental benefits.
To stimulate demand, the Government will;
i. Enhance collaboration within Government MDAs and the private sector to encourage
demand stimulation like promotion of SEZ electricity;
ii. Invest in grid infrastructure modernization to increase stability and reliability to support
economic activities;
iii. emerging technologies on e-appliances and e-cooking;
iv. Review the Time of Use tariff to reach more consumer categories;
v. Formulate electricity market, bulk supply and open access regulations and finalize the
market design to enable energy exchange and competition.

3.5 Diverse and Productive Uses of Energy

The country has not fully exploited diverse and productive use of energy. There has been
inadequate collaborative mechanism among stakeholders both public and private sector on DPUE.
To facilitate alignment, coordination and growth for DPUE, the Government will:
i. Develop and implement policies, strategies and regulations to promote DPUE including
geothermal resources in collaboration with other sectors;
ii. Establish an intergovernmental multisectoral working group to coordinate
implementation of DPUE;

48
 iii. Develop appropriate incentives and fiscal measures to enhance promotion and adoption
of DPUE technologies;
iv. Design and implement capacity building, awareness initiatives programs targeted at
relevant stakeholders.
3.6 Emerging Technologies
Emerging technologies in the energy sector, such as green hydrogen, oceanic energy, IOT, carbon
capture and advanced energy storage systems can address specific energy challenges such as
enhanced grid stability, and diversified energy mix.
In this regard, the Government will:
i. Ensure funding of research and development of emerging technologies;
ii. Establish partnerships with the private sector, and international organizations to support
emerging technologies development, knowledge transfer and capacity development;
iii. Invest in training programs to improve technical skills of workforce in emerging
technologies.

3.7 Green Hydrogen

Green Hydrogen offers Kenya a transformative path to decarbonize key sectors, leveraging its
renewable energy potential to achieve net-zero emissions. To promote the development of a green
hydrogen economy, encompassing regulatory standards, and financial mechanisms to drive
innovation, infrastructure development, and market growth while ensuring environmental
sustainability and global competitiveness, the Government will;
i. Establish a centralized coordination framework to support the nascent green hydrogen
industry by facilitating private and public sector green hydrogen investments, regulations,
finance and investments;
ii. Establish contracts for difference to support offtake of green hydrogen and its derivatives
by making it cost competitive by leveraging on global climate funds to bridge the cost gap
between green hydrogen production and its fossil-fuel-based alternatives;
iii. Facilitate common infrastructure development by funding the development of hydrogen
transport, storage, and export infrastructure to reduce logistical bottlenecks;
iv. Create opportunities for local value creation in the green hydrogen industry through
strategic collaboration and capacity building.

3.8 Energy Transition and Climate Change

Kenya is experiencing the impacts of climate change as it’s a global occurrence. The energy sector
has been impacted directly by climate change effects. The generation of hydro power and other
renewables sources has been reduced becoming unreliable and unavailable and there is the risk on
energy security. By mitigating climate change, Kenya can reduce the intensity of its future risks
and ensure energy security for the country. By reducing greenhouse gas emissions from energy
uses, Kenya can slow down or even prevent further temperature rises and extreme weather events.

49
The government recognizes the important role that energy transition plays towards climate change
mitigation and has developed the Kenya Energy Transition and Investment Plan. A just energy
transition for Kenya will secure Kenya’s energy independence and optimize the socio-economic
benefits.
Towards a just energy transition, the Government will:
i. Develop a regulatory framework for the adoption of clean energy technologies;
ii. Promote the deployment of flexible technologies in industrial and power sectors to reduce
carbon emissions;
iii. Mainstream energy transition in energy planning with a development framework around
new value chains;
iv. Enhance knowledge and technical capacity development adoption of emerging low-
carbon technologies.

3.8.1.1 Carbon Markets and Carbon Financing

In Kenya, carbon credits arise mainly from projects involving renewable energy, forestry, waste
management, and agriculture. The country recognizes the importance of reducing emissions,
mitigating climate change, and improving the quality of its environmental standards.
The Government will develop and implement a standardized framework for carbon markets in
Kenya.

3.9 Critical Energy Minerals

Critical minerals could be central to Kenya’s economy, offering significant potential for industrial
growth, job creation, and increased export earnings. These minerals are essential for key sectors,
such as renewable energy, electric vehicle manufacturing, and advanced technology. Despite their
potential, critical minerals in Kenya remain under-exploited due to limited exploration, insufficient
legal and regulatory framework, inadequate mining infrastructure, and insufficient investment in
value addition. However, the Government recognises the strategic importance of these resources
and is committed to harnessing them to boost economic growth and transform local renewable
energy-related industrialization.

To achieve this objective, the Government will:

i. Develop a regulatory framework to integrate critical mineral exploitation with renewable
energy development;
ii. Develop and implement regulations to spur investment in local processing;
iii. Strengthen government institutions to explore critical minerals and provide data to boost
investor confidence;
iv. Develop and implement a critical mineral strategic plan to guide targeted and deliberate
exploitation of these minerals.

50
 3.10 Development of Critical Geo-energy Resources
3.10.1 Coal Resources for Energy Production
The country has coal reserves which have not been harnessed. The coal demand for use in high
heat industrial processes will continue to increase. Reliance on imports may not be a sustainable
due to the changing dynamics in energy supply systems globally. The country will benefit from
sustainably exploiting the resource through clean coal technologies, to support its energy security.
To achieve this objective, the Government will:
i. Promote sustainable development of coal resources to meet the country’s energy
requirements;
ii. Develop and implement measures to promote clean coal technologies to mitigate
environmental impacts;
iii. Promote exploration and development of coal resources.

3.10.2 Natural Gas

The Government will:
i. Strengthen the legal and regulatory framework for the oil and gas sector to include the natural
gas industry;
ii. Facilitate development and utilization of natural gas and associated infrastructure.

3.11 Energy Efficiency and Conservation

The Government has set a target of reducing the national energy intensity by 2.8% per year and
enabling the country achieve a 32 % emission reduction by 2030 in line with its Sustainable
Development Goal targets. However, the following issues still persist; the market remains
dominated by low-efficiency appliances that are not covered in the existing MEPS; limited access
to financing; lack of awareness and aging infrastructure.
To address these issues, the Government will:
i. Enhance coordination and resource mobilization of energy efficiency and conservation
programs;
ii. Enhance implementation of energy efficiency and conservation programs in key economic
sectors;
iii. Enhance knowledge and awareness on energy efficiency and conservation;
iv. Promote adoption of electric vehicles;
v. Mainstream energy efficiency and conservation in learning institutions.

3.12 Energy Financing, Pricing and Procurement

3.12.1 Energy Financing and Pricing
Kenya’s energy sector requires a strategic and sustainable financing and pricing mechanism to
ensure economic feasibility, financial viability, project bankability and investment security. To
sustainably mobilize requisite financial resources, improve the investment climate, foster investor
confidence, maintain viability of energy projects and improve financial status of energy utilities

51
and at the same time ensure cost-reflective tariffs, the Government will implement the following
measures;

i. Explore and adopt viable and sustainable financing options from local and international
sources to ensure cost effective utilization of locally available energy resources;
ii. Develop frameworks for sustainable innovative financing mechanisms such as PPPs, assets
monetization, climate financing and local equity funds;
iii. Operationalize Consolidated Energy Fund and allocate adequate resources for both
national and county levels;
iv. Adopt diversified internal revenue generation frameworks to increase revenue generation
within the sector;
v. Provide targeted fiscal incentives, such as tax exemptions, subsidies, or grants, to support
low-income households to ensure equitable access to energy;
vi. Provide adequate fiscal incentives and harmonize various charges levied on energy
operations to create an attractive and predictable investment environment in the energy
sector;
vii. Operationalize the draft Renewable Energy Auctions Policy for competitive pricing and
improved risk management of renewable projects;
viii. Review of electricity tariffs every three years to ensure predictability, timely recovery and
cost-reflective tariffs.

3.12.2 Power Procurement

Power procurement methods and mechanisms that enable price discovery, ensure cost efficiency
and transparency in project selection are preferred for power procurement. This approach supports
the growth of the renewable energy sector while balancing affordability, investor confidence and
consumer protection.
To facilitate effective procurement of power projects, the Government will:
i. Develop and implement power procurement guidelines, standardized processes, and
practices to enhance transparency and attract investments in the energy sector;
ii. Enhance collaboration between sectors and agencies to fast-track developments that
increase electricity capacity expansion.

3.13 Integrated Energy Planning, Security and Devolution

3.13.1 Integrated Energy Planning
INEP will help the Government and other stakeholders to make investment decisions as well as
using it as a tool for resource mobilization. INEP will define the country’s energy development
goals as well as the role of various stakeholders in the energy sector.
To enhance the integrated energy planning in the sector, the Government will:
i. Establish an institutional framework for integrated energy planning at the National and
County level;

52
 ii. Enhance knowledge and technical capacity of counties, ministries and other
Government agencies in integrated energy planning;
iii. Mobilize financial resources for integrated national energy planning;
iv. Develop mechanism for implementation, monitoring and evaluation of energy plans;
v. Establish data management and governance structure in the energy sector;
vi. Establish mechanisms for regular stakeholder engagement to foster a shared
understanding;
vii. Collaborate with research institutions, academia to undertake research, capacity
building, technical assistance and innovation in to energy planning;
viii. Support use of geospatial tools and harmonize energy planning tools used for integrated
energy planning at National and County level.

3.13.2 Energy Security

Enhancing energy security is a priority for the country. To achieve this, the Government will
i. Ensure the power development plan (LCPDP) factors various sources of energy in the long
term to maintain a diverse energy mix;
ii. Facilitate public and private investment across the power supply value chain;
iii. Minimize dispatch of thermal plants and avoid development of non-renewable energy
resources;
iv. Undertake feasibility studies for pumped hydro projects including identification of suitable
sites;
v. Ensure development of adequate firm capacity in order to maintain at least 15% firm power
generation capacity reserve above the peak demand annually, with national energy sources
at no less than 10% of the annual peak or projected peak demand;
vi. Put in place adequate strategies for national energy independence to ensure firm power
import contracts do not exceed 20% of the annual peak or projected demand in each year;
vii. Mobilize adequate investments towards development of strong national grid infrastructure
and regional grid interconnections with neighboring countries for resilience, cross-border
exchanges and flexibility.

3.13.3 Devolution
The primary objective of devolution is to re-align the two-tier governance system to ensure
effective and efficient public service delivery. The National and County Governments continue to
collaborate in implementation of energy programs. However, the Counties are yet to fully
undertake their respective devolved energy functions due to inadequate financial resources, lack
of dedicated energy units at the Counties, and inadequate coordination between the National and
County Governments.
In order to achieve the objective of devolution of energy functions, the Government will support
the Counties to;
i. Mobilize adequate financial resources for implementation of devolved energy functions;

53
 ii. Establish their respective, dedicated energy directorates;
iii. Support Counties in building capacity to discharge their devolved energy functions;
iv. Promote development county specific energy policies and regulations;
v. Establish collaborative mechanism among strategic local and international partners and
stakeholder to support counties undertake their energy mandate.

3.14 Enabling Frameworks

3.14.1 Land Acquisition
Kenya's energy sector faces significant challenges in land acquisition and management. These
include inadequate legal frameworks, stakeholder disputes, and insufficient funding, compensation
grievances, leading to delays in project implementation.
The Government will:
i. Develop and implement a standardized framework for land and wayleave acquisition for
energy projects;
ii. Implement public sensitization and participation programs for energy projects and
programmes.

3.14.2 Environmental Issues in Energy

Kenya's energy sector impacts the environment through greenhouse gas emissions, deforestation,
biodiversity loss, and e-waste generation, while large-scale projects disrupt ecosystems and water
resources. Conversely, droughts due climate change reduce hydropower generation and floods
damage infrastructure. Lack of proper e-waste management infrastructure affects sustainability
and compliance with global standards. Kenya's renewable energy potential supports sustainable
development, aligned with the global energy transition.
To mitigate the environmental challenges and leverage on available opportunities, the Government
will:
i. Develop and implement environmental sustainability framework for energy sector
projects;
ii. Establish programmes to enhance energy sector technical capacity to comply with
environmental management regulations.

3.14.3 Gender Equality, Diversity and Social Inclusion in Energy

GEDSI principles advocate for equal access and opportunities and removing the barriers of
discrimination towards marginalized and vulnerable populations. There is insufficient GEDSI
responsive institutional frameworks across the sector and gender mainstreaming into energy sector
activities remains low and inadequate.
To address GEDSI challenges and leverage on available opportunities, the Government will:

i. Develop GEDSI Strategy and Action Plan;

ii. Collaborate with relevant stakeholders in promoting GEDSI in the energy sector;

54
 iii. Build the capacity of the Ministries and its Agencies as well as Counties in GEDSI;
iv. Mobilize adequate financial resources for implementing specific GEDSI
programmes/projects;
v. Create awareness on GEDSI in energy sector;
vi. Mainstream GEDSI in the Energy monitoring and evaluation framework.
3.14.4 Occupational Safety and Health (OSH)
The laws provide for fair labor practices and the right to a safe and healthy working environment
and protection from hazardous conditions for workers in any industry. The energy sector in
particular the electricity value chain from generation to retailing involves high-risk activities which
require adequate mitigation measures.
To facilitate compliance with OHS requirements, the Government will:
i. Develop energy sector-specific OHS framework to address the unique challenges;
ii. Develop and implement work-life balance programs across the energy sector.

3.15 Research, Development and Innovation

3.15.1 Research Development & Innovation
Research and development in the energy sector is critical in order to optimally harness the vast
resources and advance in the emerging technologies. By promoting technology development and
manufacturing through RDI, the energy sector fosters a collaborative, innovative, and self-
sufficient sector by integrating local technology manufacturing with coordinated research,
knowledge sharing, and robust IP protection frameworks. This aims to lower the cost of electricity
through targeted RDI initiatives that drive local industrialization, enhance the efficiency of energy
production and distribution, and reduce dependency on imported energy technologies.
To address the RDI policy gaps, Government will:

i. Support the development of locally produced energy technologies such as solar panels,
wind turbine parts, geothermal equipment, transmission & distribution equipment clean
cooking equipment, and energy efficiency technologies to drive industrial growth and job
creation;
ii. Prioritize research and innovation to develop cost-effective, locally made energy solutions
and reduce reliance on imports;
iii. Establish platforms to link research with industrial applications and strengthen
collaboration between academia, industry, and research institutions;
iv. Facilitate partnerships to commercialize energy innovations and lower production costs;
v. Provide intellectual property protection and commercialization support to bring local
energy technologies to market.

3.15.2 Human Resource Development and Retention

Availability of a skilled and capable workforce is important to enhance the energy sector growth
in view of new innovations in the sector. There is need to continually improve personnel skills and

55
institutional capacities through targeted training, skill development, and knowledge enhancement.
Aligning training and development programs will ensure the workforce is equipped to handle
emerging energy technologies and challenges, reduce skills gap by creating strategic workforce.
Planning accordingly minimizes talent shortages, improve talent retention and enhance knowledge
management systems, employee satisfaction and institutional memory.
To establish and retain a skilled workforce for the long-term growth of the energy sector, the
Government will;
i. Establish a centralized framework to promote inter-institutional collaboration for skill and
knowledge development in the energy sector;
ii. Establishment of a knowledge management framework and human resource retention plan
in the energy sector;
iii. Promote recognition and accreditation of novel and innovative courses by professional
bodies to support the adoption of new technologies and approaches;
iv. Foster linkages and partnerships between energy sector entities, academia, and research
institutions to promote knowledge sharing for capacity building.
3.15.3 Cyber Security, ICT and Artificial Intelligence
3.15.3.1 Cybersecurity and Data Protection
The energy sector is reliant on digital systems and interconnected technologies to drive operational
efficiency, reliability, and innovation. However, this digital transformation also exposes the sector
to evolving cybersecurity threats that could compromise critical infrastructure, disrupt energy
services, and expose sensitive data.
3.15.3.2 Artificial Intelligence
AI would be applied in energy systems to optimize energy production, consumption, and grid
management by analyzing vast amounts of data to predict demand, forecast renewable energy
generation, identify potential issues, and improve overall efficiency, particularly in areas like smart
grids, demand response, and predictive maintenance, ultimately contributing to a more sustainable
energy future. AI will be applied in prioritizing the optimization of energy production, distribution,
and consumption while ensuring grid stability, sustainability, and consumer protection through
robust regulatory frameworks and collaborative stakeholder engagement.

Recognizing these risks, the Government will;

i. Establish a comprehensive framework for coordinating cybersecurity and data protection
measures, ensuring seamless integration across the energy sector;
ii. Enhance capacity-building initiatives and allocate adequate resources to effectively
implement and maintain cybersecurity measures across all institutions in the sector;
iii. Strengthen collaboration among energy sector institutions to develop and implement robust
business continuity and crisis management frameworks;
iv. Strengthen collaboration with regional and international entities to address cross-border
cyber threats targeting energy infrastructure;
v. Adopt AI technologies in management of energy sector systems.

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57
CHAPTER FOUR: FRAMEWORK FOR IMPLEMENTING ENERGY POLICY

4 Overview
This section provides coordination and administration mechanisms that specifies all institutions
and their respective functions in this Policy implementation. It highlights institution, legal and
regulatory reforms that will be undertaken for successful implementation of the Policy. The section
will also describe the sources of funds to cater for the Policy activities and actions.

4.1 Coordination Framework and Administrative Mechanisms

The implementation of the NEP will adopt a coordinated, multi-sectoral approach, integrating
efforts across government agencies, private sector stakeholders, energy sector associations,
development partners, civil society organizations and other key sector actors. MoEP will provide
leadership in coordinating sector operations and ensuring the effective implementation of the
Policy objectives.

Table 1. presents an overview of the various institutions involved in the energy sector, detailing
their roles and contributions toward achieving the Policy’s goals.

Table 1. Functions of Institutions in Implementation of the Policy

No. INSTITUTIONS FUCTIONS OF INSTITUTIONS
1. Ministry of Energy and Petroleum i. Coordinate the following in the energy sector:
• Policy and regulation development and management.
• Sector resource mobilization and capacity building.
• Establishment of national, regional and international
partnerships.
• Research, innovation and knowledge dissemination.
• Coordinate and oversee integrated energy planning.
ii. Oversight all energy sector entities and programmes.
iii. Undertake oversight and implementation of the following
functions in the sector:
• National energy policy development and management;
• Thermal power development;
• Rural electrification programme;
• Energy regulation, security and conservation;
• Hydropower development;
• Geothermal exploration and development; and
• Promotion of renewable energy.

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No. INSTITUTIONS FUCTIONS OF INSTITUTIONS
2. Rural Electrification and i. Oversee the implementation of the Rural Electrification
Renewable Energy Corporation Programme.
(REREC)
ii. Manage the Rural Electrification Programme Fund.
iii. Develop and update the rural electrification master plans in
consultation with County Governments.
iv. Support the establishment of Energy Centres in the counties.
v. Undertake feasibility studies and maintain data for renewable
energy resources.
vi. Develop, promote and manage, the research and development
and use of renewable energy and technologies (excluding
geothermal).
vii. Promote the development of appropriate local capacity for the
manufacture, installation, maintenance and operation of
renewable technologies.

3. Geothermal Development i. Undertake geothermal resource development and management

Company (GDC) of steam fields.
ii. Promote and develop direct uses of geothermal resources.
iii. Develop human capacity for geothermal development.
iv. Support Government in resource mobilization for geothermal
development.
v. Facilitate private sector entry by contracting geothermal
resources and services to power producers and other users.
vi. Early power generation through installation of well head
generating units.
4. Kenya Electricity Transmission i. To plan, design, construct, operate and maintain the national
Company Limited (KETRACO) high voltage electricity transmission grid and regional power
interconnectors.
ii. Facilitating national and regional power trading.
iii. To be the System Operator.

5. Kenya Electricity Generating To generate electricity by developing, managing, and operating

Company (KenGen) power plants.
6. Kenya Power and Lighting i. Plan for sufficient electricity generation and transmission
Company (KPLC) capacity to meet demand.
ii. Build and maintain the power distribution and transmission
network.
iii. Retail electricity to its customers.
iv. Purchase of retail, bulk electricity from licensed generators.

59
No. INSTITUTIONS FUCTIONS OF INSTITUTIONS

7. Energy Petroleum and i. Regulate the generation, importation, exportation, transmission,

Regulatory Authority (EPRA) distribution, supply, and use of electrical energy except for
licensing of nuclear facilities.
ii. Regulate importation, refining, exportation, transportation,
storage and sale of petroleum and petroleum products.
iii. Set, review and approve electricity and petroleum tariffs.
iv. Monitor the conditions of contractors’ operations and their trade
practices in consultation with the relevant agencies.
v. Protect consumer, investor and other stakeholder interests.
vi. Work with the relevant statutory authorities to formulate,
enforce and review environmental, health, safety and quality
standards.
vii. Collect and maintain energy and petroleum data.
viii. Ensure that only energy efficient and cost-effective appliances
and equipment are imported into the country in collaboration
with relevant agencies.

8. Nuclear Power and Energy i. Lead Kenya's nuclear energy programme implementation.
Agency (NuPEA) ii. Promote nuclear electricity generation development.
iii. Undertake research, development and dissemination activities
in the energy and nuclear power sector.
iv. Strengthen human and institutional capacity in the sector.
9. Energy and Petroleum Tribunal Adjudicate and arbitrate disputes referred to it in the energy and
petroleum sector.
10. NEMA i. To exercise general supervision and co-ordination over all
matters relating to the environment.
ii. Monitor and enforce compliance of environmental regulations.
iii. Facilitate carbon trading and financing.
11. County Governments i. County energy planning.
ii. Develop County energy policies and regulations.
iii. Undertaking county energy functions in accordance with the
laws and constitution.
12. Parliament i. Legislative oversight, representation and enactment of laws and
regulations for the sector.
ii. Approval and appropriation of the national energy sector
budget.
13. Judiciary Resolution of disputes.

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No. INSTITUTIONS FUCTIONS OF INSTITUTIONS
14. Office of Attorney General and The principal legal adviser to the Government on all legal matters.
Department of Justice
15. National Treasury and Economic i. Resource mobilization and budgetary allocation.
Planning ii. National planning and project monitoring and evaluation
iii. Approval of programmes and projects.
iv. Policy formulation and management of Government financial,
accounting and public procurement and asset disposal
standards.
16. Other Government Institutions i. Collaboration in policy formulation and implementation.
and Agencies ii. Implementation of crosscutting projects and programmes
according to their mandates.
17. Research and academic i. Research, development, innovation and strategic collaborations
institutions and partnerships.
ii. Training and capacity building.
18. Media Dissemination of information.
19. Development Partners i. Provide financial resources through technical assistance, grants,
guarantees, facilities, loans, and innovative financing
mechanisms.
ii. Enhance technical and institutional capacities.
iii. Facilitation of regional and international partnerships.
20. Private Sector i. Mobilize capital for energy infrastructure development.
ii. Develop and apply innovative technologies to improve energy
sector services.
iii. Collaborate with the Government to implement energy projects
and programmes.
iv. Participate in the development and growth of various aspects of
the energy sector value chain; generation, transmission,
distribution and consumption.
21. Civil Society Organizations i. Influence the development and implementation of energy
policies through advocacy to ensure inclusivity, sustainability,
local content and responsiveness to community needs.
ii. Facilitate community participation in energy sector matters,
projects and programmes.
iii. Monitor energy sector activities to promote transparency and
good governance.
22. Other players/Community Participation in policy formulation and implementation.
iv. Support sector initiatives.

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4.2 Legal and Regulatory Framework
The Energy Act, 2019 and its attendant regulations provides a legal and regulatory framework that
guides the energy Sector. The State Department for Energy will review the Energy Act, 2019 to
align with the Reviewed Energy Policy.

4.3 Funding Arrangements

The financial resources required to implement the policy activities and actions will be sourced
from the Government, development partners, private sector, civil society and other funding
agencies. Resource mobilization will also entail leveraging on PPPs.
MoEP together with National Treasury will operationalize the CEF in order to mobilize additional
resources for the sector.

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CHAPTER FIVE: MONITORING, EVALUATION, LEARNING AND REPORTING

5 Overview
This section explains how the policy strategies and actions will be monitored and evaluated
highlighting the data sources, timeframe for implementation of the identified strategies and actions
and who is responsible for tracking the implementation of the Policy actions. It will also define
the reporting channels within the organizations, dissemination of M&E results as well as the
feedback mechanism from the public on the Policy implementation.

Effective implementation of this Policy requires establishment of a strong M&E Framework. The
framework will ensure that the implementation of this Policy is undertaken according to the set
budget/cost, time, and scope. It will also specify the indicators and their definition, baseline, target,
data source, frequency and responsibility for data collection. M&E will provide a core set of tools
that stakeholders will use to verify and improve the relevance, quality, efficiency, effectiveness
impact and sustainability of this Policy. M&E will help in improving Policy design and
implementation, as well as in promoting accountability and dialogue among the Policy makers and
stakeholders.

5.1 Monitoring
Monitoring will be a continuous function entailing systematic collection and analysis of data on
the specified indicators to establish the progress on achievement of the set goals and objectives
outlined in this Policy. Monitoring reports will be prepared quarterly and annually to highlight the
extent of progress with the set Policy goals and objectives as well as document the challenges,
recommendations and lessons learnt. MoEP will coordinate the monitoring of implementation of
this Policy.

5.2 Evaluation
Evaluation will involve collection of data and evidence on Policy to determine whether the Policy
goals have been achieved and to inform the review or relevance of continual implementation of
the Policy. Mid-term and End term evaluation will be done in a systematic and objective process
to assess the level and extent of achievement of the set goals and objectives. This will provide an
opportunity to ascertain if the interventions are coherent with the set goals and objectives and are
implemented in an efficient manner. It will also assist in drawing conclusions, interrogating lessons
learnt and building a knowledge base to inform future policy and decision making.

5.3 Risk Management

The process will involve categorization and prioritization of the risks based on the likelihood of
occurrence and expected impact with suggested actions for mitigation. The risk matrix is
highlighted in table 2.

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Table 2. Risk Management Matrix

Risk Impact Likelihood Mitigation

Change in global market dynamics High High Enhance supply chain resilience frameworks
that change supply and demand for all players in the Country’s energy sector.
dynamics.
Geo-political tensions that affect High High Develop strategic reserves for key
regional integration of power infrastructure.
market and infrastructure.
Change of government priorities High Medium Seeking alternative funding sources from
that invalidate previous resource development partners.
allocations.
Conflicting inter-sectoral policy High Medium Proactive engagement of other sectoral
goals. players to minimize the effect of conflicting
goals.
Inadequate succession planning High Medium Development and adoption of a human
that ensures the availability of a capital succession plan.
robust and vibrant workforce.
Stakeholder resistance that affects High Medium Enhance continuous monitoring and
the implementation of the policy. evaluation of stakeholders’ concerns.
Resource variability due to sudden High Low Development of reliability/ancillary services
changes in weather patterns and to enable the grid to withstand the resulting
events. shocks.

5.4 Reporting
Quarterly and annual progress reports will be prepared based on the National M&E reporting
system. The State Department for Energy will coordinate the reporting and dissemination of the
reports. Dissemination of the reports to stakeholders will be undertaken quarterly on several
platforms including websites and in stakeholder engagement forums at both National and County
levels.

5.5 Learning
Learning will be integrated into every aspect of the Policy design and implementation in order to
create a culture of learning. The information generated from M&E will be analyzed and applied
towards the achievement of the set Policy goals and objectives. Learning will provide information
on what worked and what needs adjustment during the implementation process to improve on the
subsequent processes to enhance effectiveness. This will involve identification, documentation and
dissemination of best practices for replication and scaling up.

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5.6 Policy Review
This Policy will be reviewed after every five years or any such other period as may be determined
by MoEP. Policy review will be prompted by clear indication that the Policy is not meeting its
intended objectives, is misaligned with current realities, or needs to adapt to new circumstances.

65
 ANNEXES
IMPLEMENTATION PLAN

1. Electricity Access

Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources Lead Support
(Ksh.
Million)
Policy Goal/Objective: Achieve universal electricity and clean cooking access by 2030.
Statement 1: To ensure all Kenyans have access to reliable, quality and sustainable electricity.
i. Develop and implement the National Number of 2025 50 • GoK • SDE • All SAGAs in
Least Cost Electrification Electrification connections made - • Development MoEP
Strategy for universal access to Strategy. every year. 2034 Partners • Private Sector
electricity.

ii. Finalize the regulatory Mini grid Licensed mini grids 1 20 • GoK • EPRA • AG Office
framework for development Regulations. plants developed. year • Development • SDE • Kenya Power
and operation of mini grids and Partners • REREC
offgrid solutions that support • Private Sector
innovative business models.

iii. Develop innovative pricing Innovative pricing Number of 2 10 • GoK • SDE • National
models to make connections models. connections made years • Development Treasury
and electricity tariffs more from low income Partners • EPRA
earners. • KPLC
• REREC

66
 affordable for low income • Private Sector
earners.
iv. Collaborate and partner with Collaboration Amount of funding 2025 5 • GoK • SDE • EPRA
development partners and other /partnership available for - • Development • National • Kenya Power
financial institutions for frameworks electrification. 2034 Partners Treasury • REREC
electrification funding.
partners. • Private Sector

v. Modernize energy Modern Number of new 2025 1000 • GoK • SDE • EPRA
infrastructure invest in infrastructure. power plants, mini - • Development • National • KPLC
renewable energy and grids, substations and 2034 Partners Treasury • REREC
implement smart technologies length of • KETRACO
to improve reliability. transmission and • Private Sector
distribution lines
constructed.

2. Hydro Power

Policy Statement Expected Key Time Estimated Funding Responsibility

Output Performance Frame Cost (Ksh. Sources Lead Support
Indicators Million)
Policy Goal/Objective: Promote renewable energy resource development and utilization.

67
Statement 1: To promote and harness the hydro resources towards enhancing the generation mix.
i. Streamline & strengthen An interagency Time taken to process, 2025- • GOK • SDE • KenGen
inter-agency working approval and develop 2034 • Development • KPLC
collaboration for hydro framework. the hydro projects. Partners • EPRA
project development. • SDW
• SDECC
ii. Develop and implement Climate change Number of restored 1 year • GOK • SDE • KenGen
mechanisms to mitigate mitigation and catchment and • Development • KPLC
the adverse effects of catchment increased water flow Partners • EPRA
climate change and restoration to the reservoirs. • SDW
enhance restoration of framework. • SDECC
catchment areas.
iii. Provide adequate Resources Number of 2025- • GoK • SDE • KenGen
resources and available for hydropower plants 2034 • Development • National Treasury • Private
mechanisms for the development of developed. Partners Sector
acceleration of
hydropower • Private sector
plants.
hydropower
development, mitigate
environmental and social
impacts.
iv. Work with other Levies/charges Number of levies 1 Year • GoK • SDE • KenGen
Government agencies to imposed harmonized. • Development • National Treasury • KPLC
streamline levies following Partners • EPRA
imposed on hydropower. consultations. • Private sector • SDW
• SDECC

3. Geothermal Power

Policy Statement Expected Key Performance Indicators Time Estimated Funding Responsibility
Output Frame Cost(Ksh. Sources
Million)

68
 Lead Support
Policy Goal/Objective: Promote renewable energy resource development and utilization.
Statement 1 : To accelerate the development of geothermal resources.
Enhance the legal and New geothermal Number of geothermal 3 years 100 • GoK • SDE • GDC
i. regulatory framework for regulations. regulations developed. • Developmen • EPRA
enforcement of the t partners • KenGen
geothermal resource Number of new concessions • Development
licensing and compliance. allocated. partners
Leverage on the local Institutional Published institutional capacity 2 years 30 • GoK • SDE • GDC
ii. expertise and capacity to capacity engagement & utilization • Developmen • EPRA
accelerate geothermal engagement & framework. t partners • KenGen
resources development and utilization • Development
ensure energy security. framework. partners
Number of experts from
geothermal institutions actively
engaged in exploitation of green
geothermal fields.
Incentivize local National Published national geothermal 2025 100 • GoK • SDE • GDC
iii. innovation in geothermal geothermal industrialization & innovation • Developmen • EPRA
technologies and solutions. industrialization strategy. t partners • KenGen
& innovation
strategy.
Increase in % of geothermal
research funding into
geothermal training centres.

Number of tax breaks/

grants/subsidies provided for
local geothermal manufacturing.

69
iv. Develop and operationalise Geothermal Publishing of the national 2 years 50 • GoK • SDE • GDC,
the national geothermal development geothermal development • Developmen • EPRA
development strategy. strategy. strategy. t partners • KenGen
Number of months taken to
operationalize the geothermal
development strategy.
Number regulations developed
to operationalise the geothermal
development strategy.
v. Establish a legal and Regional Number of geothermal bilateral 3 years 50 • GoK • SDE • GDC
regulatory framework to geothermal agreements in the region. • Developmen • EPRA
enable the geothermal institutional Number of geothermal projects t partners • KenGen
public institutions to investment &
undertaken in the region.
develop, invest and own governance
geothermal plants in the regulations.
region.

4. Variable Renewable Energy (Wind and Solar)

Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Sources Lead Support
Cost(Ksh.
Million)
Policy Goal/Objective: Promote renewable energy resource development and utilization.
Statement 1: To accelerate the development of variable renewable energy.
i. Develop and implement Investment in Number of wind and 2025- 50 • GOK • SDE • Kengen
mechanisms to support wind and solar solar regulations and 2024 • Developme • KETRAC
solar & wind integration. plants. guidelines nt Patners O
established. • Private • KPLC
Sector • EPRA

70
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Sources Lead Support
Cost(Ksh.
Million)
ii Require all new VRE Solar/wind Number of wind and 5 years 5000 • GOK • SDE • KPLC
power plants to have an projects with solar power plants • Developme • KenGen
embedded ESS to embedded ESS. with embedded ESS. nt Patners
improve dispatch-ability • Private
Sector
of their electricity
output.
iii Establish an enabling Improved Number of local 5 years 500 • GoK • SDE • KPLC
environment to spur environment for manufacturing hubs • Developme • KETRACO
local manufacturing local for solar/wind nt Partners • KenGen
hubs to reduce import manufacturers. equipment • KAM
reliance. established.
Iv Establish and centralise A central data A centralised data 2 years 100 • GoK • SDE • SAGAs in MoEP
a data management management management • Developme • Private sector
repository for VRE repository. repository nt Partners • Development
resources to ease established. partners
stakeholders' and
investors’ access.
iv. Revise the FiT Policy Revised FiT Number of solar and 1 Year 100 • SDE • The National
and operationalise the Policy and wind projects • Private Treasury
Renewable Energy Renewable Energy procured under the Sector • EPRA
Auction Policy to Auction Policy. Renewable Energy • KPLC
improve VRE’s Auction Policy. • KETRACO
competitiveness.

5. Nuclear Energy

71
Policy Statement Expected Output Key Performance Time Estimat Funding Sources Responsibility
Indicators Frame ed Cost Lead Support
Ksh.
Million)
Policy Goal/Objective: Achieve universal electricity and clean cooking access by 2030.

Statement 1: Promote development and maintenance of nuclear energy programme.

i. Establish governmental Nuclear strategy. Nuclear development 2025 - 400 • GoK • SDE • NuPEA
strategy, legal and Nuclear regulations. & financing strategy 2035 • Development • KNRA
regulatory frameworks for Financing and established. partners
resourcing strategy.
a safe and sustainable
Regulations
nuclear power developed.
programme.
ii. Establish a nuclear power Nuclear own operating Nuclear operator 2 years 100 • GoK • SDE • NuPEA
plant owner and operator company. established.
to initiate construction of
a nuclear power plant.
iii. Capacity development Financing strategy Human resource 2025 - 800 • GoK • SDE • SAGAs in
and resourcing for trained nuclear allocation & 2034 • Development • NuPEA MoEP
sustainable nuclear professionals. optimization. partners • KNRA
infrastructure • MoE
Optimal placement of Number of local
development. nuclear experts. nuclear experts.

iv. Enhance
i public awareness Stakeholder Public campaigns 2025 – 800 • GoK • NUPEA • SAGAs in
campaigns on the safety engagement.
v and sensitization 2035 • Development • SDE MoEP
. benefits of nuclear
and forums undertaken. partners • CoG
energy.
Public awareness. • Private Sector • Developm
Stakeholder • Non-State ent
engagement strategy actors Partners
developed.

72
Policy Statement Expected Output Key Performance Time Estimat Funding Sources Responsibility
Indicators Frame ed Cost Lead Support
Ksh.
Million)
• Private
Sector
• Non-State
actors
• Local
Communit
ies
v. Leverage the latest nuclear Feasibility studies. Feasibility evaluation 2025 – 800 • GoK • NuPEA • SAGAs in
power technologies, such undertaken. 2035 • Development • SDE MoEP
as small modular reactors partners • County • CoG
scalable to Kenya’s
Modular reactors • Private Sector Governments • Developm
current grid size.
developed. • Non-State ent
actors Partners
• Private
sector

6. Electricity Transmission
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources Lead Support
(Ksh.
Million)
Policy Goal/Objective: Develop and modernize energy infrastructure.

Statement 1: Facilitate development and extension of the electricity transmission system in the country.

73
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources Lead Support
(Ksh.
Million)
i. Expand, strengthen and Electricity Length of 2025- 700,000 • GoK • KETRACO • MOEP
modernise the transmission transmission transmission lines 2034 • Developmen • SAGAs
network to foster grid stability, infrastructure developed. t partners in MoEP
resilience and reliability. developed & Transformation • Private • National
strengthened capacity (MVA) sector Treasury
developed. • CoG
• MLPP
• MINGC
ii. Mobilize adequate funding for Financial resources Amount mobilized 2025- 750,000 • GoK • KETRACO • MOEP
transmission infrastructure mobilized. through exchequer, 2034 • Developmen • SAGAs
development, modernization, private sector and t partners in MoEP
operation and maintenance. internal revenue. • Private • National
sector Treasury
• CoG
• MLPP
• MINGC
iii. Enhance local expertise in Transmission network Availability (%) of 2025- 100,000 • GoK • KETRACO • MOEP
transmission infrastructure effectively and transmission 2034 • Developmen • SAGAs
operation and maintenance. efficiently operated and infrastructure. t partners in MoEP
maintained. • Private • National
sector Treasury
• CoG
• MLPP
• MINGC
iv. Facilitate timely and cost- Land and wayleaves Land and 2025- 50,000 • GoK • KETRACO • MOEP
effective acquisition and timely acquired prior to wayleaves timely 2034 • Developmen • SAGAs
management of land and project acquired. t partners in MoEP
wayleaves for transmission implementation. • Private • National
sector Treasury

74
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources Lead Support
(Ksh.
Million)
infrastructure and control Land and wayleaves Land and wayleave • CoG
encroachment of wayleaves. effectively and acquisition legal • MLPP
efficiently managed framework. • MINGC
Land and wayleave
acquisition legal
framework developed.
v. Categorize transmission Security and safety of Percentage 3 years 50 • GoK • KETRACO • MOEP
infrastructure as critical the transmission reduction in • Developmen • SAGAs
national assets to enhance infrastructure vandalism t partners in MoEP
safety and security of the enhanced. incidents. • Private • National
infrastructure. Partnerships with sector Treasury
national security • CoG
agencies established • MLPP
Public sensitization • MINGC
programmes
implemented.
vi. Transfer the transmission KPLC transmission The transmission 1 year 10 • GoK • KETRACO • MOEP
assets from KPLC to assets transferred to assets transferred. • Developmen • SAGAs
KETRACO. KETRACO. t partners in MoEP
• Private • National
sector Treasury
• CoG
• MLPP
• MINGC
vii. Fast-track the formulation of Published regulations. Open Access and 1 year 5 • GoK • KETRACO • MOEP
Open Access and Bulk Supply Bulk Supply • Developmen • SAGAs
Regulations. Regulations t partners in MoEP
gazettement. • Private • National
sector Treasury

75
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources Lead Support
(Ksh.
Million)
• CoG
• MLPP
• MINGC

7. Electricity Distribution

Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources
(KSh.
Million)
Lead Support
Policy Goal/Objective: Develop and modernize energy infrastructure.

Statement 1: Facilitate development of the electricity distribution system in the country.

i. Prioritise investments in Facilitate Universal access to 3 years 1000 • GoK • MoEP • National
modernising and development of a electricity. • Development Treasury
expanding the electricity modern electricityIncreased system partners • SAGAs in
distribution infrastructure.
distribution efficiency-reduced • Private Sector MoEP
network. system losses. • Non-State • COG
Increased electricity Actors
demand.
Facilitate private sector
investments in the
distribution system.
ii. Adopt innovative grid Increased system Reduced power losses. 3 years 500 • GoK • MoEP • National
technologies and efficiency. Treasury

76
 advanced metering Growth in electricity • Development • SAGAs in
infrastructure to improve Increased customer demand partners MoEP
operational efficiency. satisfaction. Competitive electricity • Private Sector • COG
tariffs. • Non-State
Actors
iii. Enhance the resilience of Increased power Reduced outages. 5 years 500 • GoK • MoEP • National
the electricity distribution supply reliability Increased electricity • Development Treasury
network. demand. partners • SAGAs in
• Private Sector MoEP
• Non-State • COG
Actors
iv. Promote decentralised Electricity access. Increased access to 203 500 • GoK • MoEP • National
systems such as mini-grids electricity. 0 • Development Treasury
and solar home systems. Reduced fossil fuel partners • SAGAs in
usage and pass through • Private Sector MoEP
charges. • Non-State • COG
Actors
v. Facilitate open access to Enhanced system Electricity retail market. 2029 100 • GoK • MoEP • National
the distribution network to efficiency in power Competitive electricity • Development Treasury
optimise network generation, tariffs. partners • SAGAs in
utilization. distribution and Increased distribution • Private Sector MoEP
retail. efficiency. • Non-State • COG
Increased private sector Actors
investment.

8. Electricity Retail
Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Fram d Cost
e

77
 (Ksh.
Million)
Lead Support

Policy Goal/Objective 3: Achieve universal electricity and clean cooking access by 2030.

Statement 1: Facilitate establishment of downstream ESCOs and a competitive electricity retail market in Kenya.

i. Implement policies Enabling environment Number of regulations 3 years 100 • GoK • SDE • SAGAs in
frameworks to facilitate for establishment of a and policies • Development • County MoEP
competitive retail of competitive electricity established. partners Governme • CoG
electricity models with
retail market. • Private Sector nts
enhanced participation of • Non-State
actors
private sector players.
ii. Encourage structuring of Flexible power PPAs templates 2 10 • GoK • SDE • SAGAs in
PPAs that allow purchase contracts with developed. • Development MoEP
generators to retail power direct retail and power partners • CoG
to customers. wheeling. • Private Sector
• Non-State
Actors
iii. Facilitate development of New investment in New generation 2025- 100 • GoK • SDE • SAGAs in
greenfield projects that renewable energy projects developed for 2034 • Development MoEP
support direct retailing generation for direct direct energy retail to partners • COG
and energy trade in local retail and energy customers. • Private Sector
and regional power market. • Non-State
markets. Actors
iv. Pursue public-private Establishment of Number of bulk supply 3 • GoK • SDE • SAGAs in
partnerships for energy ESCOs at the bottom of contracts. years 100 • Development MoEP
bulk sale agreements with the power supply partners • COG
the national off-taker and business. • Private Sector
downstream retailing by

78
 private energy supply • Non-State
companies (ESCOs). Actors

v. Facilitate development Establishment of a Local electricity retail 2027 200 • GoK • SDE • SAGAs in
and operationalization of competitive electricity market. • Development MoEP
a local energy market. retail market. partners • CoG
• Private Sector
• Non-State
Actors

9. System Operations

Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Frame d Cost
(Ksh. Lead Support
Million)

Policy Goal/Objective: Encourage local and regional energy trade.

Statement 1: Maintain a stable and reliable power grid by controlling the flow of electricity across the transmission system.

i. Develop and modernize National System NSCC 4 years 11,500 • National • KETRACO • National
System Operation Control Centre Treasury Treasury
infrastructure. (NSCC) developed. • Development • MoEP
partners • KPLC
ii. Establish Reliability & ancillary Regulations 2 years 100 • GoK • EPRA • SAGAs in
reliability/ancillary services established. established. • Development MoEP
services to regulate the partners • MoEP
system and control
intermittency from VRE
generation.

79
Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Frame d Cost
(Ksh. Lead Support
Million)

iii. Facilitate investment in the Modern reliable Reduced system losses. 2025- 50000 • GoK • MoEP • SAGAs in
transmission grid transmission grid. 2034 • Development MoEP
infrastructure to minimise partners • KETRACO
system losses and enhance • Private sector
the quality and reliability
of services.

iv. Establish human capital Skilled workforce in Number of experts 2025- 100 • GoK • KETRACO • MoEP
incentives including system operations. skilled in system 2034 • Development • National
specialized training operations. partners Treasury
programmes to improve • Private sector
technical skills and ensure
a sustainable workforce
for system operations.

10. Power Trade

Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost Sources
Lead Support

Policy Goal/Objective: Encourage local and regional energy trade.

Statement 1: To promote regional sale of electricity towards optimizing costs and integration of variable renewable energy.

80
Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost Sources
Lead Support

i. Develop and gradually Trading rules, Trading rules, 2 years 200 • GoK • EPRA • MOEP
implement power market regulations and regulations and • EPRA • SAGAs in
design and structure to guidelines developed. guidelines. • Development MoEP
Power market Power market partners
guide market operations.
institutional framework institutional • Private
formulated. framework. sector
Open Access Market Open access market
Structure developed structure.
and adopted.
ii. Establish programmes to Power market % Power market staff 2 years 50 • GoK • MoEP • EPRA
build and enhance market expertise trained. trained. • Development • KPLC
operations technical partners • KETRACO
capacity in terms of skills • Private
and human resources. sector

iii. Prioritise and develop Power interconnectors Length in KMs of 2025- 5000 • GoK • MoEP • MOEP
power infrastructure to developed and Power interconnectors 2034 • Development • KETRACO
promote power market modernized. developed. partners • EPRA
Power interconnectors • Private • KPLC
operations and regional
operated and sector
integration. maintained.

11. Captive Power and Net Metering

Policy Expected Output Key Performance Time Estimated Funding Responsibility

Statement Indicators Frame Cost Sources
Lead Support
(Ksh.
Millions)

81
 Policy Goal/Objective: Promote renewable energy resource development and utilization.
Statement 1: To enable prosumers earn credits for excess energy they contribute to the grid and reduce costs on battery storage.

i. Establish guidelines for Guidelines for Guidelines on captive 1 year 20 • GoK • EPRA • KPLC
the integration, integration, operation, power established. • Development • SDE • KETRACO
operation, and and monitoring of Partners
monitoring of captive captive power plants.
power plants to ensure
safe and efficient grid
interactions.

ii. Develop compensation Compensation Number of power 1 year 30 • GoK • EPRA • KPLC
mechanisms for mechanisms for plants compensating • Development • SDE • KETRACO
ancillary services and ancillary services. the offtaker for Partners
other grid services ancillary services and
provided to grid-tied other grid services
captive power provided.
developers.
iii. Develop and implement Technical standards and Technical report on 3 50 • GoK • EPRA • KPLC
technical standards and operational protocols grid stability and years • Development • SDE • KETRACO
operational protocols to developed and safety operations of Partners
mitigate risks to grid implemented. captive plant.
stability and safety from
captive plant
operations.

12. Energy Storage Systems

Policy Statement Expected Output Responsibility

82
 Key Performance Time Estimat Funding Lead Support
Indicators Frame ed Cost Sources
(Ksh.
Million)
Policy Goal/Objective: Promote renewable energy resource development and utilization.
Statement 1: To effectively balance the supply and demand improving power quality and reliability.

i. Develop innovative funding Financing Models. Number of ESS developed. 5 years 10 • GoK • SDE • EPRA
models with for financing ESS • Developm • KPLC
capital cost. ent • KETRACO
Partners • KenGen
ii. Establish a regulatory and Regulations/ Regulations/ guidelines for 2 years 50 • GoK • SDE • EPRA
institutional frameworks and guidelines for energy energy storage developed. • Developm • KPLC
guidelines for energy storage storage. ent • KETRACO
development. Partners • KenGen
• Private
sector
iii. Facilitate building local Capacity building and Number of Local Experts 2 years 100 • GoK • State • EPRA
expertise through international training of local trained. • Developm Departm • Kenya
collaboration on ESS. experts. ent ent Power
Partners • KETRACO
• KenGen
• Private
sector
iv. Establish a framework for the A framework for Number of ESS developed 2 years 50 • GoK • SDE • KPLC
participation of the private participation on and implemented. • Developm • EPRA • KETRACO
sector in development and development & ent • KenGen
implementation of the ESS. implementation of Partners • Private
ESS. sector

13. Reliability and Ancillary Services

83
Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost Sources
(Ksh. Lead Support
Million)
Policy Goal/Objective: Develop, modernize and optimize energy infrastructure.
Statement 1: Maintain voltage levels within acceptable limits across the grid.

i. Establish regulatory Regulatory and Regulations and 2 years 50 • GoK • EPRA • KPLC
framework and guidelines for guideline guideline developed. • Development • SDE • KETRACO
reliability/ancillary services framework for ESS. Partners • KenGen
development, integration and • Private sector
compensation in the Kenyan
power system.

ii. Collaborate with regional EAPP electricity Amount of ancillary 3 years 50 • GoK • State • EPRA
countries to harmonise market framework services traded • Development Department • KPLC
ancillary service provision for ancillary between Kenya and Partners • KETRACO
standards and regulations. services. interconnected • KenGen
countries, • Private sector

iii. Invest in training and Training and Number of experts 3 years 100 • GoK • SDE • EPRA
capacity building to equip the capacity building trained. • Development • KPLC
sector’s manpower with forums. Partners • KETRACO
technical skills to manage AS • KenGen
effectively. • Private sector

iv. Establish financing, Financing, Financing, 3 years 50 • GoK • EPRA • KPLC

collaboration and incentive collaboration and collaboration and • Development • SDE • KETRACO
frameworks to enhance AS in incentive incentive framework Partners • KenGen
the Kenyan power system. framework. established. • Private sector

84
 14. Clean Cooking
Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (KSh. Sources
Million)
Lead Support
Policy Goal/Objective: Achieve universal electricity and clean cooking access by 2030.
Policy Statement: Increased access to clean cooking solutions.
i. Enable affirmative action Enhanced coordination A Clean Cooking 2025- 5000 • GOK • SDE • IMC
towards the achievement in implementing the Implementation Unit. 2030 • Developmen • Development
of universal access to universal access to clean Supply & demand side t partners Partners
clean cooking by 2030 cooking goal. incentives. • Climate • Private Sector
through implementation of Supply & demand side Use of carbon credits to Finance • National
the KNCTS and other incentives. finance clean cooking. • Private Treasury
supporting strategies Use of revenues from carbon Sector • MSMEs
while observing the credits to finance clean • Communities
principle of GESI. cooking solutions.
• MECCF
• NEMA
ii. Establish a financing Budgetary allocation for Budget-line for clean cooking 5 years 500 • GOK • SDE • National
mechanism to fast track clean cooking. established. • Developmen Treasury
the implementation of the Clean cooking financing t partners • KFS
clean cooking access goal mechanism established. • Climate • MoE
by 2030. Finance • MoH
• Private • KPS
Sector
iii. Provide legislative and A regulation to promote Institutional transition to 3 years 1000 • GOK • SDE • National
fiscal support to all social the use of clean cooking. clean cooking solutions. • Developmen Treasury
institutions and MSMEs to solutions in all social Regulation and guidelines for t partners • KFS
switch to clean cooking institutions. cleaning cooking. • Climate • MoH
solutions by 2030. A sustainable clean Institutions established as Finance • MoE
hubs for the supply of clean • Private •
cooking fuels and KPS
cooking solutions. Sector •
technologies market. MECCF
• EPRA

85
 Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (KSh. Sources
Million)
Lead Support
Studies and reports published • KPLC
on taxation of clean cooking
solutions.
iv. Support counties to CEPs that incorporate Investment plans for clean 5 years. 340 • GOK • SDE • COG
mainstream clean cooking clean cooking. cooking developed. • Developmen • LCPDP
as part of integrated Coordinated planning Clean cooking factored in t partners Committee
energy planning. for clean cooking INEP. • Climate • CoG
initiatives in the energy. LCPDP and CEP Committee Finance • Development
engagements. • Private Partners
Sector • Private Sector
v. Mainstream cooking Cooking embedded Electricity sector projects 5 years 2000 • GOK • SDE • SAGAs in
within broader energy within electricity access, with cooking components. • Developmen MoEP
sector initiatives, energy efficiency. t partners • COG
specifically electricity Clean cooking aligned to Demand stimulation through • Climate • SDP
access, energy efficiency public health, eCooking. Finance • KFS
and grid strengthening deforestation reduction, The contribution of clean • Private • MECCF
projects. and climate change cooking to the targets for Sector • MoH
objectives. health, environment and
• MECCF
Increased share of LPG, climate change under the • IMC
ecooking, biogas, national obligations.
• SDP
sustainable solid % of LPG, bioethanol
biomass, bioethanol, ecooking biogas sustainable
clean cooking and solid biomass and merging
heating technologies in clean cooking and heating
the cooking energy mix.
technologies in the cooking
fuel mix.
vi. Support the review Reviewed building Enforcement and conformity 5 years 200 • GOK • SDE • IMC
building guidelines and guidelines and codes to the building guidelines. • Developmen • NCA
codes to enable promoting clean t partners • NEMA

86
 Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (KSh. Sources
Million)
Lead Support
construction and cooking environments Number of counties adhering • Climate • COG
retrofitting of buildings to and minimizing HAP. to the guidelines and codes. Finance
create clean cooking • Private
environments and reduce Sector
indoor air pollution.
vii. Establish programmes to Harmonised regulations Number of regulations 1 year 2000 ● GOK SDE ● MECCF
enhance technical capacity to support sustainable harmonized. ● Developmen ● IMC
of relevant agencies to biomass value chains. Number of trained experts t partners ● KFS
develop and enforce MEPS Standards on regulatory aspects. ● Climate ● KEFRI
regulations related to developed. MEPS standards developed. Finance ● NEMA
minimum energy MEPS testing labs MEPS testing lab ● Private ● EPRA
performance standards for established. established. Sector ● KEBS
clean cooking appliances, ● Research
including the Institutions
establishment of testing & Universities
laboratories. • KIRDI
• KWS
viii. Develop fiscal policies Increased volumes and Quotas designated in SEZs 5 years 50 • GOK SDE • MoE
that support local brands of locally for local manufacturing of • Developmen • IMC
manufacturing of clean produced clean cooking clean cooking technologies. t partners • Research
cooking technologies. technologies. • Climate Institutions
% Share of cooking Finance
technologies produced in • Private
Kenya. Sector
ix Enhance public awareness A reviewed BCC Percentage of Kenyans aware 5 years 2500 ● GOK SDE ● Media
. and capacity to accelerate Strategy. of clean cooking. ● Development ● MoI
the uptake of clean partners ● MSMEs
cooking solutions through Percentage of Kenyans ● Climate ● MoH
behavior change. aware of sustainable Finance ● COG

87
 Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (KSh. Sources
Million)
Lead Support
firewood and charcoal Percentage of Kenyans using ● Private ● Social
production and clean cooking solutions. Sector Institutions
processing. ● Communities
Number of operational clean ● MECCF
Percentage conversion to cooking hubs. ● SDI
sustainable biomass ● MoA
Number of national and
solutions. ● Research &
grassroots awareness raising academic
programmes on clean Institutions
cooking. ● CoG
● Local
Communities trained on
Communities
sustainable tree management
for firewood and charcoal
production, circular bio-
economy and recovery
practices.
x. Promote research and A knowledge A knowledge management 5 years 4000 ● GOK ● SDE ● COG
knowledge management management platform for hub for the cooking sector ● Developmen ● Development
for the clean cooking clean cooking. developed. t partners Partners
sector. KPIs for the cooking sector. ● Climate ● Research &
Clean cooking reports A cooking sub-sector Finance academic
mainstreamed into Knowledge Management ● Private institutions
national planning. Committee. Sector ● Private sector
NDC carbon registry for ● Local
Processes and reporting. clean cooking. communities
● IMC

88
 15. Demand Stimulation

Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Frame d Cost
(Kshs. Lead Support
Millions)

Policy Goal/Objective: Promote energy efficiency and conservation.

Statement 1: To promote demand of electricity by households and industries particularly during off peak.

i. Enhance collaboration A collaboration Percentage increase 2 years 50 • GoK • SDE • EPRA

within Government MDAs framework for of demand in the • Development • National • KPLC
and the private sector to promotion of demand national grid. Partners Treasury • KETRACO
encourage demand stimulation activities. • KenGen
stimulation like promotion • MITI
of SEZ.
ii. Invest in grid infrastructure Modern transmission Improved SAIDI & 2025- 1000 • GoK • SDE • EPRA
modernization to increase and distribution CAIDI indicators. 2034 • Development • KPLC
stability and reliability to infrastructure. Partners • KETRACO
support economic activities. • Private Sector • KenGen
iii. Review the Time of Use Reviewed Time of Use Percentage increase 2 years 50 • GoK • EPRA • KPLC
Tariff to reach more Tariff. in the number of • Development • SDE • KETRACO
consumer categories. customers in the Partners • KenGen
Time of Use Tariff. • Private Sector • KAM

89
Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Frame d Cost
(Kshs. Lead Support
Millions)

iv. Conclude electricity market, Electricity market, Number of players 1 year 20 • GoK • EPRA • KPLC
bulk supply and open access bulk supply and open participating in the • Development • SDE • KETRACO
regulations and finalize the access regulations. electricity market, Partners • KenGen
market design to enable bulk supply and open • Private Sector • KAM
energy exchange and access.
competition.

16. Bioenergy for Cooking and Heating

Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources
(Ksh. Lead Support
Million)

Policy Goal/Objective: Achieve universal electricity and clean cooking access by 2030.
Statement 1: To promote the use of bioenergy for cooking and heating.

i. Review the existing Legal, fiscal, regulatory and Regulations 5 years 5 • GOK • SDE • MTI
fiscal, legal, regulatory institutional framework for bioenergy formulated. • Developmen • MECCF
and institutional developed. t partners • SDI
frameworks to promote Legislation for commercial and out- • Climate • MoA
application of biomass, grower schemes for energy. Finance • Civil
biofuels and biogas. Crop cultivation. • Private Society
Sector • SAGAs
in MoeP
• COG

90
ii. Undertake data State of biomass, biofuels and biogas Biomas, biofuels and 5 years 90 • GOK • SDE • MTI
collection, resources established. biogas resource • Developmen • MECCF
comprehensive Sustainable production for bioenergy studies. t partners • SDI
mapping and planning framework. Reports on viability • Climate • MoALD
for biomass, biofuels of SAF’s established. Finance • Research
and biogas. Reports on • Private Institutio
Sustainability Sector ns
framework for • COG
biomass, biofuels and
biogas.
iii. Promote measures to Knowledge management system for Knowledge 5 years 2000 • GOK • SDE • MTI
enhance promotion of biomass, biofuels and biogas resources management • Developmen • MECCF
biomass, biofuels and and programs developed. platform for biomass, t partners • SDI
Research and Development that biofuels and biogas. • Climate • MoALD
biogas value chains
facilitates the exploitation of biomass, Number of incentives Finance • COG
development. biofuels undertaken. established. • Private
Local production of biomass, biofuels Reports of R&D Sector
and biogas enhanced. initiatives.
Consumer and enterprise financing Number of plants
including carbon finance developed. established.
Number of capacity
development
programs.
Amount of finances
assessed by
enterprises.
Number of carbon
projects developed
and implemented.

17. Bioenergy for Transport

91
Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (Ksh. Sources
Million)
Lead Support

Policy Goal/Objective: Promote renewable energy resource development and utilization.

Statement 1: To promote the use of bioenergy for transport.
i. Formulate and implement Blending mandate for Number of blending 2 years 50 • GOK • SDE • MTI
blending mandates for bioethanol and biodiesel mandates formulated. • Developmen • MECCF
bioethanol and biodiesel. developed. Volumes of bioethanol t partners • SDI
Multi-agency team for and biodiesel used for • Climate • MoA
blending established. blending. Finance • COG
Reports of multi- • Private
agency. Sector
ii. Promote local production of Number of enterprises Volumes of biofuels 5 years 1000 • GOK • SDE ● MTI
bioethanol and biodiesel for use and industries established. produced locally. • Developmen ● MECCF
in transport sector. t partners ● SDI
• Climate ● MoA
Finance ● COG
• Private
Sector
18. Cogeneration, Gasification and Waste to Energy
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources
(Ksh.
Million) Lead Support

Policy Goal/Objective: Promote renewable energy resource development and utilization.

Statement 1: Promote cogeneration, gasification and waste to energy technologies.

92
 National Strategy forFormulation of • GoK • SDE • SAGAs in
i. Formulate and Implement Coordinating Cogeneration.National Strategy for 2025- 40000 • Developmen MoEP
National measures for Gasification and WTE Coordinating 2034 t partners • CoG
promoting Cogeneration, Technologies. Cogeneration. • Private • NEMA
Infrastructure forNumber of gasification Sector •
Gasification and WTE Non-State
cogeneration, gasificationand WTE technologies • Non-State
technologies. and WTE developed. developed.
Actors
Actors
A Standardized PPA for Number of Plants on
cogeneration, gasificationcogeneration,
and WTE. gasification and WTE
developed.
A standardized PPA for
cogeneration,
gasification and WTE
in developed.
Capacity building • GoK • SDE • SAGAs in
ii. Capacity building on Capacity Building Program strategy developed. 2025- 150 • Developmen MoEP
Cogeneration, Gasification and and Implementation Number of trainings 2034 t partners • CoG
WTE. Strategy on Cogeneration, contacted. • Private
Number of workforce Sector
gasification and WTE
trained. • Non-State
technologies.
Actors

19. Sustainable Aviation and Marine Fuels

Policy Statement Expected Output Key Performance Time Estimat Funding Sources Responsibility
Indicators Frame ed Cost
(Ksh. Lead Support
Million)
Policy Goal/Objective: Promote renewable energy resource development and utilization.

93
Statement 1: To promote the use of sustainable aviation and marine fuels.
i. Develop a framework for Framework and Number of frameworks 5 years 5 • GOK • SDE ● MTI
oversight and coordination of coordination mechanism established. • Development ● MECCF
SAF and clean marine fuel for SAF and marine fuels Reports of marine fuels. partners ● SDI
established. • Climate ● MoA
production.
Finance ● KCA
• Private Sector ● KPC
● MA
● COG
ii. Facilitate research and SAF and marine Volumes of SAFs and 5 years 100 ● GOK ● SDE ● MTI
development to scale up the local feedstock production Marine fuels produced. ● Development ● MECCF
production and use of biofuels system established. partners ● SDI
Number of refinery and ● Climate ● MoA
and green hydrogen.
blending facilities for Finance ● KCA
SAFs and marine fuels. ● Private Sector ● KPC
● MA
● COG
iii Strengthen international Collaboration framework Number of frameworks. 2030 10 ● GOK ● SDE ● MTI
. partnerships to align with global developed. Number of programs and ● Development ● MECCF
climate goals and technology projects. partners ● SDI
Amount of resource ● Climate ● MoA
advancements.
mobilized. Finance ● KCA
● Private Sector ● KPC
● MA
● COG

20. Diverse and Productive Uses of Energy

94
Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost Lead Support
Policy Goal/Objective: Promote renewable energy resource development and utilization.

Statement 1: Promote diverse and productive uses of energy.

i. Develop and implement PURE strategy Strategies developed. 2 years 22 • GOK • SDE • National
intergovernmental and Inter- Intergovernmental • Development Treasury
inter-sectoral governmental Working Group Partners • KRA
collaborations to Working Group. Established. • Private Sector • KEBS
promote alternative and Fiscal policy to support • Non-State • SAGAs in
productive uses of demand supply side actors MoEP
energy. standards & quality
frameworks for PURE
products developed.
ii. Develop a legal and Geothermal direct Legal & regulatory 2 years 10 • GOK • SDE • KenGen
regulatory framework to applications frameworks developed. • MDAs • GDC
promote the policy & • Development
development and regulations. Partners
investment
in geothermal direct
use applications to
optimize geothermal
resources.

iii. Design and implement Building of Number of professionals 2025 – 30 • GoK • SDE • SAGAs in
capacity building, technical experts. trained. 2034 • Development MoEP
awareness initiatives partners • National
programs targeted at • Private • CoG
relevant stakeholders. Sector

21. Green Hydrogen

95
 Policy Statement Expected Output Key Performance Time Estimate Funding Sources Responsibility
Indicators Frame d Cost
(Ksh.
Million)
Lead Support
Policy Goal: Support green industrialization, environmental & social sustainability.

Statement 1: Establish a competitive green hydrogen industry.

i. Establish a centralized Centralized Centralized Coordination 2025 100 • GoK • SDE • SAGAs
coordination framework to coordination Framework established. • Development in MoEP
support the nascent green framework. Allocated resources, partners • Non-
hydrogen industry by
including funding and • Private Sector State
personnel. Actors
facilitating private & Green Hydrogen Committee
public sector green established.
hydrogen investments, Stakeholder Engagement
regulations, finance and Strategy.
investments. Stakeholder engagement
forums.
ii. Establish Contracts for Financial Contracts for Difference 2025 – 50000 • GoK • SDE • SAGAs
Difference to support mechanisms Frameworks established. 2034 • Development in MoEP
offtake of green hydrogen established. Financial mechanisms partners
and its derivatives by
established to support • Private Sector
research, innovation, and
making it cost project green hydrogen.
competitive. Creation of a market for
green hydrogen and its
derivatives.
iii. Facilitate common Green hydrogen Number of Projects 2025 – 10,000 • GoK • SDE • SAGAs
infrastructure infrastructure completed. 2034 • Development in MoEP
development by funding developed. Funding allocated for partners
the development of
hydrogen infrastructure • Private Sector
projects.

96
 hydrogen transport,
storage, and export
infrastructure to reduce
logistical bottlenecks.
iv. Create opportunities for Skilled personnel for Trainings on green 2025 – 5000 • GoK • SDE • SAGAs
local value creation in the green hydrogen hydrogen. 2034 • Development in MoEP
green hydrogen industry development. Peer to peer learning partners • CoG
through strategic
forums. • Private Sector • Academi
collaboration and capacity
Secondment of officers for • Non-State a
skills development. Actors
building. Public awareness
campaigns.

22. Energy Transition and Climate Change

Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost
Lead Support
(Kshs
Million)

Policy Goal/Objective: Promote renewable energy resource development and utilization.

Statement 1: To promote and streamline adoption of energy transition technologies in Kenya.

i. Develop a regulatory Regulatory Approved Standards & 2 years 50 • GoK • MOEP • EPRA
framework for the adoption framework Regulations for clean • Development
of clean energy governing adoption energy technologies. • partners
technologies. of clean energy Coordination and
technologies collaboration
framework between
adoption.
Government ministries
and other stakeholders.

97
Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost
(Kshs Lead Support
Million)
Approved incentives
for consumers to shift
to clean energy
technologies.
ii. Promote the deployment of Increased Pilot Incentives for use 2 years 50 • GoK • MOEP • MDAs
flexible technologies in deployment of the of flexible technologies • Development • EPRA
industrial and power flexible in Industrial sector. partners
sectors to reduce carbon technologies in Framework the
emissions. industrial and power adoption and
integration of energy
sector.
storage.
Innovative service
delivery models to
catalyze investment in
flexible energy
solutions.
iii. Mainstream energy Integrated energy An approved 2 years 50 • GoK • MOEP • EPRA
transition in energy plan that includes all Integrated Energy Plan • Development • SAGAs
planning with a transition value with transition value partners • MDCAs
development framework chains. chains. • Private Sector • Private
around new value chains. Technical capacity Sector
development for
adoption of emerging
low-carbon
technologies.

23. Critical Energy Minerals

98
Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost
Lead Support

Policy Goal/Objective: Support green industrialization, environmental and social sustainability.

Statement 1: Accelerate the exploitation of critical minerals to foster industrial growth and accelerate adoption of renewable energy emerging
technologies.
i. Develop a regulatory Regulatory framework Complete critical 2026 50 • GoK • MoEP • MMBEMA
framework to integrate integrating critical minerals integration • Development • SAGAs in
critical mineral mineral exploitation with with renewable energy partners MoEP
regulations developed. • KCM
exploitation with renewable energy
Rate of • NEMA
renewable energy development. operationalization of
development. the developed
regulations.
ii. Develop and implement Regulations to spur Number of incentives 2 years 50 • GoK • MoEP • MMBEMA
regulations to spur investment in local put in place to spur • Development • SAGAs in
investment in local processing. local processing. Partners MoEP
Number of local • KCM
processing.
processing setups. • NEMA
iii. Strengthen government A framework for The number of local 2027 100 • GoK • MoEP • MMBEMA
institutions to explore strengthening institutions involved in • Development • SAGAs in
critical minerals and government institutions. exploration activities. Partners MoEP
A centralised mineral • KCM
provide data to boost
resource data • NEMA
investor confidence. management system
setup.
Availability of data on
critical minerals.
iv. Develop and implement a Critical mineral Critical minerals 2026 30 • GoK • MoEP • MMBEMA
critical mineral exploitation strategy to strategy developed. • Development • SAGAs in
exploitation strategy to guiding targeted and Partners MoEP

99
 guide targeted and deliberate exploitation of Regulations on critical • KCM
deliberate exploitation of critical minerals. minerals. • NEMA
these minerals.

24. Natural Gas

Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost Lead Support
Policy Goal/Objective: Develop and modernize energy infrastructure.
Statement 1: Develop and implement natural gas infrastructure.

i. Strengthen the legal and Revised oil and gas Natural gas legal 2 years 100 • GoK • MoEP • EPRA
regulatory framework for legal & regulatory framework • Development • NOCK
the oil and gas sector to framework. developed. partners • KPLC
include the natural gas
industry.

ii. Facilitate development Natural gas facility. Gas handling 5 years 10,000 • GoK • MoEP • SAGAs in
and utilization of natural Locally produced facility Developed • Development MoEP
gas and associated gas. Local exploration partners
infrastructure. LNG power plants. and development. • Private sector
New gas powered
plants developed.
Thermal power
plants converted to
LNG.

25. Energy Efficiency and Conservation

100
Policy Statement Expected Output Key Performance Indicators Time Estimate Funding Responsibility
Frame d Cost Sources Lead Support
(Ksh.
Millions)
Policy Goal/Objective: To promote energy efficiency and conservation.
Statement 1: Promote practices and technologies that use less energy to perform the similar roles.
i. To enhance Establishment of National energy efficiency 2025- 20 • GoK • MoEP • National
coordination and Energy efficiency coordination committee 2034 • Developme Treasury
resource mobilization and conservation established. nt partners • SAGAs in
of energy efficiency coordination and Resource mobilization • Private MoEP
and conservation resource framework developed. Sector
programs. mobilization Energy efficiency and
framework. conservation investment
prospectus developed.
ii. To enhance Enhanced MEPs for household, buildings, 2025- 500 • GoK • MoEP • SAGAs in
implementation of implementation of vehicles electrical appliances 2034 • Developme • EPRA MoEP
energy efficiency and EE&C programs in developed and gazette. nt partners • CoG
conservation economic sectors. Testing labs for appliances • Private
programs in key built. sector
economic sectors. Number of energy audits
conducted in designated
facilities and public buildings.
Number of trained energy
efficiency professionals
Number of ESCOS created.
iii. Enhance knowledge Improved Number of EE&C seminars. 2025- 500 • GoK • MoEP • SAGAs in
and awareness on dissemination of Number of energy auditing 2034 • Developme MoEP
energy efficiency and technical and guide books. nt partners • CoG
conservation. general knowledge Number of discussion/working • Private
on EE&C. papers published sector
Local curriculum for energy
efficiency.

101
Policy Statement Expected Output Key Performance Indicators Time Estimate Funding Responsibility
Frame d Cost Sources Lead Support
(Ksh.
Millions)
iv. Promote adoption of Increased electric/ Share of electric/ hybrid 2025- 900 • GoK • MoEP • Treasury
electric vehicles. hybrid vehicles vehicles in total vehicles 2034 • Developme • MTI
imported to Kenya. imported into Kenya. nt partners • SAGAs in
Charging stations Number of charging stations in MoEP
constructed. the country.
v. Mainstream EE&C in EE&C incorporated Curriculum on EE&C 5 years 50 • GoK • MoEP • KICD
learning institutions. in the basic developed. • Developme • Academia
education and nt partners
higher learning • Private
curriculum. sector

26. Energy Financing and Pricing

Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (Ksh. Sources
Millions) Lead Support

Policy Goal/Objective: Mobilize funding for energy projects.

Statement: Adopt viable and sustainable financing options to modernize energy infrastructure, adopt new technologies and enhance energy access.

i. Explore and adopt Development partners

1. Amount of funding 2025 – 50 • GoK • MoEP • National
viable and funding. secured. 2034 • Development Treasury
sustainable financing Adoption of financing
2. Percentage increase in partners • DFIs
options from local options development partners • Private sector • UTLs
and international Cost-effective energy funding.
projects.
sources to ensure cost

102
 effective utilization Sustainable financing
3. Number of projects
of locally available model. implemented using local
energy resources. Increased local energy resources.
production. 4. Sustainability of
financing model.
5. Energy generation
capacity increase.
ii. Develop frameworks Alternative financing Number of financing 2025 - 50 • GoK • MoEP • EPRA
for sustainable models developed. frameworks developed. 2034 • Development
innovative financing Stakeholder engagement Stakeholder engagement partners
mechanisms such as and consultation. Pilot projects launched: • Private sector
PPPs, assets Pilot programs or projects Amount of capital
launched. mobilized.
monetization, climate
Policy recommendations Training and capacity-
financing and local
capacity-building building completion.
equity funds. programs.
Sustainable funding
strategies.

iii. Operationalize Consolidated Energy Fund Consolidated Energy 2 50 • GoK • MoEP • EPRA
Consolidated Energy established. Fund. • Development
Fund and allocate Resource allocation Amount allocated to partners
adequate resources framework. national and county Private sector
for both national and Monitoring and evaluation levels.
systems. Number of projects
county levels.
Awareness and capacity- funded.
building. Capacity-building
Strategic partnerships for initiatives completed
fund management. Monitoring and
Legal framework for the evaluation framework
CEF developed. established.
iv. Adopt
i diversified Diversified internal Number of new revenue 3 years 30 • GoK • MoEP • EPRA
internal
v revenue revenue generation generation frameworks • Development
generation
. developed. partners

103
 frameworks to framework and guidelines Amount of revenue • Private sector
increase revenue developed. generated from new
generation within the Revenue targets set. frameworks.
sector. Stakeholder engagement. Revenue growth rate.
Public communication and Stakeholder engagement
awareness. success.
Sustainability of revenue Sustainability of new
generation models. revenue streams.
Revenue generation
guidelines.
v. Provide
v targeted Fiscal incentive programs Number of fiscal 3 years 50 • GoK • MoEP • EPRA
fiscal
. incentives, such designed. incentive programs • Development
as tax exemptions, Awareness campaigns. developed. partners
subsidies, or grants, Increased energy Number of low-income • Private sector
to support low- affordability. households benefiting.
Integration with energy Amount of funding
income households to
policies. disbursed.
ensure equitable
Monitoring and evaluation Equity in distribution of
access to energy. systems. incentives.
Integration with energy
access goals.
Monitoring and reporting
compliance.
vi. Provide
v adequate Fiscal incentive schemes Number of fiscal 3 years 30 • GoK • MoEP • EPRA
fiscal
i incentives and developed. incentive schemes • Development
harmonize
. various Harmonized regulatory implemented. partners
charges levied on framework. Reduction in the number • Private sector
energy operations to Review of existing laws, of regulatory charges.
levies and charges. Increase in energy sector
create an attractive
Investor-friendly policy investment.
and predictable
environment. Number of new energy
investment Increased energy sector projects initiated.
environment in the investment. Private sector
energy sector. participation in PPPs.

104
 Energy infrastructure Stability and
development. predictability of energy
sector regulations.
Reduction in energy
project approval times.
Harmonized energy
tariffs and charges.
vii. Operationalize
v the Renewable Energy Renewable Energy 3 30 • GoK • MoEP • SAGAs in
draft
i Renewable Auctions Policy Auction Policy published. • Development MoEP
Energy
i Auctions operationalized. Number of energy partners
Policy
. for Competitive bidding auctions conducted. • Private sector
competitive pricing environment Reduction in end user
Capacity building for tariffs.
and improved risk
stakeholders. Number of projects
management of
Successful renewable awarded contracts.
renewable projects. energy projects awarded.
viii. Review
v of electricity Regular tariff review Timeliness of tariff 3 50 • GoK • EPRA • SAGAs in
tariffs
i every three mechanism established. reviews. • Development MoEP
years
i to ensure Cost-reflective electricity Cost-reflective tariffs partners • KAM
predictability,
i timely tariffs. published. • Private sector • KEPSA
recovery
. and cost- Predictability in tariff Tariff adjustment
changes. predictability.
reflective tariffs.
Fair and affordable tariffs. Public consultation
Stakeholder consultation during tariff review.
process. Consumer affordability.
Strengthened regulatory Financial stability of the
framework. energy sector utilities.

27. Power Procurement

105
Policy Statement Expected Output Key Performance Time Estimate Funding Responsibility
Indicators Frame d Cost Sources
Lead Support
(Ksh.
Millions)
Policy Goal/Objective: Promote competitive energy procurement and pricing.
Policy Statement: To enhance sustainable energy procurement.
i. Develop and implement Power procurement Published power 3 years 20 • GoK • SDE • SAGAs in
power procurement guidelines, standardized procurement framework. • Development • KPLC MoEP
guidelines, standardized processes and practices. Adopted M&E partners • National
processes, and practices to framework for energy • Private sector Treasury
attract investments in the sector investments.
Developed power
energy sector.
procurement process.
Published end user
tariffs.
ii. Enhance collaboration Increased collaboration Stakeholders 2025- 10 • GoK • SDE • National
between sectors and to ensure adequacy of engagement in power 2034 • Development Treasury
agencies to fast-track capacity to meet the procurement. partners • CoG
developments that country’s energy Number of projects • Private sector • SAGAs in
increase electricity demand. initiated. MoEP.
Comprehensive guiding
capacity expansion.
collaboration framework
between research
institutions and the
Energy Sector players.

28. Energy Security

Policy Statement Expected Key Performance Indicators Time Estimated Funding Sources Responsibility
Output Frame Cost (Ksh.
Million)

106
 Lead Support
Policy Goal/Objective: Promote renewable energy resource development and utilization.

Statement 1: Enhance energy security in the country.

i. Ensure LCPDP with Adequate reserve margins in power 2 years 5 • GoK • SDE • SAGAs in
diversification of the several generation and dispatch. • Developmen MoEP
energy mix in the generation A balance generation mix from t partners • COG
medium and long sources. several sources. • Private
term for a balanced Solar and wind power plants with Sector
storage systems. • Non-State
power system.
An updated LCPDP. Actors
ii. Facilitate public and New Increased generation capacity by 2 years 5 • GoK • SDE • SAGAs in
private investment generation public companies. • Developmen MoEP
across the power capacity to New generation capacity developed t partners • COG
supply value chain. meet growing by IPPs. • Private
demand. Sector
• Non-State
Actors
iii. Minimize dispatch of Dispatch of Reduced thermal generation. 2 years 2 • GoK • SDE • SAGAs in
thermal plants and thermal Increase in renewable energy • Developmen MoEP
avoid development of generation dispatch. t partners • COG
non-renewable reduced. • Private
energy resources. Sector
• Non-State
Actors
iv. Undertake feasibility Feasibility Identification pumped hydro 3 years 200 • GoK • SDE • SAGAs in
studies for pumped studies on projects sites. • Developmen MoEP
hydro projects pumped t partners • COG
including hydro. • Private
identification of Sector
suitable sites. • Non-State
Actors

107
 v. Development of and Maintaining A reserve margin of 15% in the 10 • GoK • SDE • SAGAs in
planning for firm and planning system. • Developmen MoEP
capacity in order to for adequate LCPDP with at least 15% annual t partners • COG
maintain at least 15% generation reserve margin. • Private
firm power reserve Sector
margin. • Non-State
generation capacity.
Actors
vi. Adequate strategies Enhanced A maximum of 20% contracted 2025- 15 • GoK • SDE • SAGAs in
for national energy national generation capacity of the annual 20340 • Developmen MoEP
independence to power peak or projected peak demand. t partners • COG
ensure firm power generation • Private
import contracts do capacity. Sector
not exceed 20%. • Non-State
Actors
vii. Mobilize adequate Enhanced Reduced power outages. 2025- 200 • GoK • SDE • SAGAs in
investments for national Reliable and stable grid. 2034 • Developmen MoEP
development of grid transmission t partners • COG
infrastructure and grid. • Private
regional grid Sector
interconnections for • Non-State
resilience, cross- Actors
border exchanges.
viii. Continue with oil Country Production of crude oil. 2025- 200 • GoK • MoEP • SAGAs in
and coal readiness to Exploration and development of 2034 • Developmen MoEP
development deploy local coal and oil resources. t partners • CoG
activities and oil and coal • Private • NOCK
strengthen legal and electricity Sector • Communit
production • Non-State y
regulatory
and direct Actors
frameworks to
industrial use.

108
 enhance the national
energy security.

29. Integrated Energy Planning

Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost
FY
Lead Support
Policy Goal/Objective: Enhance institutional capacity, governance and collaborative frameworks.
Statement 1: Enhance the integrated energy planning in the energy sector.
i. Establish an Institutional Energy Planning and 1 year 400 • GoK • MoEP • National
institutional framework. Coordination Unit. • Development • CoG Treasury
framework for INEP Committee. partners • SAGAs in
integrated energy County Energy • Private Sector MoEP
planning at the Planning Committee. • Non-State • CRA
National and County Energy Actors • Academia
County level. Departments. • Research
Institutions
ii. Build the capacity Skilled personnel for Training needs 2025 – 500 • GoK • MoEP • National
of Ministries, integrated energy assessment. 2034 • Development • CoG Treasury
Departments, planning. Peer to peer learning partners • SAGAs in
agencies and Secondment of • Private Sector MoEP
Counties in INEP. officers. • Non-State • CRA
Actors • Academia
• Research
Institutions
iii. Mobilize adequate Adequate financial Amount of funding 2025 – 700 • GoK • MoEP • National
financial resources. allocated. 2035 • CoG Treasury

109
 resources for Resource mobilization • Development • SAGAs in
integrated national framework. partners MoEP
energy planning. • Private Sector • CRA
• Non-State • Academia
Actors • Research
Institutions
iv. Develop county Energy plans and Energy plans/ sub- 2025 – 100 • GoK • MoEP • National
energy plans and sub-plans. plans. 2035 • Development • CoG Treasury
integrate all plans partners • SAGAs in
to INEP. • Private Sector MoEP
• Non-State • CRA
Actors • Academia
• Research
Institutions
v. Enhance data Adequate, reliable Data & information 2 years 25 • GoK • MoEP • National
management and and accessible data available and • Development • CoG Treasury
governance in the and information for information for INEP. partners • SAGAs in
energy sector. integrated energy Harmonized data • Private Sector MoEP
planning. collection mechanism. • Non-State • CRA
Data management & Actors • Academia
governance policy. • Research
A centralized data Institutions
repository for the
energy sector.
Data Working Group.
vi. Establish Monitoring, Monitoring, 2 years 10 • GoK • MoEP • National
frameworks for evaluation, reporting evaluation, reporting • Development • CoG Treasury
monitoring, & learning & learning framework partners • SAGAs in
evaluation and framework. for integrated energy • Private Sector MoEP
reporting of planning. • Non-State • CRA
energy plans. Actors • Academia
• Research
Institutions

110
vii. Establish Stakeholder Stakeholder 2025 – 50 • GoK • MoEP • National
mechanisms for engagements. engagement strategy. 2035 • Development • CoG Treasury
regular Stakeholder partners • SAGAs in
stakeholder engagement forums. • Private Sector MoEP
engagement to • Non-State • CRA
foster a shared Actors • Academia
understanding. • Research
Institutions
viii. Enhance the use Integrated and Geospatial planning 2025 – 200 • GoK • MoEP • National
of geospatial tools harmonized energy committees. 2034 • Development • CoG Treasury
and harmonize planning systems and Geospatial system. partners • SAGAs in
energy planning tools. Harmonized energy • Private Sector MoEP
tools used for planning tools. • Non-State • CRA
INEP. Established capacity Actors • Academia
in geospatial systems • Research
and INEP tools. Institutions

30. Devolution
Policy Statement Expected Output Key Performance Time
Estimated Funding Sources Responsibility
Indicators Frame
Cost
Lead Support
(Ksh.
Million)
Policy Goal/Objective: Enhance institutional capacity, governance and collaborative frameworks.
Statement 1: To strengthen devolution through energy planning and renewable energy integration.

i. Support the Counties in Adequate financial Amount of funding 2025 – 15,000 • GoK • MoEP • National
mobilizing adequate resources for allocated. 2035 • Development • CoG Treasury
resources for county energy Resource mobilization partners • SAGAs in
implementation of functions. framework. • Private Sector MoEP

111
 devolved energy • Non-State • CRA
functions. Actors
ii. Support the Counties to County Energy County Energy 1 year 470 • GoK • MoEP • National
establish their Directorates. Directorates. • Development • CoG Treasury
respective, dedicated partners • SAGAs in
energy directorates. • Private Sector MoEP
• Non-State • CRA
Actors
iii. Support the Counties in Skilled personnel Training needs 2025 - 470 • GoK • MoEP • National
building their capacity in for discharge of the assessment. 2034 • Development • CoG Treasury
order for them to devolved energy Trainings to county partners • SAGAs in
discharge their energy functions. officers. • Private Sector MoEP
functions. Peer to peer learning. • Non-State • CoG
Secondment of Actors • CRA
officers.
iv. Support the Counties to County specific County specific energy 2 years 470 • GoK • MoEP • National
develop county specific energy policies and policies and • Development • CoG Treasury
energy policies and regulations. regulations. partners • SAGAs in
regulations. • Private Sector MoEP
• Non-State • CRA
Actors

31. Land Acquisition

Policy Statement Expected Key Performance Timeframe Estimated Funding sources Responsibility
Output Indicators Cost
(Kshs. M) Lead Support

Policy Goal/Objective: Support environmental and social sustainability.

112
Policy Statement Expected Key Performance Timeframe Estimated Funding sources Responsibility
Output Indicators Cost
(Kshs. M) Lead Support

Statement 1: Streamline land acquisition for energy infrastructure.

i. Develop and implement a Standardized Published regulations/ 2 years 45 • GoK • MoEP • SAGAs
standardized framework land and framework for land and • Development in MoEP
for land and wayleave wayleave wayleave acquisition. partners • CoG
acquisition for energy acquisition Approved collaboration • Private Sector • NLC
projects. framework for framework for • Non-State Actors • MoL
energy stakeholder engagement. • MINA
projects. Disaster risk • Non-
management mechanism State
on land-based energy Actors
resources.
ii. Implement public Public Approved Public 2027 80 • GoK • MoEP • SAGAs
sensitization and Sensitization sensitization programs • Development in MoEP
participation programs program for for energy projects and partners • CoG
for energy projects and energy programmes. • Private Sector • NLC
programmes. projects and Number of public • Non-State Actors • MoL
programmes sensitization programs on • MINA
developed. energy projects and • Non-
programmes. State
Timely land/wayleave Actors
acquisition for energy
projects.

32. Environmental Issues in Energy

113
Policy Statement Expected Output Key Performance Time Estimated Funding sources Responsibility
Indicators Frame Cost (Ksh.
Million)

Lead Support

Policy Goal/Objective: Support green industrialization, environmental and social sustainability.

Statement 1: Enhance environmental sustainability in energy projects.

i. Develop and implement Environmental A multi-sectoral energy 2025- 100 • GoK • SDE • SAGAs
environmental sustainability sustainability sector committee to 2034 • Development in MoEP
framework for energy sector framework for energy coordinate climate change partners • CoG
projects. sector projects. matters established. • Private Sector
A framework to mainstream • Non-State
ecosystem and biodiversity Actors
management into energy
sector developed.
ii. Establish programmes to Programmes to Programmes established to 2025- 100 • GoK • SDE • SAGAs
enhance energy sector enhance energy enhance energy sector 2034 • Development in MoEP
technical capacity to comply sector technical technical capacity to partners • CoG
with environmental capacity to comply comply with environmental • Private Sector
management regulations. with environmental management regulation. • Non-State
management Number of sensitization and Actors
regulations awareness creation forums.
established.

Statement 2: Promote cogeneration, gasification and waste to energy technologies.

i. Formulate and implement National Strategy for National strategy for 2025- 40000 • GoK • SDE • SAGAs
national measures for Coordinating coordinating cogeneration, 2034 • Development in MoEP
Cogeneration, partners • CoG

114
 Lead Support

promoting cogeneration, Gasification and gasification and WTE • Private Sector • NEMA
gasification and WTE WTE Technologies. technologies developed. • Non-State • Academi
technologies. Number of Plants on Actors a
Infrastructure for cogeneration, gasification • Public
cogeneration, and WTE developed. institutio
gasification and WTE ns
developed. A Standardized PPA for
cogeneration, gasification
and WTE in developed.
ii. Capacity building on Capacity building Capacity building strategy 2025- 150 • GoK • SDE • SAGAs
Cogeneration, Gasification program and developed. 2034 • Development in MoEP
and WTE. implementation. Number of trainings partners • CoG
Strategy on contacted. • Private Sector • NEMA
cogeneration, Number of personnel • Non-State • Academi
gasification and WTE trained. Actors a
technologies. • Public
institutio
ns

33. Gender Equality, Diversity and Social Inclusion (GEDSI) in Energy

Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (Khs. Sources
Million)
FY

115
 Lead Support
Policy Goal/Objective: Enhance institutional capacity, governance and collaborative frameworks.

Statement 1: Mainstreaming gender equality, diversity and social inclusion in energy.

i. Strengthen GEDSI GEDSI responsive Energy Sector GEDSI 2 years 25 • GoK • MoEP • SAGAs in
responsive institutional energy sector. Strategy. • Developmen MoEP
frameworks to enhance t partners • CoG
gender mainstreaming. • Private • Research
Sector institutions
• Non-State • Academia
Actors
ii. Develop and GEDSI GEDSI disaggregated 2 years 30 • GoK • MoEP • SAGAs in
operationalize GEDSI disaggregated Data. data. • Developmen MoEP
disaggregated data t partners • CoG
systems. • Private • Research
Sector institutions
• Non-State • Academia
Actors
iii. Promote GEDSI in Presence of GEDSI Streamlining of 2 years 5 • GoK • MoEP • SAGAs in
employment and in the energy sector GEDSI in energy • Developmen MoEP
leadership in the energy at all levels. projects and functions. t partners • CoG
sector. • Private • Research
Sector institutions
• Non-State • Academia
Actors

116
iv. Establish programmes GEDSI Number of GEDSI 2 years 10 • GoK • MoEP • SAGAs in
targeted in creating Programmes/Projects Programmes/Projects. • Developmen MoEP
public awareness on . t partners • CoG
Number of GEDSI • Private • Research
GEDSI.
engaged in energy Sector institutions
projects and functions. • Non-State • Academia
Actors

34. Research, Development and Innovation

Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (Ksh. Sources
Million)

Lead Support

Policy Goal/Objective: Enhance institutional capacity, governance and collaborative frameworks.

Statement 1: Fostering research, development, and innovation to unlock new opportunities in the energy sector.
i. Promote the development Locally manufactured Developed quotas on 5 years 500,000,000 • GoK • SDE • SAGAs in
of locally produced energy energy components. locally manufactured • Developme MoEP
technologies such as solar energy components. nt partners • National
panels, wind turbine parts, • Private Treasury
Number of locally Sector •
geothermal equipment, CoG
manufactured energy •
transmission & MITI
components • KEPSA
distribution equipment
developed annually. • KAM
clean cooking equipment,
and energy efficiency • Academia
Percentage of locally
technologies to drive • Research
manufactured content
industrial growth and job institutions
in energy projects.
creation.

117
 Jobs created in the
local energy
manufacturing sector.
ii. Prioritize research and Local green Total funding 5 years 100,000,000 • GoK • SDE • SAGAs in
innovation to develop manufacturing allocated to RDI in • Developmen MoEP
cost-effective, locally industry. the energy sector. t partners • National
made energy solutions and Number of domestic • Private Treasury
reduce reliance on alternatives to Sector • CoG
imports. imported energy • MITI
technologies • KEPSA
developed. • KAM
Reduction in energy • Academia
production costs due • Research
to RDI projects. institutions

iii. Establish platforms to link Skilled personnel and Number of 2025 – 500 • GoK • SDE • SAGAs in
research with industrial job creation. innovation platforms 2034 • Developmen MoEP
applications and established for t partners • National
strengthen collaboration linking RDI with • Private Treasury
between academia, industry. Sector • CoG
industry, and research Number of • MITI
institutions. collaborative projects • KEPSA
between academia, • KAM
industry, and research • Academia
institutions. • Research
institutions
iv. Facilitate partnerships to Collaborative Private sector 2025 – 100 • GoK • SDE • SAGAs in
commercialize energy frameworks in investment leveraged 2034 • Developmen MoEP
innovations and lower innovations and RDI for energy RDI t partners • National
production costs. initiatives. • Private Treasury
Sector • CoG
• MITI

118
 Number of energy • KEPSA
innovations • KAM
registered. • Academia
• Research
institutions
v. Provide intellectual Increased local Number of 2025 – 500 • GoK • SDE • SAGAs in
property protection and technology innovators provided 2034 • Developmen MoEP
commercialization support development. with IP protection t partners • National
to bring local energy assistance. • Private Treasury
technologies to market. Number of energy Sector • CoG
technologies • MITI
successfully • KEPSA
commercialized with • KAM
government support. • Academia
Time reduced from • Research
innovation to market institutions
launch for supported
technologies.

35. Human Resource Development and Retention

Policy Statement Expected Output Key Performance Time Estimated Funding Sources Responsibility
Indicators Frame Cost (Ksh.
Million)
Lead Support

Policy Goal/Objective: Enhance institutional capacity, governance and collaborative frameworks.

Statement 1: Development of human capacity and retention of staff in the energy sector.

119
 i. Establish a Inter-institutional Inter-institutional 2025 300 • GoK • MoEP • SAGAs in
i centralized collaboration framework developed. • Developmen MoEP
framework to frameworks. A national registry of t partners • National
promote inter- capacity-building • Private Treasury
programs established. Sector • CoG
institutional
• MITI
collaboration for
• KEPSA
skill and knowledge
• KAM
development in the • Academia
energy sector. • Research
institutions
ii. Establishment of a Knowledge Knowledge framework 2025 • GoK • MoEP • SAGAs in
knowledge management developed. • Development MoEP
150 •
management framework. Skills Retention partners National
framework and Committee established. • Private Sector Treasury
Established national • CoG
human resource
energy sector training and • MITI
retention plan in the
retention strategy. • KEPSA
energy sector.
Targeted programs to • KAM
retain specialized • Academia
personnel. Research
institutions
iii. Promote Skilled personnel. Training needs Continuo 30000 • GoK • MoEP • SAGAs in
recognition and assessment. us 2025 – • Development MoEP
accreditation of Trainings & Capacity 2035 partners • National
novel and Building. • Private Sector Treasury
Peer to peer learning • CoG
innovative courses
Secondment of officers • MITI
and development of
Exchange programs. • KEPSA
energy sector
Succession planning of • KAM
personnel. • Academia
personnel.
• Research
institutions

120
iv. Foster linkages and Stakeholder Stakeholder engagement 2025 – 500 • GoK • MoEP • SAGAs in
partnerships engagement Strategy. 2034 • Development MoEP
between energy framework. Stakeholder engagement partners • National
sector entities, forums. • Private Sector Treasury
• CoG
academia, and
• MITI
research institutions
• KEPSA
to promote
• KAM
knowledge sharing • Academia
for capacity • Research
building. institutions

36. Cyber Security, ICT and Artificial Intelligence

Policy Statement Expected Output Key Performance Time Estimated Funding Responsibility
Indicators Frame Cost (Ksh. Sources
Million)

Lead Support

Policy Goal: Develop, modernize and optimize energy infrastructure.

Statement 1: Deployment of cybersecurity measures, robust data protection frameworks and integration of artificial intelligence.

121
i. Establish a comprehensive Resource Risk management and 2 years 200 • GoK • SDE • ICT
framework for allocation mitigation framework • Developmen Authority
coordinating cybersecurity framework. established. t partners • SAGAs in
and data protection Deployment of advanced • Private MoEP
security technologies. sector • CoG
measures, ensuring
Budgetary allocation for • CA
seamless integration
cybersecurity and ICT. • MICDE
across the energy sector.
Engagement of cyber • MICNG
security personnel in
SAGAs.
ii. Enhance capacity- Skilled personnel Training needs assessment 2025 – 250 • GoK • MoEP • ICT
building initiatives. for integrated Trainings on 2034 • Development Authority
energy planning. cybersecurity. partners • SAGAs in
Peer to peer learning • Private MoEP
forums. Sector • CoG
Employment of • Non-State • CA
cybersecurity personnel. Actors • MICDE
• MICNG
iii. Strengthen collaboration Regular Stakeholder engagement 2024 – 50 • GoK • MoEP • ICT
with regional and stakeholder Strategy. 2035 • Development Authority
international entities to engagements. Stakeholder engagement partners • SAGAs in
address cross-border cyber forums. • Private MoEP
Sector • CoG
threats targeting energy
• Non-State • CA
infrastructure.
Actors • MICDE
• MICNG

122
iv. Strengthen collaboration Inter-institutional Cyber security framework 1 years 50 • GoK • MoEP • ICT
among energy sector collaboration developed. • Development Authority
institutions to develop and frameworks. Cyber Security Unit partners • SAGAs in
implement robust business established. • Private MoEP
Formation of Cyber Sector • CoG
continuity and crisis
Security Committee. • Non-State • CA
management frameworks.
Develop preparedness and Actors • MICDE
response mechanisms. • MICNG
v. Adopt artificial AI Integration and Training programmes on 2 years 100,000 • GoK • MoEP • ICT
intelligence technologies development in AI in the energy sector. • Development Authority
in management of energy the sector. partners • SAGAs in
sector systems. • Private MoEP
Sector • CoG
• Non-State • CA
Actors • MICDE
• MICNG

123
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