Kenya has one of Africa’s cleanest electricity systems, but electricity is only part of its wider energy story. Geothermal steam, hydropower, wind farms and solar plants supply most of the national grid. At the same time, imported petroleum still powers transport, coal supports parts of heavy industry, and wood fuel and charcoal remain central to cooking in many homes.
This contrast defines energy in Kenya. The country has developed renewable electricity more successfully than many larger economies, yet it still faces high energy costs, uneven access, transmission limits and dependence on imported fuels. Kenya’s next challenge is not simply adding more generation. It is building a reliable system that can support industrial growth, modern transport, clean cooking and rising demand across a geographically diverse country.
Kenya’s Energy Story Is Bigger Than Its Renewable Power Grid
Kenya is often described as a renewable energy leader, and that description is accurate when discussing electricity. During the financial year ending June 2024, geothermal power produced about 41.7% of electricity supplied to the grid. Hydropower contributed 24.7%, wind supplied 13.1%, and utility-scale solar added 3.5%. Thermal generation contributed 8.2%, while electricity imports supplied about 8.8%. [1]
The wider energy economy looks very different. In 2023, biomass and waste accounted for approximately 71.3% of Kenya’s total energy supply. Petroleum products contributed 20.8%, coal and coke supplied 3.7%, and renewable electricity sources represented 4.2%. These figures are not a contradiction. They show that electricity remains only one part of the energy used in homes, transport, agriculture, commerce and industry. [1]
This difference matters when measuring Kenya’s energy transition. A cleaner grid reduces emissions from electricity generation, but it does not automatically replace diesel trucks, petrol cars, industrial coal or household charcoal. Kenya must therefore manage several transitions at the same time: renewable electricity growth, transport fuel security, industrial development and cleaner household energy.
Geothermal Power Gives Kenya a Rare Strategic Advantage
The Great Rift Valley has given Kenya an energy resource that few countries can use at the same scale. Heat beneath the Rift Valley creates geothermal reservoirs that can produce steam for electricity generation. The most important development area is Olkaria, near Lake Naivasha, where power stations, steam wells and pipelines form the center of Kenya’s geothermal industry.
As of June 2024, Kenya had about 944 MW of total geothermal capacity. Geothermal was the country’s largest single electricity source and its largest generation technology by installed capacity. Unlike solar and wind power, geothermal plants can operate throughout the day and night. They provide stable output that does not depend directly on sunshine, wind speed or rainfall. [1]
This reliability has reduced Kenya’s exposure to drought. Before geothermal development expanded, weak rainfall could lower hydropower output and force the country to use more expensive oil-fired electricity. Geothermal plants provide a steady source of power during dry periods and help the grid manage changes in wind and solar generation.
Kenya also has room to expand beyond its existing Olkaria facilities. Other geothermal areas include Menengai, Baringo-Silali, Suswa and parts of the wider Rift Valley. Development is difficult because exploration wells are expensive and may not always confirm a commercially useful resource. Projects also need roads, steam systems, transmission lines and long-term financing.
Despite these barriers, geothermal power remains Kenya’s clearest energy advantage. It supports the national grid, provides experience that can be exported to other countries and creates opportunities for industry that needs reliable low-carbon electricity.
Hydropower, Wind and Solar Add Diversity but Bring Different Risks
Hydropower remains an important part of Kenya’s power system. Major facilities along the Tana River include the Masinga, Kamburu, Gitaru, Kindaruma and Kiambere stations. Other projects, including Turkwel and Sondu Miriu, contribute power in different parts of the country.
Hydropower can respond quickly when electricity demand changes, making it valuable for grid management. However, its output depends on rainfall and reservoir levels. Drought can reduce generation, while extreme rainfall can create operational and environmental pressures. Kenya’s use of geothermal, wind, imports and thermal backup has made the system less dependent on hydrological conditions than it once was.
Wind power has become another major source. The Lake Turkana Wind Power project in Marsabit County is the best-known example and helped turn northern Kenya into an important generation region. Wind conditions in northern and eastern Kenya offer further potential, although projects require long transmission lines to reach Nairobi, the central highlands and coastal demand centers.
Solar energy is growing through utility-scale plants, commercial systems, household installations and off-grid equipment. Kenya had more than 440 MW of total solar capacity by June 2024 when grid-connected, captive and off-grid systems were counted together. Commercial and industrial users have increasingly installed their own solar systems to reduce electricity costs and improve supply security. [1]
Solar also has an important rural role. In areas where grid extension is expensive, mini-grids and standalone solar systems can power lighting, communications, water pumps, refrigeration and small businesses. Solar cannot replace every part of the national grid, but it can connect settlements that may otherwise wait years for conventional infrastructure.
Kenya’s Grid Is Now as Important as Its Power Plants
Kenya had approximately 3,200 MW of interconnected generation capacity in June 2024. Total capacity was higher when captive and off-grid systems were included. Peak electricity demand reached about 2,177 MW, while the number of grid-connected customers rose to nearly 9.66 million. [1]
These figures suggest that Kenya has more installed capacity than peak demand, but the comparison does not show the full condition of the power system. Plants are not always available at their full rated output. Hydropower changes with rainfall, wind and solar vary with weather, and transmission faults can prevent electricity from reaching consumers. Reserve capacity is also necessary for maintenance and unexpected outages.
Geography adds another difficulty. Geothermal plants are concentrated in the Rift Valley, the largest wind project is in the north, major hydropower stations are linked to specific river systems, and much of the strongest demand is in Nairobi, central Kenya and the Mombasa corridor. Electricity must travel long distances across the country.
Kenya Electricity Transmission Company has therefore become central to national energy policy. High-voltage projects are designed to move power from generation areas, strengthen supply around major cities and reduce the risk that one line failure will interrupt a large region.
Cross-border infrastructure is also changing Kenya’s position. The Ethiopia–Kenya interconnector links Kenya to Ethiopia’s hydropower system, while the 400-kV Kenya–Tanzania interconnector was energized in late 2024. These connections allow power imports, future exports and regional electricity trade through the Eastern Africa Power Pool. [2]
Regional trade can lower costs and improve reliability, but it does not remove the need for domestic investment. Kenya still needs stronger substations, distribution equipment, urban networks and rural connections. Power quality and outage frequency remain concerns for households and businesses, especially where local infrastructure has not kept pace with new connections.
Oil Imports Still Shape Kenya’s Economy and Transport System
Oil has a limited role in Kenya’s electricity mix, but it remains essential to the wider economy. Road transport, aviation, agriculture, construction, backup generators and industrial machinery all depend heavily on petroleum products.
Kenya is a net importer of petroleum. Fuel enters mainly through facilities at the Port of Mombasa, including the Kipevu oil terminals. The Kenya Pipeline Company then transports products inland to storage and distribution centers serving Nairobi, Nakuru, Eldoret, Kisumu and other markets.
Domestic petroleum demand totaled about 5.46 million cubic meters during the financial year ending June 2024. The final retail price of petrol, diesel and kerosene is influenced by international fuel costs, shipping, exchange rates, taxes, levies, storage and distribution charges. This means that Kenya can have a largely renewable electricity system while remaining exposed to global oil-market shocks. [1]
The country is also moving toward domestic crude production. Commercial discoveries were made in the South Lokichar Basin in Turkana County, although development was delayed for years by financing, infrastructure and commercial negotiations.
Under the current phased plan, initial production is projected at around 20,000 barrels per day, followed by a possible increase to 50,000 barrels per day. First oil is expected in December 2026. The early production plan involves moving crude by road or rail to Kenya Petroleum Refineries Limited at the coast, followed by export through Kipevu Oil Terminal II. [3]
Turkana oil could create export revenue and local investment, but it will not immediately remove Kenya’s dependence on imported refined fuels. Domestic crude must still be processed or exported, while the country continues to require petrol, diesel, jet fuel and LPG in forms that can be used by consumers.
Natural Gas Remains More of a Strategy Than an Existing Industry
Natural gas currently has only a small direct role in Kenya. The country does not have a mature gas production, pipeline or distribution system comparable to those in Tanzania, Egypt or Algeria.
Kenya’s national energy policy identifies possible natural gas resources, especially in the Lamu Basin. However, exploration has been slow, and the country lacks the handling, processing and distribution infrastructure required for a large domestic gas market. Developing a gas system would require successful discoveries, major investment and customers able to support long-term contracts. [4]
Natural gas has been discussed as an option for industry, fertilizer production, transport and electricity generation. Policy documents have also considered converting some petroleum-fired thermal plants to liquefied natural gas. Such a change could reduce some local emissions and fuel costs, but it would require import terminals, storage facilities, pipelines and reliable LNG supply agreements.
For now, Kenya’s thermal generation fleet relies mainly on diesel and heavy fuel oil rather than a broad natural gas network. Thermal capacity provides backup, peak supply and voltage support, but it generated less than one-tenth of national electricity during 2023/24. [1]
Gas could become more important in the future, especially if domestic resources are confirmed or regional supplies become available. However, geothermal expansion, electricity imports, batteries and other forms of flexibility may compete with gas in the power sector.
Coal Is an Industrial Fuel, Not the Foundation of Kenya’s Grid
Kenya does not operate a large coal-fired power system. Coal and coke are mainly imported for high-temperature industrial processes, including cement production, steelmaking, ceramics and some captive generation.
Coal and coke supplied about 3.7% of Kenya’s total energy in 2023. Government studies have also identified domestic coal resources, including an estimated 400 million tonnes in the Mui Basin of Kitui County. However, local production has not developed into a major commercial industry. [4]
The proposed 1,050-MW Lamu coal power plant once appeared likely to give coal a much larger place in Kenya’s electricity mix. Supporters presented it as a source of large-scale power for industry and the Lamu Port–South Sudan–Ethiopia Transport Corridor. Opponents raised concerns about air pollution, climate emissions, marine ecosystems, local livelihoods and the quality of public consultation.
The project’s environmental licence was cancelled by the National Environment Tribunal in 2019. In October 2025, the Environment and Land Court dismissed the developer’s appeal and upheld the tribunal’s decision. [5]
This outcome did not end all discussion of domestic coal. Kenya’s national policy still considers coal for industries that are difficult to electrify, especially processes requiring very high heat. However, the country’s electricity investment direction is now much more closely linked to geothermal, wind, solar, hydropower, regional imports and possible nuclear development.
Kenya’s Nuclear Programme Has Moved from Study to Long-Term Planning
Kenya does not currently operate a nuclear power plant. Its nuclear activities are mainly connected to research, medicine, regulation, training and preparation for a possible future electricity programme.
The Nuclear Power and Energy Agency has been developing the programme through the International Atomic Energy Agency’s milestone process. This requires work on regulation, safety, financing, skills, waste management, site assessment and public participation before construction can begin.
In December 2025, the government named KenGen as the intended owner and operator of Kenya’s first nuclear power plant. The announced concept involves an initial project of approximately 2 GW, with possible expansion to 6 GW over time. [6]
A 2-GW nuclear plant would be very large compared with Kenya’s current peak demand. Its cost, construction period and effect on grid stability would require careful planning. Kenya would also need a much stronger transmission network, a larger electricity market and firm arrangements for financing, fuel, waste and decommissioning.
Small modular reactors have received policy attention because they may be easier to match with a medium-sized grid. However, commercial SMR deployment remains limited worldwide, and Kenya would still need the same high standards of regulation, security and technical capacity.
Nuclear power is therefore a serious policy ambition rather than a near-term source of Kenyan electricity. Its eventual role will depend on demand growth, project cost and whether other technologies can meet the country’s need for stable power more quickly.
Biomass and Clean Cooking Form Kenya’s Hardest Energy Transition
Kenya’s clean electricity mix can hide the country’s continued dependence on traditional biomass. Firewood, charcoal, agricultural waste and other biological fuels remain widely used for cooking and heating, especially in rural communities and lower-income households.
Biomass and waste accounted for more than 70% of total energy supply in 2023. The government’s cooking transition strategy has estimated that about 69% of households rely on solid biomass fuels. It aims to reduce that figure sharply while expanding sustainable biomass, LPG, biogas, ethanol and electric cooking. [1] [4]
This is an economic and social issue as much as a technical one. Households may continue using charcoal or firewood because the equipment is familiar, the fuel can be purchased in small amounts, and electricity or LPG may require higher upfront spending. In some rural areas, supply chains for modern fuels remain weak.
LPG demand has grown, and the government sees cooking gas as an important step away from traditional fuels. However, Kenya imports most of its LPG, making consumers sensitive to world prices, exchange rates, storage capacity and distribution costs.
Electric cooking could benefit from Kenya’s renewable grid, especially in urban areas with reliable connections. Wider adoption will depend on electricity prices, appliance costs, wiring quality and public confidence. Biogas and improved biomass stoves may remain important in farming regions where organic material is available.
Progress in clean cooking may ultimately affect more people than the construction of one large power station. It can reduce pressure on forests, lower household air pollution and change how families spend time and money.
Affordable and Reliable Power Will Decide the Next Stage
Kenya has made major progress in adding generation and connecting customers, but access and affordability remain uneven. The 2025–2034 National Energy Policy states that more than one-quarter of the population still lacks electricity access, with the largest gaps in rural and marginalized areas. The government’s objective is universal access by 2030. [4]
Connections alone are not enough. A household or business must also be able to afford regular electricity use. High tariffs can limit demand and encourage commercial customers to install private solar systems or generators. At the same time, the power sector needs enough revenue to maintain equipment, pay generators and build new infrastructure.
Industrial growth is a central part of this debate. Large commercial and industrial consumers used almost 52% of Kenya’s electricity during the year ending June 2024. Reliable power is necessary for manufacturing, cold storage, mining, digital services, transport and agro-processing. [1]
Kenya has also linked renewable energy to green industrial development. Geothermal-powered industrial zones, electric mobility, green hydrogen and fertilizer production are among the ideas being explored. These industries could increase electricity demand and create a stronger market for new generation.
The risk is that generation, transmission and demand do not grow at the same speed. Too little capacity creates shortages. Too much contracted capacity can create financial pressure if consumers must pay for plants they do not fully use. Kenya therefore needs coordinated planning rather than a simple race to announce new projects.
The Future of Energy in Kenya
Kenya’s energy future will be built around geothermal power, a more connected regional grid and wider use of electricity across the economy. Wind, solar and hydropower will remain important, while batteries, stronger transmission lines and electricity imports can help balance the system.
Oil will continue to dominate transport in the near term, even if Turkana begins commercial production. Natural gas may remain limited unless exploration or import infrastructure advances. Coal is likely to stay focused on industry rather than national electricity generation. Nuclear power is becoming a formal long-term option, but it will require years of institutional, financial and technical preparation.
The most difficult work will take place outside large power plants. Kenya must strengthen local grids, make electricity more affordable, expand clean cooking, reduce petroleum exposure and create enough productive demand to support investment. Its renewable electricity base provides a strong starting point. The next test is turning that advantage into reliable energy for households, transport and a larger industrial economy.
