Stakeholders’ perspectives on the effectiveness of the feed-in tariff and renewable energy auction policies in Kenya

The report assesses the deployment of Feed-in Tariff (FIT) and Renewable Energy Auction (REA) policies in Kenya, identifying significant gaps in stakeholder awareness, communication, and financial de-risking. While Kenya has strong technical capacity and a high renewable energy grid mix, the transition from FIT to REA has been hampered by bureaucratic processes and a lack of inclusive policy formulation. The authors recommend establishing a centralized body for REA bidding, enhancing stakeholder engagement with research institutions, and implementing robust financial incentives like tax credits and guarantees to attract private investment and achieve 100% renewable electricity by 2030.

• There is a significant lack of awareness and engagement regarding renewable energy policies among stakeholders; 58% of respondents showed low awareness of FIT and 80% of REA policies. Furthermore, a vast majority of key groups, including 100% of think tanks and the donor community, were not involved in formulating the REA policy.
• Financial barriers are a primary obstacle to policy deployment, with 67% of respondents citing inadequate funding and 50% citing insufficient incentives as main barriers to FIT. For REA, 41% of respondents highlighted high entry and transaction costs for investors as a significant challenge.
• Kenya possesses strong technical capacity for renewable energy deployment, contradicting some previous literature. Survey respondents indicated that policymakers now have the necessary skills to implement FIT policy.
• The transition from FIT to REA has been characterized by inefficiency, including bureaucratic delays in power-purchasing agreements (PPA) and a lack of transparency in the government's transition plan, which has been under discussion since 2017.
• Kenya's renewable energy grid mix was estimated at 87% in 2022, with geothermal (40%), hydropower (27%), wind (17%), and solar (2.5%) as the primary contributors. The country aims for 100% renewable electricity generation by 2030.
• A comparative analysis shows that Kenya's REA policy provisions are largely similar to those of Uganda, Zambia, and Ghana, suggesting that with transparent bidding and proper incentives, Kenya can successfully scale its renewable energy deployment.

APA

Kehbila, A., Kingiri, A., Kirimi, M., Ogeya, M., Okemwa, J., Sitati, C., Gitu, Y., Nzuve, L., & Osano, P. (2024). Stakeholders’ perspectives on the effectiveness of the feed-in tariff and renewable energy auction policies in Kenya. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2024/12/feed-in-tariff-renewable-energy-auction-policies-kenya-sei2024-053.pdf

Chicago

Kehbila, Anderson, Ann Kingiri, Moses Kirimi, Mbeo Ogeya, Josephat Okemwa, Cynthia Sitati, Yvonne Gitu, Lawrence Nzuve, and Philip Osano. Stakeholders’ perspectives on the effectiveness of the feed-in tariff and renewable energy auction policies in Kenya. Stockholm Environment Institute, 2024. https://www.sei.org/wp-content/uploads/2024/12/feed-in-tariff-renewable-energy-auction-policies-kenya-sei2024-053.pdf.

Wikipedia

{{cite report |last1=Kehbila |first1=Anderson |last2=Kingiri |first2=Ann |last3=Kirimi |first3=Moses |last4=Ogeya |first4=Mbeo |last5=Okemwa |first5=Josephat |last6=Sitati |first6=Cynthia |last7=Gitu |first7=Yvonne |last8=Nzuve |first8=Lawrence |last9=Osano |first9=Philip |title=Stakeholders’ perspectives on the effectiveness of the feed-in tariff and renewable energy auction policies in Kenya |publisher=Stockholm Environment Institute |date=December 2024 |url=https://www.sei.org/wp-content/uploads/2024/12/feed-in-tariff-renewable-energy-auction-policies-kenya-sei2024-053.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kehbila2024stakeholders, author = {Kehbila, Anderson and Kingiri, Ann and Kirimi, Moses and Ogeya, Mbeo and Okemwa, Josephat and Sitati, Cynthia and Gitu, Yvonne and Nzuve, Lawrence and Osano, Philip}, title = {{Stakeholders’ perspectives on the effectiveness of the feed-in tariff and renewable energy auction policies in Kenya}}, institution = {Stockholm Environment Institute}, year = {2024}, month = dec, url = {https://www.sei.org/wp-content/uploads/2024/12/feed-in-tariff-renewable-energy-auction-policies-kenya-sei2024-053.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }