The government redirected 3.4 billion shillings from the fuel levy to help National Oil repay debts to KCB, Dalbit, and Gulf Energy, with the company’s KCB loan ballooning to 7.5 billion shillings. This move highlights ongoing financial struggles in the energy sector.
Kenya Power Smart Meter Billing Issues:
Reports surfaced on July 2, 2025, of increased electricity charges for households following Kenya Power’s smart meter rollout, raising concerns among consumers about billing accuracy.
After Kilifi residents rejected a proposed nuclear power plant, the Kenyan government announced plans to relocate the 500 billion shilling project to Bondo, Siaya County. The project, targeting 2027, aims to attract investors and promote clean energy.
Solar Industry at Risk from the Finance bill 2025
The Kenyan government's proposed 16% VAT on solar equipment could potentially increase the cost of basic solar home systems, potentially leading to 10,000 job losses and a 20% market shrink.
Privatization of Kenya Petroleum Refineries Ltd:
The Kenyan government is planning to transfer assets and 370 acres of land belonging to Kenya Petroleum Refineries Ltd, a subsidiary of Kenya Pipeline Company, to Asharami Synergy, a subsidiary of Nigeria’s Sahara Group.
World Bank has set aside Sh30 billion to support energy projects in Kenya to boost power infrastructure and access. The budget reportedly helps to promote the energy segment of the country.
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Kenya's geothermal power development has led to significant land acquisitions in Ol Karia,
a region historically inhabited by the Maasai community. This has resulted in the displacement of local populations.
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Affordability of cleaner fuels is a big challenge in Kenya.
Firewood remains the primary cooking fuel in Kenya for half of the population, followed by liquefied petroleum gas (LPG), charcoal and kerosene, with significant disparities between urban and rural households.
For Kenya to have sustainable growth and universal access to energy, it will be essential to address grid losses, boost competition, and make sure infrastructure investment is made.
Kenya's leadership in off-grid solar adoption is evident, with the country accounting for nearly three-quarters of all solar home system sales in East Africa in 2023.
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The Kenya Electricity Transmission Company (Ketraco) is set to start a power dispatch hub project in May 2025, funded by L'Agence Française de Développement and the French Ministry of Finance. This project will build a backup station in Suswa and enhance power grid management.
An average Kenyan consumer frequently experiences long power outages. According to EPRA, the average duration of power outages – was more than 100hours/year in 2023 (the global median is around3).
Days after meeting President Ruto and Mudavadi, Vietnam Gas boss Doanh Chau delivered a diplomatic jab: Kenya talks big but doesn’t build.
All microphones, no machinery.
“No serious execution culture”
The Kenya National Cooking Transition Strategy (KNCTS ) envisions that by 2050, half of Kenyan households will use LPG for cooking. To make this happen, the government is removing the value-added tax (VAT) on LPG and directing all public institutions to transition to the fuel.
Firewood remains the primary cooking fuel in Kenya for half of the population, followed by liquefied petroleum gas (LPG), charcoal and kerosene, with significant disparities between urban and rural households.
Kenya has made substantial progress in increasing the clean cooking access rate from only 10% in 2013 to 31% in 2023, but 69% of households, mainly concentrated in rural areas, still rely on polluting fuels.
Kenya’s electricity prices among the highest in Africa, driven by inflation, the removal of subsidies, and a depreciated currency driving up inflation. Affordability remains a major challenge.
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Kenya's electricity networks face substantial losses, estimated at 23% in 2023, due to technical failures, theft, and billing anomalies, causing frequent outages. Efforts to curb these losses and improve system efficiency, such as smart management systems, are being considered.