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

This policy brief by the Stockholm Environment Institute examines the drivers and outcomes of policy coherence regarding Kenya's transition to a renewable electricity sector. It identifies critical synergies between renewable energy investment and socio-economic growth, while highlighting significant trade-offs between industrialization goals, coal power ambitions, and climate mitigation targets. The document argues that institutional barriers, resource constraints, and power dynamics currently hinder a just energy transition.

• Prioritizing investments in grid and off-grid renewable power generation, alongside battery storage and infrastructure upgrades, offers the highest synergetic potential for Kenya. Such investments can simultaneously reduce emissions, accelerate industrialization, create jobs, increase energy access, and reduce social inequalities for vulnerable groups including women, youth, and people with disabilities.
• 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. While coal could potentially increase electricity capacity and support job creation in mining regions, it contradicts Kenya's climate ambitions and the Paris Agreement.
• Kenya's equity goals for industrialization and youth job creation may conflict with climate mitigation targets. Increased economic growth and per capita GDP growth are expected to drive higher fossil fuel consumption in the transport and industry sectors, necessitating simultaneous emission reduction measures to meet a 2030 target of 32% reduction relative to the business-as-usual scenario.
• The transition to renewable energy has created a trade-off regarding electricity affordability. High tariffs, driven by investments in renewables and the need for thermal backup and battery storage, restrict progress on equity and climate mitigation for consumers. This has led some large industrial and commercial users to leave the grid and generate their own power using fossil fuels, renewables, or bioenergy.
• Policy incoherence is driven by several institutional and financial barriers, including limited national resources, increasing public debt, and high levels of corruption. These constraints lead to insufficient funding for social equity, gender mainstreaming, and clean cooking technologies, while delays in funding flagship projects hinder progress.
• International financial shifts significantly influenced Kenya's energy policy. The move away from coal was accelerated by a global decline in coal financing and the withdrawal of support for the Lamu Coal project by the Industrial and Commercial Bank of China (ICBC) and the Africa Development Bank.
• Decision-making in the energy sector is skewed toward those with resources and information, marginalizing vulnerable groups. Additionally, there has been little attention paid to the potential job losses in the biomass and fossil fuel sectors, such as for charcoal vendors and petrol station attendants, during the transition.

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} }