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Kenya triples its power target, aiming to expand use of nuclear and geothermal energy
Energy experts say lower bills will depend on contract, grid and pricing reforms as Kenya expands generation to meet rising demand.
Kenya has tripled its long-term renewable energy capacity target to 5,500 MW from about 1,500 MW to support industrialization and meet surging demand.
While Kenya produces 93% of electricity from renewable sources, industrial consumers pay between $0.18 and $0.23 per kilowatt-hour—far higher than about $0.03 in South Africa and Egypt.
Peter Njenga, CEO of KenGen, which produces about 60% of Kenya's power, noted that over 20% of electricity is lost to technical failures and illegal connections.
In July, lawmakers directed Energy Minister Opiyo Wandayi to develop a policy for renegotiating electricity supply agreements, including controversial "take-or-pay" clauses requiring payments for unused capacity.
Cynthia Angweya-Muhati, CEO of the Kenya Renewable Energy Association, said "the real test will be whether that additional clean generation is matched by reforms that lower electricity costs for consumers.