KenInvest
KenInvest
KenInvest
KenInvest
KenInvest
KenInvest
KenInvest

 

Overview


Introduction

In Kenya, energy is identified as one of the infrastructural enablers of the three pillars of Vision 2030, with an expected surge in energy use within the commercial sector on the road to 2030. As a result, the government has identified the need for generation of additional energy and efficiency in energy consumption as priorities in Vision 2030. In order to promote renewable energy projects like wind and solar energy development programme on a commercial scale, the Government of Kenya (GoK) has also introduced Feed-In Tariff (FIT) policy to attract private investments.

The policy provides a fixed tariff for electricity generated in grid connected mode
The main sources of energy are wood fuel, petroleum and electricity accounting for 69%, 22%, and 9% of total energy use1 respectively. More precisely, 67.5% of electricity is generated using renewable energy sources which are predominantly Hydro with 47.8%2 and Geothermal with 12.4% respectively, while 32.5% is from fossil fuels. The total electricity which is generated is shared by less than 20% of population of the country, and more than 80 percent of the population remains without access to the electricity.

Recent Developments in Kenya Energy Sector

Discovery of Oil in Turkana County
In 2012, the Government announced the discovery of oil in Turkana County. This followed extensive exploratory efforts in areas such as Lamu and Isiolo. Efforts to establish the commercial viability of the oil find are underway, with an expected timeline exceeding three years before the country can become an oil producer. The discovery has been described as a major breakthrough that will contribute significantly to the meeting the country's energy requirements
Confirmation of Coal Deposits

The confirmation of commercially viable deposits of coal in the Mui Basin, in Mwingi East, Mwingi Central and Mutitu Districts means that Kenya is set to join the coal mining nations of the world. This discovery of coal is expected to go a long way in filling the energy deficit in the country

Geothermal Power Development
Kenya is endowed with vast geothermal potential and is recognized as one of the leading generators of geothermal power in Africa; it is estimated that the country has 7,000 MW – 10,000 MW of geothermal potential and it is currently Africa's largest geothermal producer with 210 MW of capacity. The discovery of commercially exploitable geothermal steam in Menengai contributed to the country's energy portfolio that will drive the Kenya toward the achievement of Vision 2030. The Kenyan Government has recently initiated the Scaling-up Renewable Energy Program (SREP) investment plan in line with national renewable energy development strategy

Investment opportunities

  1. Generation of energy using renewable sources such as wind, geothermal and solar sources - Feed in Tariff (FIT) is a policy strategy which aims to increase investment in renewable energy technologies. The country plans to increase electricity installed capacity by 5,538 MW by 2017
  2. Development of diesel plants and hydropower
  3. Drilling and Steam Field Development of Wells for geothermal
  4. Construction of Pipeline and Storage Facilities for petroleum products
  5. Exploration of petroleum deposits in other potential regions of the country