Industry Analysis

Kenya has continued to strengthen its position as a continental leader in green energy, with renewable sources accounting for 80.17% of the electricity mix in the year under review. Geothermal energy remained the leading source at 39.51%, followed by hydro at 24.21%, wind at 13.18%, and utility-scale solar at 3.27%. This remarkable energy mix underscores our commitment to sustainability and resilience in the sector.

Electricity demand continued to grow, with the country recording a new peak demand of 2,316.2 MW on 12th February 2025, representing a 6.38% increase from the previous financial year. Consumption rose across all categories, large commercial and industrial, small commercial, domestic, street lighting, and electric mobility, each achieving all-time highs, a clear indicator of Kenya’s expanding economic activity and electrification progress. Regionally, Kenya reinforced its role as a power hub through the completion of the 210-kilometer 400kV transmission line to Tanzania in December 2024. With this milestone, Kenya is now interconnected with the grids of Ethiopia, Uganda, and Tanzania, enabling trade and advancing the vision of the Eastern Africa Power Pool. On tariffs, the Authority continued to promote efficiency and innovation through structured pricing regimes. The Time-of- Use (TOU) tariff, designed to flatten the demand curve, reached a cumulative 180.3 GWh in consumption, saving beneficiaries Ksh. 1.438 billion in the review period. Similarly, the e-mobility tariff, introduced in 2023, has spurred a remarkable uptake in clean transport, with consumption rising 300% to 5.04 GWh. As of June 2025, 69 customers were billed under this category. The petroleum sector has equally undergone significant restructuring, with Kenya’s petroleum blocks reconfigured in line with exploration potential and international best practice. The reconstitution created 50 high-potential blocks, particularly in the transition zone, offshore Lamu, and the Anza Basin, signaling new opportunities for investment and exploration.

This report provides a comprehensive overview of these milestones and the broader energy landscape, offering stakeholders the insights needed to make informed decisions.