Policy coherence for a just energy transition in Kenya’s electricity sector

The document identifies that while prioritizing renewable energy investments offers the highest synergetic potential for economic growth and emission reductions in Kenya, significant trade-offs exist between climate goals and industrialization. It highlights a critical conflict between the deployment of renewable energy and electricity affordability, noting that high tariffs driven by infrastructure investments hinder equity. The brief also identifies institutional barriers, including public debt, corruption, and skewed decision-making representation, as primary drivers of policy incoherence.

• Prioritizing investments in grid and off-grid renewable power generation, alongside battery storage and infrastructure upgrades, provides the highest synergetic potential for reducing emissions, accelerating industrialization, creating jobs, and increasing energy access.
• A significant policy conflict exists between the goal of increasing coal power generation and the objective of reducing greenhouse gas emissions in the energy and manufacturing sectors, although coal could potentially support electricity capacity and job creation in mining regions.
• Kenya's equity goals for industrialization and youth job creation may conflict with climate mitigation targets, as increased GDP and motorized transport are expected to drive higher fossil fuel consumption in the industry and transport sectors.
• The transition to renewable energy has created a trade-off regarding affordability; high electricity tariffs, driven by the need for renewable investments and grid stability (thermal backup and battery storage), restrict progress on equity and demand-side climate goals.
• Institutional barriers driving policy incoherence include limited national resources, increasing public debt, high levels of corruption, and the misappropriation of allocated funds, which delay flagship development projects.
• International financial shifts influenced Kenya's energy policy, specifically the move away from coal following the withdrawal of support for the Lamu Coal project by the Africa Development Bank and the Industrial and Commercial Bank of China (ICBC).
• Decision-making in the energy sector is skewed toward those with resources and information, leading to the exclusion of vulnerable groups and a lack of attention toward workers in fossil fuel and biomass sectors (such as charcoal vendors) who may face job losses.

APA

Muhoza, C., Osano, P., & Dzebo, A. (2026). Policy coherence for a just energy transition in Kenya’s electricity sector. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2026/01/electricity-policy-kenya-brief-sei2026-001.pdf

Chicago

Muhoza, Cassilde, Philip Osano, and Adis Dzebo. Policy coherence for a just energy transition in Kenya’s electricity sector. Stockholm Environment Institute, 2026. https://www.sei.org/wp-content/uploads/2026/01/electricity-policy-kenya-brief-sei2026-001.pdf.

Wikipedia

{{cite report |last1=Muhoza |first1=Cassilde |last2=Osano |first2=Philip |last3=Dzebo |first3=Adis |title=Policy coherence for a just energy transition in Kenya’s electricity sector |publisher=Stockholm Environment Institute |date=January 2026 |url=https://www.sei.org/wp-content/uploads/2026/01/electricity-policy-kenya-brief-sei2026-001.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{muhoza2026policy, author = {Muhoza, Cassilde and Osano, Philip and Dzebo, Adis}, title = {{Policy coherence for a just energy transition in Kenya’s electricity sector}}, institution = {Stockholm Environment Institute}, year = {2026}, month = jan, url = {https://www.sei.org/wp-content/uploads/2026/01/electricity-policy-kenya-brief-sei2026-001.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }