Introduction

The energy sector in Kenya is largely dominated by petroleum and electricity, with wood fuel providing the basic
energy needs of the rural communities, urban poor, and the informal sector. An analysis of the national energy
shows heavy dependency on wood fuel and other biomass that account for 68% of the total energy
consumption (petroleum 22%, electricity 9%, others account for 1%). Electricity access in Kenya is low despite
the governments ambitious target to increase electricity connectivity from the current 15% to at least 65% by
the year 2022.[1]

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Energy Situation
Kenya has an installed capacity of 2.XX GW. Whilst about 57% is hydro power, about 32% is thermal and the
rest comprises geothermal and emergency thermal power. Solar PV and Wind power play a minor role
contributing less than 1%. However, hydropower has ranged from 38-76% of the generation mix due to poor
rainfall. Thermal energy sources have been used to make up for these shortfalls, varying between 16-33% of
the mix[2]
Kenyas current effective installed (grid connected) electricity capacity is 1,429 MW. Electricity supply is
predominantly sourced from hydro and fossil fuel (thermal) sources. This generation energy mix comprises
52.1% from hydro, 32.5% from fossil fuels, 13.2% from geothermal, 1.8% from biogas cogeneration and 0.4%
from wind, respectively. Current electricity demand is 1,191 MW and is projected to grow to about 2,500 MW by
2015 and 15,000 MW by 2030. To meet this demand, Kenyas installed capacity should increase gradually to
19,200 MW by 2030.
Households in Kenya use the following source for lighting:
Electricity - about 15% of the national populace.
Use of electricity in urban areas as the source of lighting - 42%; although kerosene lamps still remain the main
source of lighting for 55% of households.
Kerosene for lighting in rural households - 87%
As of 2007, the contribution of the energy sector to the overall tax revenue was about 20%, equivalent to 4% of
GDP. The sector provides direct and indirect employment to an estimated 16,000 persons[3].
It costs approximately Ksh 35,000 (EUR 318.18) to connect to the national grid and about 0.1145 EUR
equivalent per kWh of electricity service. These are relatively high costs that pose a major obstacle to the
expansion of electricity connections to low-income households and small businesses, which can therefore
benefit from decentralized alternative sources of energy, such as solar.

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Renewable Energy
The record of the national utility Kenya Power and Light Company (KPLC) in rural electrification is very poor,
with only 0.94% of rural households connected in 2002 [Karekezi et al, 2004]. Between 1993 and 2001 the
number of rural households increased by 1.4 Million, whilst the number of rural households connected to the
grid increased by only 24,000. Hence, the rate of grid-based rural electrification is far below the rate of increase
in potential customers, despite a levy on electricity bills to fund it. Innovative approaches to off-grid
electrification are helping to make up for the lack of grid-based rural electrification. One of the attempts to
address this is the establishment of the Rural Electrification Authority (REA) in 2006 which now manages the
rural electrification programme.

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Biomass
Due to increased poverty, there is a significant shift to non-traded traditional biomass fuels. The proportion of
households consuming biomass has risen to 83% from 73% in 1980. As of 2007,Biomass Energy Resources
in Kenya, i.e. firewood, charcoal and agricultural wastes contributed approx. up to 70% of Kenyas final
energy demand and provided for almost 90% of rural household energy needs, about one third in the form of
charcoal and the rest from firewood.
Charcoal, firewood, paraffin, and LPG continue to be the main sources of cooking fuel. At the national level
68.8% of the households use firewood as the main cooking fuel. Almost 90% of the rural population is
dependent on firewood for cooking and heating, whilst in urban areas approximately 10% of the population
use firewood. Firewood is increasingly supplied from private smallholder lands and farm woodlots. Charcoal,
on the other hand, is mainly an urban fuel, 82% of urban households depend on it as part of their energy mix,
compared to 34% of households using charcoal in rural areas. It is estimated that Kenyans now consume 2.4
million tons of charcoal each year[2]. A national charcoal survey showed that in 2004/2005 about 200,000
producers produced 1.6 million tons of charcoal, but only 45% of them claimed to be actively involved in
resource generation[4]. One set of biomass users includes educational institutions (primary and secondary
schools, as well as colleges). Of Kenyas 20,000 educational institutions, about 90% use wood fuel to
prepare meals[5]. Due to rising petroleum prices, recently also the industry gained more interest in wood
based fuels[4]
Charcoal is produced inefficiently using tradition earth kilns whose efficiency range between 1013% yet
higher recoveries of between 30-40% have been achieved using brick kilns. Biomass comes from various
forest formations such as closed forest, woodlands, bushlands,wooded grasslands, farms with natural
vegetation and mixtures of native and exotic trees, industrial and fuel wood plantations, and residues from
agricultural crops and wood-based industries. However, although there are apparently large wood volumes
available from the various vegetation types, not all of it is accessible for energy. Accessible wood depends
on a number of factors such as legal issues, environmental issues, ownership, objectives of management,
distance, and infrastructure [2]. Additionally, most of the populationare engaged in production, transformation,
transportation and sale of wood and charcoal, making it one of the most important sources of paid livelihood. As
a result woody biomass is diminishing due to poor management and utilization in unsustainable ways.
Government ministries are supporting in one way or the other the sustainable production of energy crops, trade
of charcoal and the dissemination of improved cooking stoves.
Kenya has the potential for generation of electricity from biomass sources generated from agricultural wastes
from the sugar cane (biogas), sisal, timber (saw dust) and meat industries[2]. The development of a
bioenergy industry can improve energy security, reduce energy imports, and promote the agricultural and
forestry sector by adding value to traditional crops. It further plays an important role in off-grid electrification
of rural regions, can bring health benefits and reduce pressure on the environment. However, biomass feed
stock can also endanger ecosystems and biodiversity, especially when being cultivated in mono cultures. In
plantations, large amounts of water are needed for irrigation and agrochemicals must often be added which
can lead to water pollution. Therefore, it is essential to find a balance between opportunity maximization and
risk minimization for which a well-defined regulatory framework is essential[6].
Despite the fact that traditional biomass dominates the energy landscape, little or no budget is provided for
research, development and dissemination for heat and drought resistant crops, biofuels and modern biomass
energy use. While some progress has been made in disseminating efficient wood and charcoal stoves, more
needs to be done to building more diversity and strengthening the resilience of the energy system.

For more information on challenges and issues affecting the exploitation of biomass in Kenya, click here.

For information on biogas promotion experiences in Kenya, click here.

Biogas
Although there are several thousand biodigesters installed in Kenya, most of them operate below capacity or
are currently in disuse due to management, technical, socio-cultural or economic problems.
Biogas is widely used in institutions due to their high potential of waste utilization for biogas generation. Several
pilot programms have been established.[7]
For further information, please refer to the following articles.

Biogas Technology in Kenya

Biogas Plant - Sisal cum Cattle Farm in Kilifi, Kenya
Biogas Plant Projects in the Agricultural Sector of Kenya
Agro Industrial Biogas in Kenya
Electricity Generation from Biogas
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Biomass Stoves: Case Study

The energy-saving institutional stove project in the Mt. Kenya Region involved replacing open fire cooking
systems in schools with heavy-duty, brick-insulated stainless steel stoves that require 60 - 70% less firewood. In
doing so, schools save money on fuel costs and reduce smoke and emissions. In schools where children must
collect firewood, the use of more efficient stoves allows children to spend more time studying.[5]

For more information on impacts and benefits of the projects, click here.
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Policy and Framework

National bioenergy targets:
The Energy Act, 2006: Municipal solid waste, renewable energy sources, co-generation for energy production,
production and use of gasohol and biodiesel shall be promoted by the Minister of Energy and the Rural
Electrification Authority.
The Energy Regulations, 2012: facility owners need to undertake energy audits, investment plans and
measures for energy savings.

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Hydropower
Hydropower is the single largest generation source for grid electricity in Kenya providing some 677 MW of the
total installed grid capacity. As of 2007, a 60 MW hydro generation plant was being developed on the Sondu
Miriu with a further 20 MW planned for 2008. With the exception of Turkwell Gorge (Rift Valley) and Sondu Miriu
(Lake Victoria) some 470 MW or 70% of the total developed hydro capacity lies on the Tana River alone, a
conspicuous over reliance.
See: Hydropower Potential in Kenya

Solar Energy
Kenya has high insolation rates with an average of 5-7 peak sunshine hours (The equivalent number of hours
per day when solar irradiance averages 1,000 W/m2), and receives an average daily insolation of 4-6kWh/m2.
Only 10-14% of this energy can be converted into electricity due to the conversion efficiency of PV modules.

On 12th June 2014 the magazine "Alternative Energy Africa" published: Kenya to Stop Taxing Solar.
Kenya introduced a VAT on solar products totaling 16% in Q3 2013, but the government has now decided that it
will dismiss this tax in a move to cut cost of renewable energy products. MP John Mbadi introduced the motion
to nix the VAT in April, with it taking effect on May 30. Solar products in Kenya were already on the rise, and
now expect to see even more products particularly in the off-grid arena grow even more.
Stand-alone PV systems represent the least-cost option for electrifying homes in many rural areas, especially
the sparsely populated arid and semi-arid lands. Solar home systems (SHSs) are practical for providing small
amounts of electricity to households beyond distribution networks.The systems typically consist of a 10 50

Watt peak (Wp) PV module and a battery sometimes coupled with a charge controller, wiring, lights, and
connections to small appliances (such as a radio, television, or mobile phones). Other PV applications
include water pumping, telecommunications and cathodic protection for pipelines, power supply to off-grid
non-commercial establishments and off-grid small commercial establishments.
Kenya has one of the most active commercial PV system market in the developing world, with an installed PV
capacity in the range of 4 MW. An estimated 200,000 rural households in Kenya have solar home systems and
annual PV sales in Kenya are between 25,000-30,000 PV modules. In 2002, total PV sales were estimated to
have been 750 kWp and have grown by 170% in 8 yrs, even without government intervention or policies to
promote the uptake of PV technology.
In comparison, the Kenyas Rural Electrification Fund, which costs all electricity consumers 5% of the value of
their monthly electricity consumption (currently an estimated 16 million US$ annually), is responsible for 70,000
connections. With access to loans and fee-for-service arrangements, estimates suggest that the SHS market
could reach up to 50% or more of un-electrified rural homes.
Since 2006-2007, the Ministry of Energy has been actively promoting use of solar energy for off grid
electrification. In particular, it has funded the solar for schools programme and is targeting to extend this to off
grid clinics and dispensaries. Grid connected PV systems covering an area of 15-20 km2(3% of the Nairobi
area) could provide 3801 GWh of electrical energy a year, equivalent to the total grid electricity sales for Kenya
in 2002-2003. The costs, however, are prohibitive[2].There are about 4 million households in rural Kenya alone
which present a vast potential for this virtually untapped technology. The off grid market is estimated to be over
40MW.

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Solar Home Systems (SHS)

An estimated 200,000 rural households in Kenya have solar home systems. This success has been largely due
to private sector activity. The high level of uptake has been through the sale of products that best fit the
purchasing power of rural households, and by making these products available within the mobility range of
potential customers, typically less than 40km from the customers home[8] .
In mature market areas, such as central and western Kenya, between 20 and 40% of households have
systems. Most units are in the power range of 10 to 20 Wp. With prices being as low as US$50, the products
have been affordable by medium class families without a need for subsidies and credit. However, financial
assistance will be necessary for poorer families to be able to afford an SHS. Most of the SHS traders started
selling these products in the 1990s.
As the Kenyan business culture is mainly based upon imitation, once a few shops had been convinced by the
Nairobi based distributors, businessmen all over the country replicated their success by selling systems. The
level of competition is high with over 800 rural outlets, and by shopping around even the least informed enduser will buy at a reasonable price. Information from friends and relatives is currently the main source that new

customers turn to for advice on the best system to use, as the shopkeepers are rarely trusted. More needs to
be done to both help customers understand the importance of purchasing quality systems and to help
purchasers to identify them. The high level of sales demonstrates the effectiveness and efficiency that the
private sector can bring to disseminating SHS success that has yet to be matched by any utility or donor
programme.

For information on challenges and issues affecting the exploitation of solar energy in Kenya, click here.
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Solar Energy: Case Study

In 1995, the US-based group 'Solar Cookers International' (SCI) started a pilot project in Kakuma that
addressed this problem by providing refugees with portable, lightweight solar cookers called 'CooKits'. The
project Solar Cookers: Expansion of Solar Cooking Program at Kakuma Refugee Camp, Kenya distributed the
CooKits and taught people how to use them effectively. The aim was to demonstrate that solar cooking was a
practical alternative that would save both money and wood.

For more information on the impacts and benefits of the project, click here.
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Wind Energy
The Equatorial areas are assumed to have poor to medium wind resource. This could be a general pattern for
Kenya. However, some topography specifics (channeling and hill effects due to the presence of the Rift Valley
and various mountain and highland areas) have endowed Kenya with some excellent wind regime areas. The
North West of the country (Marsabit and Turkana districts) and the edges of the Rift Valley are the two large
windiest areas (average wind speeds above 9 m/s at 50 m high). The coast is also a place of interest though
the wind resource is expected to be lower (about 5-7 m/s at 50 m high). Many other local mountain spots offer
good wind conditions. Due to monsoon influence, some seasonal variations on wind resource are expected
(low winds between May and August in Southern Kenya).
It is expected that about 25% of the country is compatible with current wind technology. The main issue is the
limited knowledge of the Kenyan wind resource. The meteorological stations data are quite unreliable while
modern measurement campaigns have started recently for investigating wind park locations. Kenya has 35
metrological stations that are spread all over the country. Information gathered is not adequate to give detailed
resolutions due to sparse station network.
There is significant potential to use wind energy for grid connected wind farms, isolated grids (through winddiesel hybrid systems) and off-grid community electricity and water pumping. Kenya has recently experienced a
surge in wind energy installations for electricity generation. The largest windfarm (300MW) in Africa is being
constructed in Turkana area of North Western Kenya. The Ngong hills area of close to Nairobi also has 5.1 MW
installed and several MW planned by private investors. An average of 80-100 small wind turbines (400 W) have
been installed to date, often as part of a Photovoltaic (PV)-Wind hybrid system with battery storage.
Wind pumps are more common than wind turbines, 2 local companies manufacture and install wind pumps. As
of 2007, the number of installations was in the range of 300-350[2].

For information on challenges and issues affecting the exploitation of wind energy in Kenya, click here.
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Wind Energy: Case Study

Two manufacturers in Kenya have pioneered the local manufacture of wind pumps and wind generators in
Kenya, Bobs Harries Engineering Limited (BHEL) and Craftskills Entreprises, and are providing local energy

solutions for off grid households and institutions.[5]

For more information about the project,click here.

For more information about the impacts and benefits of the project, click here.
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Geothermal Energy
Kenya is endowed with geothermal resources mainly located in the Rift Valley. It is estimated conservatively
that the Kenya Rift has a potential of greater than 2000 MW of geothermal Power. Geothermal utilization first
started by drilling two wells in 1956 in Olkaria I and was followed by increased interest in the 1970s. Initial
production started in 1981 when the first plant of 15MW was commissioned in Olkaria I .Currently 45MW is
generated by Olkaria I geothermal power station, 70 MW by Olkaria II (both operated by KenGen) and an IPP is
producing 12Mwe at Olkaria III. KenGen and the IPP produce a total of 129 MW of geothermal energy and this
is expected to increase to 576MWe within the next 20 years. The national geothermal potential is estimated at
between 7,000 and 10,000 MW.
In Kenya's Least Cost Power Development Plan, geothermal power has been identified as a cost effective
power option and the Geothermal Development Company (GDC) was set up to fast track harnessing Kenya's
vast resources. Explorations for geothermal energy in the high potential areas of the Kenyan Rift are now
ongoing. KenGen, together with the Ministry of Energy conducted surface scientific studies in Suswa, Longonot,
Eburru, Menengai, Arus and Bogoria, Lake Baringo area, Korosi and Chepchuk, and Paka. Preliminary results
indicate significant potential of geothermal power in these prospects. Six exploratory wells were drilled at
Eburru. Recent studies show that the Eburru area can sustain 25 MW of electric power. More exploration work
is expected to begin in Silali in September 2007. Other high potential areas earmarked for further exploration
work in the north rift include Emurauangogolak, Barrier volcanoes, Namarunu volcanic field, and Badlands
Volcanic field and Lake Magadi geothermal area in the South, among others. The GDC is now responsible for
their development.

An up to date map of the various sites can be viewed here.

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Fossil Fuels[2]
Petroleum is Kenyas major source of commercial energy and has, over the years, accounted for about 80% of
the countrys commercial energy requirements. In 2006, 4.4 million cubic meters in petroleum products were
sold in Kenya. Of this 420,000 m3 was kerosene and 68,000 m3 was LPG. Total petroleum consumption in
Kenya has grown from 2.6 million cubic meters in 2003 to 3.73 million cubic meters in 2006. The consumption
maintains an upward trend. As of 2009, demand for petroleum products was 3,656 thousand tonnes. As of
2007, Kenya had one refinery, the Mombassa refinery, with a nameplate capacity of 90,000 barrels per day.
Since its commission the refinery has not operated at full capacity.
As of 2007 there were 4 prospective petroleum basins in Kenya, about 30 exploration wells had been drilled
and although none has encountered a commercial discovery, a number of drill stem tests have recovered or
tested gas. In 2012 significant oil reserves were discovered in North Western Kenya. Studies are still being
carried out to establish the economic feasibility.

For more information, see Fossil Fuel Resources in Kenya.

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LPG
Consumption of LPG has increased by about 59% between 2003-2008 from 40,000 to 80,000 metric tons/year.

The Kenya Petroleum Refinery makes about 30, 000 metric tons of LPG and to balance growing demand
reliance on imported LPG has increased. However, there are plans underway to upgrade the refinery to make
115,000 metric tons of LPG.

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Coal
The Ministry of Energy has identified two areas with possible commercially exploitable quantities of coal. These
are the Mui basin of Kitui and Mwingi Districts and Taru basin of Kwale and Kilifi Districts. As of 2007, 10 wells
have been drilled in Mui basin with encouraging results indicating possible existence of commercial quantities
of coal.

For more information on fossil fuel resources in Kenya, click here.

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Key Problems of the Enegy Sector

Only 6% of Kenya's land is forest. Large areas of these forest resources are not accessible due to legal or
environmental restrictions, ownership, management issues, distances or infrastructure.[4] Fuelwood demand in
the country is 35 million tons per year while its supply is 15 million tons per year, representing a deficit of 20
million tons[2]. The massive deficit in fuelwood supply has led to high rates of deforestation in both exotic and
indigenous vegetation resulting to adverse environmental effects such as desertification, land degradation,
droughts and famine among others. It is in an effort to reduce these problems that PSDA through collaboration
with other Development Partners initiated Promotion of Improved Energy Stoves in January 2006.
Nevertheless, a high population share still uses firewood for cooking more than 80% of the population use
traditional three stones technology for the same.
In the first phase of the EnDev programme, GTZ disseminated a significant amount of improved cook stoves
(ICS). In addition GTZ promoted the uptake of ICSs by institutions. However, many people without improved
stoves still do not know where to get them although they express desire to acquire them. Current improved
stove production centres do not meet the demands of the new project areas, especially in the arid and semiarid regions which need them more than any other regions in the country. This has largely contributed to
unsustainable harvesting of biomass with negative impacts on the environment and poor health among users
due to excessive inhalation of noxious gases. Up-scaling of improved cook stoves is therefore necessary.

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Policy Framework, Laws and Regulations

The energy policy for Kenya was formulated in 2004, but recently high oil prices and need for energy security
have become more urgent drivers for alternative energy. This may call for re-assessment and update of the
policy and strategy. For Kenya, high oil prices and the need to increase overall energy per capita supply are
strong motivators for development of alternative forms of energy. Transportation fuels remain the most emotive
of all energy segments, especially when prices are going up, as this is where lifestyles and livelihoods are
visibly impacted. Alternative energy is not only focusing on economics alone, but also looks at security of supply
and ther social economic benefits to the country.
A number of options are being considered:
The proposed grass-root Garsen sugar project ( bio-ethanol)
The government and stakeholders are planning to introduce bio-diesel for both rural energy use and for

blending into automotive diesel.

Expansion of the geothermal power supply
Exploration of the coal deposits in Mui basin of Kitui and Mwingi districts.
Up until the 7th of October 2004, when the Sessional Paper No. 4 was passed in parliament, Kenya operated
without a comprehensive energy policy.
Three key legislations that have been in application all addressing the commercial energy sub sector:
Electrical Power Act of 1997 currently under review
Petroleum Act Cap 116 regulates importation, transportation and storage
Petroleum Exploration and Production Act prior to the deregulation of the petroleum sub-sector, this was the
legislation that the government used to control pricing of petroleum products
In addition to these, there are other legislations relevant to operations within the energy sector:
Licensing Act for licensing of operators in for instance in the petroleum and electricity sectors
Standards Act
Environment management and coordination Act
Local Government Act
Physical Planning Act
Weights and measures Act
Monopolies Act
The relevant policy and legal framework for solar energy in Kenya includes:
Session Paper No. 4 on Energy of Kenya
Energy Act 2006
Kenya rural electrification master plan
Kenya Vision 2030
The Kenya National Climate Change Response Strategy
The new Energy Act 2006, sets out the National Policies and Strategies for short to long-term energy
development. Whether or not it is adequate to fulfill Kenyas vision of emerging as a newly industrialized country
by 2020 remains to be seen. Strong regulatory and legislative frameworks are required to manage the activities
required to achieve this vision. The Energy Regulatory Commission (ERC) was established as an Energy
Sector Regulator under the Energy Act of 2006 in July 2007. ERC is a single sector regulatory agency, with
responsibility for economic and technical regulation of electric power, renewable energy, and downstream
petroleum sub-sectors, including tariff setting and review, licensing, enforcement, dispute settlement.
The broad objective of the new Energy Policy is to ensure the provision of adequate, quality, cost-effective,
affordable supply of energy while ascertaining environmental conservation[3].
Kenya does not provide incentives or subsidies for household solar PV systems. Although some strides have
been made to improve energy efficiency and renewable energy in Kenya by the government, some planned
reforms in the Energy Act are yet to be effected. These include:
Establishment of a Centre of Excellence for Energy Efficiency and Conservation
Establishment of energy and equipment testing laboratories
Development of standards and codes of practice on cost-effective energy use

Stockholm Environment Institute (SEI) conducted a study on the economic impacts of climate change in
Kenya in 2009 and found that the countrys greenhouse gas emissions are rising quickly. The energy sector
emissions are estimated to have increased by as much as 50% over the last decade. As such, Kenyas Climate

Change Response Strategy is keen to reduce these impacts through various avenues including promoting use
of environmentally friendly energy.

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Identified Key Challenges
The policy has identified a number of key challenges these include[3]:
Upgrading and expanding the current energy infrastructure
Promoting energy efficiency and conservation
Protection of environment
Mobilizing requisite financial resources
Ensuring security of supply through diversification of sources and mixes in a cost effective manner (not
substitution which is unrealistic)
Increasing accessibility of energy services - not only electricity - to all segments of the population
Institutional corporate governance and accountability
Enhancing legal regulatory and institutional frameworks to create consumer and investor confidence
Enhancing and achieving economic competitiveness
Effectively mainstreaming the rural energy issues framework unclear on how rural energy will be addressed.
Rural energy suffers low priority and status in both planning and development resource allocation.
Disproportionate promotion of fossil fuels and grid electricity

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Strategic Actions
In line with achieving the policy objectives strategic actions need to be taken:
Training and technology transfer to build up local/rural capacity for small scale development which could
subsequently be built up and strengthened
Campaigns for identifying exploitable schemes and establishing feasibility
Technical support for and financing of demonstration schemes to familiarize local personnel with the various
technologies
Permit gaining operating experience as well as provide an initial basic electricity supply for the local population
Develop skills Project planning, implementation and monitoring.
In addition, energy planning activities should integrate socio-economic, cultural and environmental aspects,
which is only possible through strong links between policy makers, implementers and researchers - research
findings are infrequently incorporated during the decision making process of policy development.
Although economic survey findings, and findings from donor funded projects or studies have been used as
references in policy development, whether or not these are sufficient is questionable. Little attention is paid to
University based research findings. These studies are often the source of economic survey data, but receive
little or no recognition. Policy makers need to actively engage researchers and there is great need to move
towards evidence based policy and decision-making - policymaking is not an experimental process[3].

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The New Energy Policy

The New Energy Policy is as a result of the Government recognizing that the energy sector plays a key role in
the achievement of GoKs socio-economic strategies. It lays the policy framework for the provision of costeffective, affordable and adequate quality energy services on a sustainable basis.
Some of the key policy proposals are:
Legal and Regulatory Framework

The enactment of an Energy Agency (EA) to facilitate prudential regulation, enhance stakeholder interests and
boost investor confidence. It will consolidate EPA, 97 and the Petroleum Act Cap 116; and bring under its
purview the other energy sources not currently covered by other legislations.
Establishing a single independent energy regulator.
Institutional Arrangements
Creation of a Rural Electrification Authority to accelerate rural electrification
Promotion of privately or community owned energy service entities operating renewable energy power
plants /hybrid systems
Establishment of a state owned Geothermal Development Co. to undertake geothermal resource assessment
and development and to sell steam to generating entities
Energy Trading Arrangements
Creation of a domestic power pool with provision for wholesale and retail market to create competition and
hence reduce cost of electricity7
Streamlining biomass energy trading arrangements
Increasing lifeline tariff to recover the cost of electricity generation
Divestiture of GoK from oil refining, marketing and transportation in favour of private sector investments in the
same
Energy Security
Financing of 90-day-demand strategic petroleum stocks by GoK and the private sector
Encouraging wider adoption and use of renewable energy technologies to enhance their role in the energy
supply matrix
Formulation of plans for biomass energy development
Development of a national energy research agenda
The Energy Act 2006 is a consolidation of the Electric Power Act and the Petroleum Act 2000, and has a section
on petroleum and a section on electricity. The energy policy already recognizes the biomass sector and how
biomass regulation should be done in terms of pricing and sets a good basis for drafting the biomass plan. It
also recognizes the importance of renewable energy and energy efficiency[3].

Tax policy
Kenya introduced a VAT on solar products totaling 16% in 2013, but the government has now decided that it will
dismiss this tax in a move to cut cost of renewable energy products.

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Institutional Set up in the Energy Sector

Ministry of Energy (MOE)
Energy Policy and Development
Energy Regulatory Commission (ERC) [9], Ministry of Energy, Local Authority and Kenya Revenue
Authority
Licensing
Kenyan Energy Generation Company KENGEN
Generation (mainly geo-thermal and hydro power plants)

Kenya Power Limited and Kenya Transmission Company Limited

Distribution of grid connected power

Kenya Bureau of Standards

Standards
National Environmental Management Authority
Environmental Management and Coordination

Ministry of Planning, Local Authority

Physical Planning

Rural Electrification Authority and Ministry of Energy (REA)

Rural Electrification
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Institutions Dealing with Rural Electrification and Solar

Kenya Renewable Energy Association (KEREA)
This is a membership association founded to lobby and advocate for issues relevant to the renewable energy
sector in Kenya.

Kenya Solar Technician Association (KESTA)

Another membership association that was founded in 2006 to galvanise the activities of freelance solar
technicians and advocate for effective solar business especially at grass root level (rural areas).

The Task Force on Accelerated Green Energy Development at the Prime Ministers (PM) office
A committee that was founded to fast track development of green energy for achievement of national
development goals, particularly realization of Kenya Vision 2030. This is mainly through assisting with
mobilization of technical and financial resources for the implementation of green energy programs and projects,
including public private partnerships and favorable carbon finance projects.
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Activities of Other Donors:

One of the leading agencies supporting developments in the energy sector in Kenya is the french agency for
development -Agencefranaise de dveloppement (AFD). They support several initiatives including:
Conversion of diesel generators into hybrid generators (wind, solar, biomass,) and construction of new
generators and associated mini-grids in rural areas.
Scaling up of a pilot revolving fund to enhance connectivity in Kenya, complemented by a CFL distribution
component
Support to the Geothermal development company and funding of a national master plan
Credit line to commercial banks to promote renewable energy and energy efficiency projects in the agribusiness and hostelry sectors

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Further Information
The Energy Act 2006
Kenya Energy Policy Overview
Kenya: Integrated assessment of the Energy Policy
Kenya Country Report
Mobile Phone Market in Kenya
Disseminating Wind pumps in Rural Kenya - Meeting Rural Water Needs using Locally Manufactured Wind
pumps.
SWERA (Solar and Wind Energy Resource Assessment) Programme

Least Cost Power Development Plan

SREP Draft Investment Plan-May 2011.pdf Renewables Investment Plan for Kenya
Geothermal Development Company of Kenya
Feed-in tarriffs for renewables in Kenya
External information sources for Kenya
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References
Sources page
1. The German-Dutch-Norwegian Partnership - Energising development (EnDev) - Upscaling Proposal 2012
(secure document)

2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy
Resource Base: Regional and Country Specific Energy Resource Database: II - Energy Resource.
3. 3.0 3.1 3.2 3.3 3.4 GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base:
Regional and Country Specific Energy Resource Database: IV - Energy Policy.
4. 4.0 4.1 4.2 Review of Bioenergy in Kenya

5. 5.0 5.1 5.2 GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base:
Regional and Country Specific Energy Resource Database: VII - Best Practice Case Studies.
6. Review of Bioenergy in Kenya

7. Review of Bioenergy in Kenya

8. Van der Vleuten et al, 2003
9. Responsible for economic and technical regulation of both power, renewable energy, and down stream
petroleum sub-sectors, including tariff setting and review, licensing, enforcement, dispute settlement and
approval of power purchase and network service contracts