Kenya Balances Oil Expansion with Rapid Renewable Energy Growth
Economy

Kenya Balances Oil Expansion with Rapid Renewable Energy Growth

Kenya is pressing ahead with a dual energy strategy, strengthening its renewable sector and expanding its small oil industry. The East African nation has set ambitious renewable energy targets, with geothermal, hydro, wind, and solar now accounting for approximately 90% of power generation, up from 50% in 2000. Major projects like the Lake Turkana Wind Farm and widespread geothermal development have helped Kenya establish itself as Africa’s clean energy leader.

Additionally, Kenya is preparing to increase crude oil exports. After its initial small-scale shipment in 2019, the government targets commercial exports by 2026. The South Lokichar oilfield is expected to produce 60,000 to 100,000 barrels per day, with recoverable reserves estimated at 560 million barrels over 25 years. Tullow Oil and Gulf Energy Ltd signed a $120 million deal earlier this year.

Efforts to improve energy availability have made remarkable progress, with coverage rising from 37% in 2013 to 79% in 2023. Kenya now leads East Africa in solar home system sales, with one-fifth of households adopting solar power.

Looking ahead, Kenya’s National Energy Policy 2025-2034, which international partners fund, intends to modernise, reduce transmission losses, and achieve universal clean cooking access by 2028.