Kenya is intensifying its commitment to achieving 100% renewable energy by 2030, actively seeking increased investor participation in the green energy sector. Energy and Petroleum Cabinet Secretary Opiyo Wandayi emphasized the government’s dedication to creating an enabling environment for investors during his recent visit to the Lake Turkana Wind Power (LTWP) project.
“We are fully committed to providing an enabling environment to investors in the nascent green energy sub-sector as a way of affording the citizenry clean, affordable, reliable, and efficient energy. This, in our view, is a steady pathway to a nationwide transition to green energy,” Wandayi said.
Currently, over 70% of Kenya’s energy is derived from renewable sources such as geothermal, hydro, and wind. The solar energy sector is also gaining traction for both industrial and domestic applications. To further bolster this transition, Wandayi has petitioned the National Assembly to lift the 2023 moratorium on Power Purchase Agreements (PPA), a move aimed at enhancing investor confidence in renewable energy projects.
The LTWP project exemplifies Kenya’s renewable energy ambitions, supplying 12% of the nation’s electricity since its inception in 2018. The wind farm has delivered 9.5 billion kilowatt-hours (kWh) of clean energy to the national grid, boasting an average capacity factor of 54.7%, one of the highest globally.
Max Schiff, CEO of LTWP, highlighted the project’s positive impact on the local community in Marsabit County, noting that 80% of its employees are recruited locally. The company has invested over KSh840 million in corporate social investment projects focusing on education, water, and health.
“We give preference to locals whenever a vacancy arises. This ensures that we cultivate a symbiotic working relationship besides addressing the soaring cases of unemployment in the region,” Schiff said. “We have invested in education, water, and health, among other thematic areas, with admirable results. We purpose to do much more, resources dictating,”
Kenya’s renewable energy initiatives have attracted significant international support. In January 2024, the Climate Investment Funds (CIF) endorsed a $70 million plan to advance the integration of renewable energy into Kenya’s grid, facilitating the country’s transition to 100% clean energy by 2030. This plan is part of a broader strategy that could see nearly $300 million invested to help Kenya achieve its renewable energy goals.
Despite these advancements, challenges remain. The high cost of capital has been identified as a significant barrier to scaling up clean power projects in Kenya. Financing costs represent a critical obstacle, necessitating innovative financial solutions and supportive policies to attract investment.
To address these challenges, Kenya is exploring various avenues to attract investment. The Accelerated Partnership for Renewables in Africa (APRA) Investment Forum, held in Nairobi in October 2024, convened ministers, investors, developers, and financial institutions to foster dialogue and mobilize large-scale investments in the renewable energy sector.
Private sector involvement is also on the rise. Companies like CrossBoundary Energy are investing in renewable energy projects across Africa, including Kenya. CrossBoundary Energy focuses on supplying electricity to commercial and industrial consumers, contributing to the continent’s renewable energy landscape.
Furthermore, the European Investment Bank (EIB) has invested over €1.5 billion in Kenya since the mid-1970s, supporting renewable energy, access to clean water, urban development, and financial inclusion. The establishment of the EIB’s hub in Nairobi in 2021 and the creation of EIB Global in 2022 have further enhanced the bank’s presence and impact in the region.
Kenya’s commitment to renewable energy is also reflected in its policy frameworks. The country’s Energy Transition and Investment Plan aims to provide equitable, sustainable energy access while driving economic growth. The plan outlines strategies for integrating renewable energy sources into the national grid and attracting investment to support these initiatives.
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