The political economy of low carbon energy in Kenya

This briefing examines the political economy of Climate Compatible Development (CCD) in Kenya, analyzing how political interests, institutional frameworks, and donor influence shape the transition to low-carbon energy. It highlights the tension between national goals for industrial growth and energy security versus the needs of the rural poor and climate mitigation targets.

• Kenya's energy strategy is characterized by a tension between renewable energy goals and the pursuit of fossil fuels. While the draft National Energy Policy recognizes renewables' potential to "enhance energy security, mitigate climate change, generate income, create employment and generate foreign exchange savings", it also emphasizes the "excitement" surrounding oil discoveries in Northern Kenya and views coal as potentially "the most reliable and easily accessible energy source for electricity generation".
• There is a significant disconnect between government energy priorities and the needs of the poor. The Least Cost Power Development Plan (LCPDP) (2011-2030) prioritizes additional capacity and energy prices for industry over energy access for the poor. The government aims to add 5000MW of capacity by 2017 from a 1500MW base, favoring technologies that offer speed and scale, such as geothermal, gas, coal, and diesel.
• Despite the market success of off-grid Solar Home Systems (SHS), they remain a niche technology, with only approximately 4.4% of total rural households possessing one by 2011. The Ministry of Energy has expressed caution regarding large-scale solar due to concerns that investors seek "quick returns rather than large scale impact" and a desire to avoid locking consumers into high-cost energy for 20 years.
• The Climate Change Action Plan (CCAP), developed in 2012 to integrate climate concerns with Vision 2030 and the LCPDP, faces implementation challenges because it lacks legislative backing. President Kibaki rejected the Climate Change Authority Bill in 2013, stating it was a private members bill that required "wider consultation".
• International donors exert significant influence over Kenya's energy priorities and policy revisions. For example, the IFC assisted in the 2013 Energy Policy revision, and the German donor KFW provides premiums on top of government tariffs to promote private sector participation in the Feed-in-Tariff (FiT) scheme.
• The 2010 Constitution's introduction of devolution has created political conflict over energy governance. While counties seek control over rural electrification planning and investor attraction, the Transitional Authority declared in August 2013 that "rural electrification would not be devolved at this stage".
• Business associations have successfully influenced policy, though such gains can be fragile. The Kenyan Renewable Energy Association (KEREA) and other groups successfully lobbied for a zero-tariff policy on solar, but this was reversed in September 2013 when a 16% VAT was reintroduced.

APA

Newell, P., Phillips, J., & Pueyo, A. (n.d.). The political economy of low carbon energy in Kenya. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2014/07/CDKN_Kenya_briefing_S.pdf

Chicago

Newell, Peter, Jon Phillips, and Ana Pueyo. The political economy of low carbon energy in Kenya. Climate and Development Knowledge Network, n.d. http://cdkn.org/wp-content/uploads/2014/07/CDKN_Kenya_briefing_S.pdf.

Wikipedia

{{cite report |last1=Newell |first1=Peter |last2=Phillips |first2=Jon |last3=Pueyo |first3=Ana |title=The political economy of low carbon energy in Kenya |publisher=Climate and Development Knowledge Network |url=http://cdkn.org/wp-content/uploads/2014/07/CDKN_Kenya_briefing_S.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newellndpolitical, author = {Newell, Peter and Phillips, Jon and Pueyo, Ana}, title = {{The political economy of low carbon energy in Kenya}}, institution = {Climate and Development Knowledge Network}, url = {http://cdkn.org/wp-content/uploads/2014/07/CDKN_Kenya_briefing_S.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }