Harnessing geothermal energy: The case of Kenya

Kenya is diversifying its energy mix by prioritising geothermal power to reduce its reliance on climate-vulnerable hydroelectricity. The government has established the Geothermal Development Company (GDC) to mitigate high upfront exploration risks, implemented feed-in tariffs, and leveraged carbon finance to attract investment. While facing technical skill shortages and geological challenges, Kenya aims to significantly increase geothermal capacity by 2030 to support economic growth and rural electrification.

• Kenya's heavy reliance on hydroelectricity has increased its vulnerability to climate change, specifically through drought and erratic rainfall, which makes hydropower unreliable.
• Geothermal energy is identified as the most suitable source for base load electricity in Kenya because it is indigenous, has over 95% availability, and is not affected by climatic variability or drought.
• The Government of Kenya established the Geothermal Development Company (GDC) in 2009 as a semi-autonomous state-owned entity to shoulder the financial risks of exploration, appraisal, and production drilling that the private sector cannot absorb.
• Kenya has utilised a variety of financial mechanisms to fund geothermal development, including sovereign funding, donor loans, venture capital, and carbon finance via the Clean Development Mechanism (CDM).
• To stimulate renewable energy investment, the government introduced feed-in tariffs in 2008 (revised 2010), removed value-added tax (VAT) on renewable energy materials in 2011, and implemented zero-rated import duties on related equipment.
• Significant constraints to geothermal expansion include a limited pool of domestic technical experts in geosciences and engineering, as well as high upfront costs and geological risks such as volcanic hazards.

APA

Kollikho, P., & Rivard, B. (2013). Harnessing geothermal energy: The case of Kenya. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/Kenya_InsideStory-Pr3Final_WEB1.pdf

Chicago

Kollikho, Pius, and Benoît Rivard. Harnessing geothermal energy: The case of Kenya. Climate and Development Knowledge Network, 2013. https://cdkn.org/sites/default/files/files/Kenya_InsideStory-Pr3Final_WEB1.pdf.

Wikipedia

{{cite report |last1=Kollikho |first1=Pius |last2=Rivard |first2=Benoît |title=Harnessing geothermal energy: The case of Kenya |publisher=Climate and Development Knowledge Network |date=January 2013 |url=https://cdkn.org/sites/default/files/files/Kenya_InsideStory-Pr3Final_WEB1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kollikho2013harnessing, author = {Kollikho, Pius and Rivard, Benoît}, title = {{Harnessing geothermal energy: The case of Kenya}}, institution = {Climate and Development Knowledge Network}, year = {2013}, month = jan, url = {https://cdkn.org/sites/default/files/files/Kenya_InsideStory-Pr3Final_WEB1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }