Kenya: Clean Energy and Oil Push

Kenya expanded its renewable energy sector in recent years, diversifying beyond fossil fuels to strengthen energy security.

The country launched a national energy plan and multiple renewable projects to advance its clean energy targets while also building oil production.

Kenya started small-scale crude exports in 2019 and aims to begin commercial exports in 2026 after repeated delays.

Tullow Oil failed to secure investors for the South Lokichar oilfield after TotalEnergies and Africa Oil withdrew two years ago.

This setback forced Tullow to seek financing alone for a pipeline to transport crude from the landlocked north.

Earlier this year, Tullow agreed to sell all its Kenyan interests to Gulf Energy Ltd for at least $120 million and is expected to start exports next year.

The South Lokichar project could produce 60,000 to 100,000 barrels per day, with 560 million barrels recoverable over 25 years.

The government plans to auction 10 oil and gas blocks for exploration in September.

Kenya continues expanding renewable energy sources to secure its energy future, given the underdeveloped oil sector.

The government initially targeted 100% renewable power by 2020 but extended the deadline to 2030.

The IEA reports that Kenya is on track to achieve universal electricity access by 2030 through clean energy expansion.

Electricity access rose from 37% in 2013 to 79% in 2023, with urban areas reaching full coverage.

The 2015 Last Mile Connectivity Project drove much of this progress.
By year-end, Kenya plans to connect another 280,000 households nationwide.

Off-grid solar projects accelerated access growth, particularly in rural regions.
Kenya accounted for nearly three-quarters of East Africa’s solar home system sales in 2023, according to the IEA.

One in five households now relies on solar mini-grids or standalone systems.
Mary Burce Warlick of the IEA stated that Kenya demonstrates how strategic clean energy deployment can transform the lives of millions of vulnerable people.

The government recently launched a National Energy Policy with input from the IEA and other partners.

The Draft National Energy Policy 2025–2034 incorporates recommendations from the IEA Energy Policy Review.

Renewables—geothermal, hydro, wind, and solar—supply nearly 90% of Kenya’s power, compared with 50% in 2000.

The country hosts the Lake Turkana Wind Project, Africa’s largest wind farm.
Geothermal energy provides about one-third of national electricity capacity.

Millions of households, mainly rural, still depend on firewood, charcoal, and kerosene.

The government seeks to eliminate this through the Kenya National Cooking Transition Strategy, which targets universal clean cooking by 2028.

Kenya also plans to modernize and expand its grid under 2024 regulations that open transmission and distribution to private investment.

In 2023, about 23% of electricity was lost to technical faults, theft, and billing problems.
Smart grids and stronger management are expected to reduce these losses.

In March, Kenya tendered 80 MW of solar capacity through two projects in the south.
The French Development Agency announced in August 2024 that it would fund a 42.5 MW solar plant northeast of Nairobi.

The International Renewable Energy Agency reported that Kenya had 358 MW of solar capacity by the end of 2023.

In July, BII, Norfund, and FMO invested $156 million in Sun King’s off-grid solar operations.

This financing is expected to deliver 1.4 million solar home systems in rural areas.
Sun King co-founder Anish Thakkar explained that the model succeeds because millions of customers make small, steady, and predictable payments.

source: oilprice.com