Natalie Cowling
Research Expert South Africa
Kenya predominantly generates electricity from renewable resources. Since 2012, access to electricity in Kenya has increased significantly. In 2021, Kenya managed to provide electricity to the majority share of its population, at almost 26 percent more than the overall electricity access gained in the Sub-Saharan African region. In fact, over 97 percent of Kenyans living in urban areas have electricity supply, and, the country is scheduled to provide the whole population with electricity by 2030.
Kenya's geothermal energy is sustainable
Kenya mostly produces electricity from geothermal energy sources, which are commonly found on the borders of tectonic plates. Due to the East African Rift System (EARS), geothermal energy plants in Kenya have access to hot water reservoirs below the earth’s crust. The steam from the hot water is then used to generate electricity and is available throughout the day and night and is not dependent on any weather condition, making it a reliable source of energy. Overall, annual electricity generation in the country has followed an increasing trend, albeit with monthly fluctuating tendencies.More and more residents are consuming electricity
Demand for electricity in Kenya reached its peak in 2022, with geothermal energy at the forefront of this growth, enhancing the country’s green energy agenda. The largest sector utilizing electricity in the country was the industry sector, followed by residential consumers. Although industry was the largest consumer, domestic customers connected to electricity far outweighed large commercial and industrial customers.Electricity prices are high but dynamic
Household electricity prices in Kenya were recorded as the second highest in Africa in 2023. The high costs have been attributed to various components related to the distribution of electricity, the cost of fuel, foreign exchange charges, and taxes. Domestic consumers in the country were paying an average retail price of around 33 U.S. dollars for 200 kilowatt hours of electricity in 2022. However, in 2024 the state-owned power distribution company, Kenya Power, declared a cut in its electricity tariffs by up to 14 percent. The reason for this was the strengthening of the Kenyan Shilling and the reduction in fuel prices.
