Kenya has indeed made significant strides in its energy sector, particularly in expanding electricity access and leveraging its abundant renewable energy resources. These advancements are critical for driving economic growth and improving the quality of life for its citizens.

Expanding Electricity Access

Kenya has achieved remarkable progress in boosting electricity access across the country. According to World Bank data, Kenya's access to electricity reached 76.2% of the population in 2023, a substantial increase from just 32% in 2013. This rapid electrification positions Kenya as a model for other African nations striving for universal energy access.

Key initiatives driving this expansion include:

• Last Mile Connectivity Programme (LMCP): This program, implemented by Kenya Power and the Rural Electrification and Renewable Energy Corporation (REREC), aims to connect households located within 600 meters of an existing transformer to the national grid at a subsidized cost. As of early 2025, Kenya was on track to reach 10 million households connected to the national grid by 2025, with approximately 9.76 million already connected. Phase VI of the LMCP, funded by the African Development Bank (AfDB), targets connecting an additional 150,000 customers across 45 counties by late 2025.

• Off-Grid Solutions: Recognizing the challenges of extending the grid to remote areas, Kenya has aggressively embraced off-grid solutions, particularly solar home systems and mini-grids. These decentralized renewable energy solutions are expected to account for over 50% of new connections. Government incentives and partnerships with the private sector and international donors have made solar panel installation more feasible, especially in rural areas. Startups like Hydrobox are also scaling up mini-grid projects.

• Network Reinforcement: Investment in upgrading transmission and distribution lines by Kenya Power and the Kenya Electricity Transmission Company (KETRACO) has resulted in a more stable grid, enhancing power supply reliability and accommodating growing demand. Recent projects like the Kimuka 220/66kV substation and the Narok-Bomet interconnector have improved service delivery in various regions.

Renewable Energy Dominance

A hallmark of Kenya's energy strategy is its strong commitment to renewable energy. Over 90% of Kenya's electricity is generated from renewable sources, primarily geothermal and hydro, with significant contributions from wind and a rapidly growing solar sector. This makes Kenya a continental leader in clean energy generation.

• Geothermal Power: Kenya is a global leader in geothermal energy, which currently accounts for approximately 41% of its installed electricity capacity. Projects like the 35 MW Menengai Geothermal power plant, supported by MIGA guarantees, are expanding this capacity. Continued investment in geothermal power reduces reliance on fossil fuels and lowers the average cost of power generation.

• Hydropower: Hydropower has historically been a significant contributor to Kenya's energy mix, with complexes like the Seven Forks along the Tana River providing substantial capacity. However, its vulnerability to climate change-induced droughts highlights the need for diversification.

• Solar Energy: The solar energy sector is experiencing significant growth. The International Energy Agency (IEA) projects Kenya's installed solar capacity to reach 407.4 megawatts (MW) by 2025, up from 340 MW in 2024. This growth is driven by falling solar panel costs, government support, and innovative financing models. Solar mini-grids are becoming popular in rural areas, while solar-powered electric vehicles and industrial applications are also gaining traction.

• Wind Power: Kenya hosts Africa's largest wind power project in Turkana, further diversifying its renewable energy portfolio.

Challenges and Future Outlook

Despite these impressive strides, the energy sector faces ongoing challenges:

• Growing Demand: As connectivity increases and the economy expands, electricity demand continues to rise. Kenya Power reported a new record high peak demand of 2,316 MW in February 2025. Meeting this growing demand requires sustained investment in generation capacity, aiming for a 15% spinning reserve level to ensure reliability.

• High Initial Costs: While renewables offer long-term savings, the upfront investment for new energy projects, especially for large-scale infrastructure, remains high. Access to green financing and public-private partnerships are crucial.

• Grid Stability and Infrastructure Gaps: While improvements have been made, ensuring a consistently stable grid, especially with the integration of more intermittent renewables, and addressing infrastructure gaps, particularly in rural areas, remains a challenge.

• Regulatory Framework: The Draft Energy (Renewable Energy Resources) Regulations 2025 aim to provide a clearer framework for renewable energy development, streamlining licensing and enhancing investor confidence. Effective implementation of these regulations is key.

• Climate Resilience: While renewables are key to combating climate change, hydro generation remains vulnerable to droughts, underscoring the need for a diversified and resilient energy mix.

The Kenyan government's "National Energy Policy 2025–2034" sets a bold vision for achieving universal access by 2030, increasing reliance on renewables, and transitioning to clean cooking solutions. With its strong renewable energy base and ongoing investments in infrastructure and connectivity, Kenya is well-positioned to continue its leadership in Africa's clean energy transition, contributing significantly to its economic and social development goals.