All markets


With a cumulative score of 1.66, Kenya ranks number 32 among emerging markets and number 60 in the global ranking.

  • Emerging markets
  • Middle East & Africa

1.93 / 5

Power score

1.03 / 5

Transport score


Buildings score

Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.


Low-carbon strategy

Net-zero goal and strategy

Kenya has set neither a net-zero emissions goal nor a long-term carbon strategy.

Nationally Determined Contributions (NDC)

Kenya is looking to cut greenhouse-gas emissions to 32% below their business-as-usual scenario of 143MtCO2eq in 2030. Their Nationally Determined Contribution, or strategy to help achieve the goals of the Paris Agreement, covers all sectors.

Fossil fuel phase-out policy

There is no fossil fuel phase-out policy in Kenya.


Power policy

Kenya is gradually increasing its non-large hydro renewables by adding solar, wind and geothermal. The government offers a feed-in tariff for these technologies and is planning an auction-based scheme, but only for wind and solar energy. In September 2020, the Energy and Petroleum Regulatory Authority (EPRA) developed the Energy Regulations 2020, along with the associated draft Regulatory Impact Statement, which will operationalize the Energy Act 2019. Auction regulations were to be available in 2021. Kenya is discussing a net-metering policy that can help an owner of a renewable power generator of 1 megawatt or less sign up with a distribution licensee or retailer, under the proposed Energy Policy and Bill.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Kenya Power introduced off-peak tariffs for commercial and industrial customers in December 2017, which are applicable during the nighttime, if a customer meets a certain threshold of monthly power consumption. Power prices in Kenya are higher compared to neighboring economies such as Ethiopia, where cheap large hydro is available, and Tanzania, where the government keeps tariffs lower than generation costs.


Power market

The liberalization of the generation market has seen more than 10 independent power producers cut into KenGen’s market share. The government has also mandated Ketraco to compete with Kenya Power on transmission. In March 2019, the president signed the Energy Bill 2017, which liberalized the electricity retail market on paper. But the market has been so far monopolized by Kenya Power in practice. It would take another year or more to set up detailed regulations. Large hydro and geothermal are the two main sources in Kenya’s generation mix.

Installed Capacity (in MW)

2012201420162018202001K2K3K MW

Electricity Generation (in GWh)

2012201420162018202005K10K GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

Kenya’s peak power demand grew 5% from 2020 to 2021, reaching 2,036 megawatts. It was driven by growing demand from residential customers that could benefit from a subsidized grid connection, and from commercial as well as industrial customers. Kenya has the largest off-grid solar market in Sub-Saharan Africa and is poised to grow further under its National Electrification Strategy launched in December 2018, which aims to attain universal access by 2022.

Land access has been a challenge for both site selection and transmission connection. Developers usually spend two years negotiating to acquire land.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

The country is aiming to increase the use of electric buses in their public transportation fleet.

EV policy

Kenya has a reduction of excise duty on electric vehicles. Finance Bill of 2019 proposed a reduction on the excise duty for all vehicles with only an electric motor for propulsion (battery electric vehicles) from 20% to 10%.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

They expect to reduce lighting in public buildings by 50%.

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

In 2020, the government published the National Energy Efficiency and Conservation Strategy, which says the government will ensure sustainable exploitation, utilization, management and conservation of the environment and natural resources. This is the document from which the government draws its actions on the improvement of energy efficiency.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

Additional insights
from BNEF

Explore more detailed information on global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.

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