Powering Kenya’s Future — Clean, Affordable and Reliable Energy for All
The financial year 2024/25 marked a pivotal chapter in Kenya’s journey towards a secure, sustainable and universally accessible energy future. Anchored in the Energy Act of 2019, the National Energy and Petroleum Policy, the updated Nationally Determined Contributions under the Paris Agreement and the country’s Vision 2030 economic blueprint, the Ministry of Energy and Petroleum pursued an integrated program of work spanning electricity generation and transmission, rural electrification, petroleum downstream regulation, energy efficiency, liquefied petroleum gas access and the early- stage development of a nuclear energy program. Each of these strands was pursued with a common purpose: to power Kenya’s economy, reduce energy poverty and decouple growth from carbon emissions.
Kenya has long been a continental leader in renewable energy. Geothermal power, harnessed from the Olkaria fields in the Great Rift Valley, continues to provide the backbone of the country’s baseload electricity supply, and the expansion of the Olkaria complex during the year added significant new capacity to the national grid. Wind energy, anchored by the Lake Turkana Wind Power project — Africa’s largest — continued to perform above projections, while the country’s solar potential, particularly in the arid and semi-arid north, is increasingly being converted into utility-scale generation capacity. Hydropower, though subject to the vagaries of rainfall variability in a changing climate, continued to contribute meaningfully to the generation mix, and the Ministry maintained a strategic focus on diversifying away from hydro dependence through the rapid scaling of geothermal and wind resources. By the close of the financial year, over 95% of Kenya’s on-grid electricity was being generated from renewable sources — a milestone of continental and global significance.
The extension of electricity access to rural and peri-urban communities remained among the Ministry’s most visible and socially transformative programs during the year. Through the Rural Electrification and Renewable Energy Corporation, the Last Mile Connectivity Program and the Kenya Off-Grid Solar Access Project, hundreds of thousands of additional households, schools, health facilities and small enterprises were connected to electricity, either through grid extension or through the deployment of solar home systems and minigrids. These connections carry consequences that extend far beyond lighting: they enable children to study at night, allow health facilities to refrigerate vaccines and power diagnostic equipment, support small businesses to extend their operating hours and enable farmers to access water pumps and agro-processing machinery. Each new connection is, in effect, an investment in human capability and economic opportunity. The petroleum downstream sector — encompassing the importation, refining, transportation, storage and retail distribution of petroleum products — was subject to significant regulatory and policy attention during the year. The Energy and Petroleum Regulatory Authority strengthened its oversight of the Open Tender System for petroleum product importation, pursued measures to improve the transparency and competitiveness of the retail fuel market, and implemented new quality standards for petroleum products. The Kenya Pipeline Company continued to expand its strategic pipeline and storage infrastructure, enhancing the country’s petroleum supply security and reducing logistical costs for landlocked neighbours served through Mombasa port. The National Oil Corporation of Kenya pursued its mandate of market stabilization and strategic reserve management, while the Government advanced its agenda of expanding access to liquefied petroleum gas as a clean cooking solution, with direct benefits for public health and forest conservation.
The Ministry also made important advances in the area of energy efficiency and conservation. The Energy and Petroleum Regulatory Authority administered the energy audit framework, through which large energy consumers across industry, hospitality and public institutions were required to commission independent energy audits and implement efficiency improvement programs. Standards and labelling requirements for electrical appliances were progressively strengthened in partnership with the Kenya Bureau of Standards. Public awareness campaigns on efficient energy use were scaled up, and the Ministry pursued the integration of energy efficiency considerations into building codes, procurement practices and public sector operations. These measures are increasingly important in the context of rising electricity demand driven by economic growth, urbanization and the electrification of previously unserved communities. At the international level, the Ministry deepened its engagement with global energy governance institutions and bilateral partners, attracting new investment commitments for clean energy projects, participating actively in negotiations on energy access and climate finance, and positioning Kenya as a model of the clean energy transition for Africa. The country’s track record in renewable energy development, its strong regulatory institutions and its stable political and economic environment continued to attract private sector interest in Independent Power Producer projects, and the Ministry worked to ensure that the terms of new power purchase agreements were bankable, equitable and consistent with the goal of minimizing costs to consumers over the long term. The Ministry’s total budget for 2024/25 was Ksh 43.2 billion, the largest energy sector allocation in the country’s history, reflecting the Government’s recognition of energy as a critical enabler of economic transformation. This report is organized in four substantive parts. Part I describes the institutional architecture of the Ministry — its mandate, vision, mission, core values, legal framework, departments, agencies and staffing. Part II presents detailed accounts of achievements and challenges across each program area, together with the status of budget measures and performance against key indicators. Part III provides a transparent account of financial performance, including expenditure analysis and revenue generated. Part IV sets out the strategic priorities that will guide the Ministry’s work in the years ahead as Kenya advances towards its goal of universal energy access and a fully decarbonized electricity system.
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