Achieving a just energy transition in Kenya’s electricity sector: exploring the role of policy coherence

The report finds that while Kenya has successfully increased its renewable electricity generation to 87% by 2022, the transition lacks policy coherence regarding affordability and equity. High electricity tariffs, driven by infrastructure investments and a distribution monopoly, hinder industrial competitiveness and limit energy access for vulnerable groups. The analysis identifies a significant trade-off between coal-based industrialization goals and climate mitigation targets, though the latter has gained dominance due to international financial pressure. Institutional barriers, including corruption and limited resources for social equity, further impede a just transition.

• Prioritizing investments in grid and off-grid renewable power generation is identified as the policy objective with the highest synergetic potential, as it can simultaneously reduce emissions, accelerate industrialization, create jobs, and increase energy access.
• There is a fundamental conflict between the goal of increasing coal power generation and the objectives of reducing greenhouse gas emissions in the energy and manufacturing sectors.
• Despite the increase in renewable electricity generation from 75% in 2017 to 87% in 2022, the transition has not ensured equitable outcomes due to high electricity costs for consumers.
• High electricity tariffs are limiting Kenya's industrial competitiveness, leading some businesses to relocate to other East African countries and prompting large industrial users to develop their own 'captive' power facilities.
• Institutional barriers, specifically high levels of corruption and limited financial resources for social equity and gender mainstreaming, act as key drivers of policy incoherence.
• The shift away from coal development in Kenya was heavily influenced by international development partners and the withdrawal of funding from institutions like the Africa Development Bank and the Industrial and Commercial Bank of China (ICBC).
• The electricity distribution market is characterized by a monopoly held by the Kenya Power Lighting Company, which lacks market-driven incentives for efficiency and contributes to high tariffs through system losses and 'take or pay' agreements.

APA

Dzebo'], [. M. '. O. '. (2025). Achieving a just energy transition in Kenya’s electricity sector: exploring the role of policy coherence. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2025/11/electricity-policy-coherence-kenya-sei2025-058.pdf

Chicago

Dzebo'], ['Cassilde Muhoza', 'Philip Osano', 'Adis. Achieving a just energy transition in Kenya’s electricity sector: exploring the role of policy coherence. Stockholm Environment Institute, 2025. https://www.sei.org/wp-content/uploads/2025/11/electricity-policy-coherence-kenya-sei2025-058.pdf.

Wikipedia

{{cite report |last1=Dzebo'] |first1=['Cassilde Muhoza', 'Philip Osano', 'Adis |title=Achieving a just energy transition in Kenya’s electricity sector: exploring the role of policy coherence |publisher=Stockholm Environment Institute |date=November 2025 |url=https://www.sei.org/wp-content/uploads/2025/11/electricity-policy-coherence-kenya-sei2025-058.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dzebo2025achieving, author = {Dzebo'], ['Cassilde Muhoza', 'Philip Osano', 'Adis}, title = {{Achieving a just energy transition in Kenya’s electricity sector: exploring the role of policy coherence}}, institution = {Stockholm Environment Institute}, year = {2025}, month = nov, url = {https://www.sei.org/wp-content/uploads/2025/11/electricity-policy-coherence-kenya-sei2025-058.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }