Country: Kenya

Socio- economic framework

Year Unit Value
Population 2014 million 44.861 Rural Population
Urban Population
Demographic growth 2014 % 2.7%1
Surface 2014 km2 580 3701
GDP 2014 M US$ 60 9401
GDP per capita 2014 US$ per cap 1 3581 26%
GDP growth 2014 % /year 5.3%1
Fragile country status 2014 Index No 2
74%
Governance 2014 Index 58.83
Governance variation over 5 years 2014 Index 5.33
Human development 2013 Index 0.5354

Consumed Energy (million toe=11.65 MWh)

Year Unit Value
TPES Renewa
Total Primary energy Supply (TPES) 2013 Million toe 21.495 bles
Fossil
Primary energy Supply - Biomass 2013 Million toe 15.525 18% 10%
Primary energy Supply - Fossil 2013 Million toe 3.905
Fraction of Non-Renewable Biomass 2009 % 64%6
Primary energy Supply - Renewable
2013 Million toe 2.075
(incl.hydro)
Primary energy - Net Import electricity 2013 Million toe 0.0045 Biomass
Primary energy - Net import hydrocarbon 2013 Million toe 4.845 72%
Total Final Energy Consumption 2013 Million toe 13.995
Final energy - Modern BLEN(*) 2013 Million toe 0.735
Final Energy - Electricity 2013 TWh 7.285
Electricity
Installed Capacity Year Unit Value
RES
Hydro 30%
Peak demand 2014 MW 15128
38%
Installed connected capacity Fossil 2014 MW 21738
Thermal installed capacity (fossil fuels) Fuels 2014 MW 6958
Hydro installed capacity 32% 2014 MW 8218
Renewable installed capacity (ex.hydro) 2014 MW 6578
IPP/installed capacity Electricity Generation 2015 % 30%10
Total Electricity production Hydro 2014 GWh 94248
Electricity generation from fossil fuels 37% RES 2014 GWh 17678
Fossil
44%
Electricity generation from hydro Fuels 2014 GWh 34668
19%
Electricity generation from renewable 2014 GWh 41118
Electricity consumption including self-consumption and losses 2013 GWh 89249
Average consumption per capita 2013 kWh per cap 1709
Total losses (technical and non-technical) as a production % (**) 2013 % 18%9
Total losses (technical and non-technical)(**) 2013 GWh 15969
Imports (+) exports (-) 2014 GWh 45.38
Global electrification rate 2012 % 23%1
Urban electrification rate 2012 % 58%1
Rural electrification rate 2012 % 7%1
HV lines(+) 2014 km 39478
MV lines(+) 2014 km 5285010
LV lines(+) 2014 km To be confirmed

Renewable energy/global electricity production (incl. hydro) 2014 % 80.4%8

Connections to the LV network 2014 Thousands 27668
Average tariff/social 2015 US$c/KWh 17.5511
Ratio cost/tariff 2014
Version dated 18/12/15

To be confirmed

The EU's Technical Assistance Facility for the Sustainable Energy for All initiative–Eastern and Southern Africa
Project financed by the European Union and implemented by a consortium led by Atkins
Legal, regulatory and institutional framework
Energy policy - Draft National Energy and Petroleum Policy August 2015, Ministry of Energy and Petroleum (MoEP).
- Feed-in-Tariffs Policy (MoPE) 2nd Revision 2012
Energy laws Geothermal Resources Act (No. 12 of 1982)
The Energy Act (No. 12 of 2006).
The Energy Bill 2015 (not passed through parliament yet).
The Petroleum Bill 2015 (not passed through parliament yet).
Enforcement texts Legal Notice No. 43/2012 “Solar Water Heating Regulations”; Legal Notice No. 44/2012 “Electricity Licensing
Regulations”; Legal Notice No. 102/2012 “Energy Management Regulations”; Legal Notice No. 103/2012 “Solar
Photovoltaic Systems Regulations”; The Petroleum products strategic Stock Regulations (2008), The LPG
Regulations (2009), The Minimum Operation Stock Regulations (2010), the Petroleum pricing regulations (2010),
the Petroleum Regulation Levy regulations amendment (2008); Legal Notice No. 69/2010 The gasoline-alcohol
blending regulations (2010); Legal Notice No. 31/2002 the petroleum amendment rules (2002).
Electricity/energy regulator Energy Regulatory Commission (ERC) mandated by the Energy Act 2006 to regulate the electricity sector,
monitor fair competition in the energy sector (including downstream petroleum sector) protect consumer rights,
maintain a list of accredited energy auditors, maintain energy data and prepare an indicative national energy plan.
Electricity operators Eleven licensed power producers in 2015, one of which is Kenya Electricity Generating Company KenGen (the
largest power producer with 68% of the installed capacity); Kenya Electricity Transmission Company (KETRACO)
the state owned transmission network operator; Kenya Power and Lighting Company (KPLC) (50.1% owned by
the state) which owns and operates most of the electricity distribution system.
Rural electrification body Rural Electrification Authority (REA), established under the Energy Act (2006) for enhancing the rural
electrification in the country.
Renewable energy body The Renewable Energy Department in ERC is responsible for leading the planning, development, implementation
and promotion of RES. The Geothermal Development Company is responsible for the exploitation of the
geothermal resources.
Energy conservation body The ERC is responsible for leading the planning, development, implementation and promotion of energy
efficiency through planning, development of standards and regulations, compliance and enforcement.
Energy objectives The objectives in the Draft National Energy and Petroleum Policy (2015) include: increase access to affordable
energy, promote indigenous sources, promote energy efficiency and conservation, encourage electricity
generation from renewables, develop a natural gas master plan; achieve 1.9GW geothermal power plants by
2017 and 5.5GW by 2030; exploit the estimated 1449MW of large hydro, and the potential of small hydro, wind
and PV; develop the transmission network and the interconnection capacities with Uganda and Tanzania. The
nuclear development programme foresees the first unit of 1GW to operate by 2024. SE4All Action Agenda targets
include: 19GW of installed capacity by 2030, of which 26% will be geothermal, 9% will be wind and 9% hydro;
connection to the electricity grid for 65% of urban population by 2022 and 40% rural by 2020 with 100%
electrification by 2030; 18% cooking with LPG by 2020 and 100% cooking with “modern energy” by 2030; reduce
distribution losses below 15% by 2020 and to 9.3% by 2030.
Feed-in tariff policy Yes; Feed-in-Tariffs Policy (MoEP) 2nd Revision 2012.
Metering policy for billing Yes.
Public procurement (auctions) No.
Unbundling Yes. There are eleven licensed generators; KETRACO is the transmission system operator and Kenya Power the
distribution company.

Private sector environment

Sector private bodies IPPs. Kenya Renewable Energy Association (KEREA) an independent non-profit association for the development
of renewable energy.
Public incentives The feed-in tariff policy offers incentives for RES; feed-in tariffs are in USD eliminating the risk of exchange rates.
There are exemptions for custom duties and VAT on equipment for power plants.
Financial grants No.
IPPs In 2015 there were ten licensed IPPs: Tsavo, Iberafrica, Thika Power, OrPower4, Mumias Sugar, Rabai. Imenti
Tea, Gikira hydro (PTS), Triumph diesel, Gulf power and KenGen (state owned) as well as a number of isolated
grids (25.8MW total).
PPPs Kenya Power is owned 50.1% by the state and remaining is owned by the private sector (there was a two year
management contract in 2005). The state owned Geothermal Development Company (GDC) exploits steam and
provides it to power plant developers. The Kenya Petroleum Refineries Lid is owned 50% by the state and 50%
by Essar Energy Overseas Limited.
Business index Listed 108 out of 189 countries by the WB “Ease of doing Business Index” in 201512.

International Cooperation in the energy sector

Joint Declaration EU-country No.
Energy as a focal sector for 11th Yes. The sustainable infrastructure focal sector includes the objective of developing more efficient and
EDF environmentally friendly energy services that are accessible to all.
Donors active in the country EU, AfD, KfW, GIZ, USAID, IDA, ADB, UNEP, UNDP, EIB, SIDA, DANIDA, CIDA, the Governments of
Switzerland, Finland, Belgium, Italy, Spain, Saudi Arabia, Abu Dhabi, Japan, India, China, UK.
Coordination among donors The “Aid Effectiveness Kenya” is part of the External Resources Dept. of the National Treasury, aiming at
coordinating development partner’s activities and leverage their support to larger scales.

Main issues and opportunities 13

 Low access to electricity and modern energy sources.
 Need for high investments in new electricity generation capacity to cover the increasing demand
 Need to invest in the transmission and distribution infrastructure.
Version dated 18/12/15

 Inadequate capacity for integration of intermittent power generation in the national grid.
 Unsustainable use of biomass.

The information and views set out in this fiche are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European
Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.
  Inadequate LPG infrastructure for cylinder filling, storage and distribution.
 High renewable energy potential including geothermal and hydro.

(*) BLEN includes Biogas, LPG, Electricity and Natural Gas.

(**) The losses reported are only technical losses.
(+) For the interconnected system only where HV is 220kV and 132kV, MV is 66kV and 33kVand 11kV, LV is 220-240V or 415V.

Sources:
1 World Bank; Available: http://data.worldbank.org/country/kenya, [Accessed on 11/11/2015]. The source of the share of rural and urban population is the CIA World
Factbook available at: https://www.cia.gov/library/publications/resources/the-world-factbook/geos/ke.html [Accessed on 11/11/2015].
2 Kenya is not included in the list of fragile countries of the World Bank Country Policy and Institutional Assessment (CPIA) Score; Available:
http://www.worldbank.org/content/dam/Worldbank/document/Fragilityandconflict/FY14FragileSituationList.pdf, [Accessed on 11/11/2015].
3 Ibrahim Index of African Governance (IIAG), Available: www.moibrahimfoundation.org/interact, [Accessed on 11/11/2015].
4 UNDP - Human Development Reports, Available: http://hdr.undp.org/en/countries/profiles, [Accessed on 11/11/2015].
5 International Energy Agency (IEA), Available: http://www.iea.org/statistics/statisticssearch/report/?year=2013&country=KENYA&product=Balances, [Accessed on
11/11/2015].
6 Bailis,R., Drigo, R., Ghilardi, A. & Masera,O. “The carbon footprint of traditional woodfuels”, Nature Climate Change 5: 266-272, 2015.
8 Draft National Energy and Petroleum Policy, MoEP, June 2015.
9 International Energy Agency (IEA), Available at: http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=KENYA&product=ElectricityandHeat,
[Accessed on 11/11/2015].
10 Kenya Power, Annual report and financial statements, Financial year ended 30 June 2015, Available at:
http://kplc.co.ke/img/full/jSsYVq47rObE_KENYA%20POWER%20ANNUAL%20REPORT%202015%20-%20FOR%20WEB.pdf , [Accessed on 02/12/15]
11 Data for January 2015 according to the Energy Regulatory Commission available at:
http://www.erc.go.ke/index.php?option=com_content&view=article&id=122&Itemid=550, [Accessed on 04/12/15] with an exchange rate of 1USD=102.06KShs.
12 World Bank, Available: http://data.worldbank.org/indicator/IC.BUS.EASE.XQ, [Accessed on 11/11/2015].
13 The main issues and opportunities were taken from the Kenya SE4All Action Agenda (March 2015 draft).

Version dated 18/12/15

The information and views set out in this fiche are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European
Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.
Country: Kenya

ANNEX 1 – PRIMARY DATA STATISTICS AND ACCESS TO MODERN ENERGY SOURCES

SE4ALL Objectives Indicators Unit Statistics Target

Total Rural Urban Total

1990 2000 2010 2012 2012 2012 2030
Universal access to Electricity access % of population 11 15 23 23 7 58 100%1
modern energy Non-solid fuels access % of population 19 20 17 16 3 49 100%

1990- 2010-
1990 2010 2012 2010 2012 2030
Improvement rate of Primary energy
Doubling energy efficiency intensity CAGR % 0.14 -2.54
Cumulated energy savings PJ 457 149
Ratios primary energy/final energy 70.2 65.8 (2 )
Primary energy intensity level MJ/$2011 PPP 9.5 9.7 9.3 (3 )

1990 2000 2010 2012 2030

Doubling the renewable Total final consumption PJ 529 556
energy share RE share in the total consumption % 77.7 81.8 77.1 78.5
RE share in the total electricity generation % 69.5 75.2 (4 )
RE share in the total electricity production
capacity % 58.1 57.6
Sources:
SE4ALL Progress towards Sustainable Energy 2015, Global Tracking Framework (GTF), Available: http://www.se4all.org/tracking-progress/ [Accessed on 24/8/2015].
SE4ALL Global Tracking Framework 2013, Available: http://www.se4all.org/tracking-progress/ , [Accessed on 24/08/2015].
Note: Figures used in this annex are those of the GTF which uses the same definitions for all countries. However, these definitions are not always those used in the other
parts of the fiche.

1
SE4All Action Agenda for Kenya, 2015
2
This indicator is not available in the GTF 2015 publication.
3
According to the SE4ALL Action Agenda the target is to reach 0.12 toe/1000USD GDP (PPP) by 2030.
4
The Action Agenda foresees additional 450MW of small hydro, 6GW of wind, 800MW of PV, 2.2GW of CHP, 450MW of MSW and 20MW of biogas by 2030 and a total of 5.5GW geothermal plants
installed.

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Country: Kenya

ANNEX 2 – INSTITUTIONAL AND POLITICAL FRAMEWORK

N : not achieved F:foreseen D : drafted AP : Approval national process A: adopted I : implemented S : Success story

P OLICY ASPECTS N F D AP A I S COMPLEMENTARY ASSESSMENT ELEMENTS

1 Energy sector
The Draft National Energy and Petroleum Policy of June 2015 developed by the Ministry of Energy and
Petroleum (MoEP) is the overarching policy text. The objectives include increased access to affordable energy,
promotion of indigenous sources, promotion of energy efficiency and conservation, encouragement of electricity
generation from renewables, development of a natural gas master plan, achievement of 1.9GW geothermal
Political objectives power plants by 2017 and 5.5GW by 2030; exploitation of the estimated 1449MW of large hydro, and the

Energy laws potential of small hydro, wind and PV; development of the nuclear programme with the first unit of 1GW
operational by 2024; development of the transmission network and the interconnection capacities with Uganda
and Tanzania. The energy related laws include the Geothermal Resources Act (No. 12 of 1982), The Energy Act
(No. 12 of 2006), the Energy Bill 2015 (not passed through parliament yet), the Petroleum Bill 2015 (not passed
through parliament yet).

Energy Regulatory Commission (ERC) mandated by the Energy Act 2006 to regulate the electricity sector,
monitor fair competition in the energy sector (including downstream petroleum sector) protect consumer rights,
Energy regulation authority  maintain a list of accredited energy auditors, maintain energy data and prepares an indicative national energy
plan.
The Cotonou Partnership Agreement regulates the relations between Kenya and the EU. The 11th EDF includes
Partnership agreement with
the EU  energy under the sustainable infrastructure focal sector with the objective of developing more efficient and
environmentally friendly energy services that are accessible to all.
No. Kenya is not included in the list of fragile countries of the World Bank Country Policy and Institutional
Fragile country status Assessment (CPIA) Score. However, Kenya is included as a fragile state in the “States of Fragility 2015” report 5
of the OECD and is listed in the “Alert” group of countries in the Fragile States Index of the Fund for Peace 6.

2 Engagement and preparation for SE4ALL

Opting-in  Kenya opted-in in 20127.
Gap analysis  The Stock Taking report and Gap Analysis was completed in June 2013.
Action Agenda  Kenya’s Action Agenda was drafted in March 20151.

5 “States of Fragility 2015, Meeting post-2015 ambitions” OECD, 2015 available at http://www.oecd-ilibrary.org/development/states-of-fragility-2015_9789264227699-en [Accessed on 11/11/2015].
6 Fragile States Index 2015, Fund for Peace, available at http://fsi.fundforpeace.org/ [Accessed on 11/11/2015].
7 http://www.se4allforum.org/sites/default/files/SE4All%20Country%20Action%20in%20Africa%20-%20The%20Kenyan%20Experience.pdf

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Country: Kenya

NREAP  There is the draft “Scaling up Renewable Energy Program” Investment plan (Draft 2011).
NEEAP 
Investment Prospectus  The SE4All Investment prospectus was drafted in March 20158.
SE4ALL Secretariat  There is a SE4All focal point in the MoEP.

3 Private sector participation

Kenya has a generally positive investment climate and the legal environment makes few distinctions between
international and local investors. The Investment Promotion Act (2004) sets the legal framework for investments.
Investment and concession The Private Public Partnership (PPP) Act 2013 provides the legal framework for the deployment of PPPs in the
laws  energy sector, among others. In general the energy sector remains the most publicly owned (state owned
enterprises control most of the retail distribution and generation of electricity as well as refinement, distribution
and sales of fuels).
The electricity generation sector is open to IPPs. There are ten licensed IPPs (but the majority of generation
comes from the state owned KenGen). Transmission is a state monopoly run by Kenya Electricity Transmission
Private sector activities  Company (KETRACO) and the largest distributor is state owned Kenya Power and Lighting Company (KPLC).
Exploration activities for oil deposits are performed by licensed private companies.
The country is ranked 114 out of 189 countries in the “protecting investors” topic according to the World Bank
Investors protection  “Doing Business” analysis9 for 2015.
National financial incentives  A feed-in tariff scheme is in operation for renewable electricity.
Institutional support to private Kenya Investment Authority assists foreign investors by offering a one stop shop. Energy is listed as one of the
sector  “opportunity sectors” for investments in the country.

4 Energy access

Energy access policy and

targets  SE4ALL Action agenda target is 100% electricity access and 100% access to modern cooking solutions by 2030.

Rural Electrification Authority (REA), established under the Energy Act (2006) for enhancing the rural
Agency / Rural energy fund  electrification in the country. The funds used by REA mainly come from the state budget (about 80% in 201210)
Rural electrification master The rural electrification program of REA includes targets and priorities for electrification. REA is responsible for
plan  the updates of the program.
The SE4ALL Investment Prospectus8 includes a list of projects for energy access and the respective investment
Increasing EA investment plan  needs.

8 Kenya SE4ALL Investment prospectus, Draft March 2015.

9 World Bank available at http://www.doingbusiness.org/data/exploreeconomies/Kenya/ [Accessed 07/12/2015]
10 World Bank, available at: http://siteresources.worldbank.org/EXTAFRREGTOPENERGY/Resources/717305-1327690230600/8397692-
1327691237767/Rural_Electrification_in_Kenya_presentation_Final_11thNov2011.pdf [Accessed on 08/12/2015].

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Country: Kenya

EA decentralized initiatives  REA finances off-grid electricity generation plants (usually hybrid) and mini-grids.
The SE4All Action Agenda and Investment Prospectus include initiatives for modern cooking fuels and
Traditional fuels replacement  appliances. There is also a target to promote LPG to cover 18% of cooking by 2020.
Independent distribution
networks  The SE4All Action Agenda and Investment Prospectus foresee the development of mini-grids.

Electricity distribution master The Kenya Distribution Master plan was developed in 2013 by the Kenya Power and Lighting Company Ltd
plan  (KPLC)11
The domestic electricity tariffs have a block structure in which the cost of the first block is almost five times lower
Specific measures for the poor  than the average rate. The last mile connectivity project foresees that low income households can pay the
connection costs to the electricity network in instalments.
The Microfinance Act (2006) and the Microfinance Regulations (2008) set the regulatory framework for the
microfinance industry in Kenya. There are twelve licensed micro-finance banks featured on the website of the
Microfinance instruments  Central Bank of Kenya12. Microfinance programs for expanding energy access and clean cooking technologies
are in place.
The REA funds isolated electrification projects and mini-grids. “Lighting Africa” had a programme in Kenya until
Pre-electrification  2013 for promoting solar lighting.

5 Renewable energy (RE)

The Draft National Energy and Petroleum Policy (2015) foresees the development of 1.9GW geothermal power
RE Policy  plants by 2017 and 5.5GW by 2030, the exploitation of the estimated 1449MW of large hydro, and the potential
of small hydro, wind and PV.
The Renewable Energy Department in the ERC is responsible for “leading the planning, development,
implementation, promotion and execution of structures for the development and regulation of the renewable
Agency / RE Fund  energy and energy efficiency through research and planning, development of standards and regulations,
compliance and enforcement”. There is no RE fund but REA funds applications of mini-grids based on RES.
The “Scaling up Renewable Energy Program” Investment plan (Draft 2011)13 includes a detailed list of projects to
RE master plan  be funded for RE electricity generation.
Only drafts exist of the Strategy for developing the bio-diesel industry in Kenya (2008-2012), Bioethanol strategy
Biofuels regulatory (2009-2012) and Proposed National biofuel policy (2010). The Kenya Bureau of Standards (KEBS) drafted
frameworks  biodiesel standards and bioethanol standards. The Draft Biodiesel Licensing Regulations (2009) set the mandate
of 5% biodiesel blending, but it is still not enforced.
The Kenya Forests Act (2005) sets the legal framework for wood uses. The Forest Conservation and
Wood energy regulations  Management bill (2014) is still in draft form.
Solar/wind regulations  Published: Solar Photovoltaic Systems Regulations (2012), Solar Water Heating Regulations (2012).

11 Kenya Distribution Masterplan, KPLC, Final Report, April 2013, available at: http://www.renewableenergy.go.ke/asset_uplds/files/KPLC%20Distribution%20Master%20Plan%20Study%20-
%20Final%20Report%20Rev%20%201%20%285%29.pdf [Accessed on 08/12/2015].
12 Central Bank of Kenya, https://www.centralbank.go.ke/index.php/bank-supervision/microfinance-institutions/14-bank-supervision/83-list-of-licensed-deposit-taking
13 SREP Investment Plan, available at http://www.renewableenergy.go.ke/downloads/policy-docs/Updated_SREP_Draft_Investment_Plan_May_2011.pdf, [Accessed on 08/12/2015].

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Country: Kenya

The ERC hosts the Renewable Energy Portal (http://www.renewableenergy.go.ke) which presents the mapping
of geothermal resources and the “Wind Sector Prospectus” (2013)14 which includes wind maps and identifies
RE resources mapping  wind projects. The Least cost power development plan has identified a number of sites for small hydro power
plants.
RE is promoted for electricity generation (geothermal power plants, hydro, PVs for on-grid and off-grid
RE Promotion  applications, solar heating systems).
RE long-term funding  The renewable energy feed in tariffs offer technology based fixed prices in US$ for 20 years.

Green Energy Fund  A Green Energy Fund was announced in 2012 but is not implemented.
Network connection studies  There are guidelines for the connection of small scale renewables in the electricity network15.

6 Energy Efficiency (EE)

EE is included in the National Energy and Petroleum Policy draft (2015). The main policies included are the
development of awareness raising programs, guidelines for audits, minimum energy performance standards for
EE Policy  equipment, incentives for the uptake of energy saving technologies, enforce building codes. The development of
a national energy efficiency and conservation plan is also foreseen.
EE national action plan 
Kenya Bureau of Standards approved ten minimum energy performance standards for appliances including
EE Standards and labels  lamps, refrigerators, air conditioners and motors. The Appliances’ Energy Performance and Labelling
Regulations were published in 2013.
EE Promotion  Kenya Power (KPLC) has developed nationwide awareness campaigns.
Electricity losses reduction
programme  KPLC implements a programme for the reduction of distribution losses.
There are targets in the SE4All Action agenda for improved cook stoves (ICS) aiming at 100% usage of
improved charcoal stoves by 2020 in urban areas and 60% in rural areas. Many NGOs have programs for
Improved stoves programs  promotion of ICS, the MoE and Min. of Agriculture have been active in ICS promotion, donors have been
involved in distributing ICS.
Ban on non-efficient
appliances 
Incentives for efficient
appliances 
KPLC provides energy audits and energy advisory services to customers, has implemented CFL roll out
Demand-side management  programmes and plans to implement a smart metering programme in the future.

14 Wind Sector Prospectus - Kenya, Wind energy data analysis and development programme 2013 available at
http://www.renewableenergy.go.ke/asset_uplds/files/Wind%20Sector%20Prospectus%20Kenya.pdf [Accessed on 08/12/2015].
15 Connection Guidelines for Small-scale renewable generating plants, MoE, 2012, available at http://www.energy.go.ke/downloads/Guidelines%20for%20Grid%20Connection.pdf , [Accessed
08/12/2015].

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Country: Kenya

7 Electricity sector
The Energy Act (No. 12 of 2006) set the framework for the establishment of the Energy Regulatory Commission
Legal definition of the
institutional players
 (ERC) and the opening of the electricity market. Licensing procedures are foreseen for IPPs and distribution
companies. Transmission is a monopoly of Kenya Transmission Company (KETRACO).
A tariff structure is in place for consumers that includes all the costs. The tariff system has been approved by the
Tariff policy  ERC and prices are reviewed monthly to account for fuel costs adjustments, foreign exchange fluctuation,
inflation adjustments etc.
Currently Kenya is interconnected to Uganda and there are cross-border connections with Ethiopia. The planned
Interconnection rules  interconnections foresee a 500kV DC line to Ethiopia, a 400kV line to Tanzania and a new Kenya-Uganda link to
increase the interconnection capacity to 350MW.
Isolated networks rules  To be confirmed.
The revised feed in tariffs policy of 2012 foresees fixed prices for electricity generated from wind, biomass, small-
hydro, geothermal, biogas and solar systems. The tariffs are reviewed every three years, are given in US$/kWh
Feed-in tariff policy  and are valid for a period of 20 years. The tariffs vary with the installed capacity of the plant until 10MW and are
fixed for plants above 10MWs16.
RE minimum % imposed to  None.
producers
RE certificates trade  No.
Free access to the domestic
network  All electricity producers have access to the transmission network. Transmission tariffs are defined by ERC.

Net metering  No.

The electricity sector is fully unbundled. Generation and distribution is privatised and the transmission system
Unbundling  operation is a monopoly of KETRACO.
Decentralized transport
networks 
Least cost development plan  Updated Least Cost Power Development Plan 2013-2033 (March 2013)17 by ERC, updated every two years.
Updated Least Cost Power Development Plan 2013-2033 (March 2013), Kenya Distribution Master Plan KPLC
Electricity master plan  (April 2013).
The electricity generation is fully privatised with ten licensed IPPs, and the distribution is open to licensed
Privatization /
commercialisation  companies. However, in 2014 the majority of electricity generation came from KENGEN and the main distributor
was KPLC. KETRACO has the monopoly for the transmission system operation.
Utility management contract 
Utility financing plan  KPLC is publishing its accounts and performs financing plans annually.

16 Feed-in tariffs policy on wind, biomass, small hydro, geothermal, biomass and solar resource generated electricity, MoEP, 2nd Revision 2012, available at
http://www.energy.go.ke/downloads/FiT%20Policy,%202012.pdf [Accessed on 08/12/2015].
17 Available at http://erc.go.ke/images/docs/Least_Cost_Power_Development_Plan_2013-2033.pdf [Accessed on 08/12/2015].

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ANNEX 3 – ELECTRICITY SECTOR ASSESSMENT

C RITERION I NFORMATION

Electricity sector policy

The Energy Act (No. 12 of 2006); Geothermal Resources Act (No. 12 of 1982); Legal Notice No. 44/2012 “Electricity Licensing
Electricity sector laws
Regulations”; Legal Notice No. 103/2012 “Solar Photovoltaic Systems Regulations”.

The electricity sector is fully unbundled. Generation and distribution is privatised and the transmission system operation is a
Unbundling
monopoly of KETRACO.

Energy Regulatory Commission (ERC) mandated by the Energy Act 2006 to regulate the electricity sector, monitor fair competition
Regulation of the sector in the energy sector (including downstream petroleum sector) protect consumer rights, maintain a list of accredited energy auditors,
maintain energy data and prepare an indicative national energy plan.
Master Plans / Least cost development plans/ Updated Least Cost Power Development Plan 2013-2033 (March 2013), Kenya Distribution Master Plan KPLC (April 2013).
Capacities expansion plan “Scaling up Renewable Energy Program” Investment plan (Draft 2011)18 which includes a detailed list of projects to be funded for
RE electricity generation.
Networks and access development Kenya Electricity Grid Code, ERC, 200819. “Connection Guidelines for small scale renewable generating plant” (2012), MOEP 20.
In 2015 there were ten licensed IPPs: Tsavo, Iberafrica, Thika Power, OrPower4, Mumias Sugar, Rabai. Imenti Tea, Gikira hydro
IPPs
(PTS), Triumph diesel, Gulf power as well as a number of isolated grids (isolated grids have 25.8MW in total).
The objectives in the Draft National Energy and Petroleum Policy (2015) encourage electricity generation from renewables. The
target is to achieve 1.9GW geothermal power plants by 2017 and 5.5GW by 2030; exploit the estimated 1449MW of large hydro,
RE based electricity production objectives
and the potential of small hydro, wind and PV. SE4All Action Agenda targets include: 19GW of installed capacity by 2030, of which
26% will be geothermal, 9% will be wind and 9% hydro.
Standardised PPAs are available by ERC21. The revised feed in tariffs policy of 2012 foresees fixed prices for electricity generated
from wind, biomass, small-hydro, geothermal, biogas and solar systems. The tariffs are reviewed every three years, are given in
Power purchase agreements, feed-in tariffs
US$/kWh and are valid for a period of 20 years. The tariffs vary with the installed capacity of the plant until 10MW and are fixed for
plants above 10MWs22.

Access to transport networks regulations Kenya Electricity Grid Code, ERC, 2008.

18 SREP Investment Plan, available at http://www.renewableenergy.go.ke/downloads/policy-docs/Updated_SREP_Draft_Investment_Plan_May_2011.pdf, [Accessed on 08/12/2015].

19 Available at http://www.erc.go.ke/images/docs/Kenya%20Grid%20Code.pdf [Accessed on 08/12/2015].
20 Available at http://www.energy.go.ke/downloads/Guidelines%20for%20Grid%20Connection.pdf
21 Available at: http://erc.go.ke/index.php?option=com_content&view=article&id=148&Itemid=573 [Accessed on 08/12/2015].
22 Feed-in tariffs policy on wind, biomass, small hydro, geothermal, biomass and solar resource generated electricity, MoEP, 2nd Revision 2012, available at
http://www.energy.go.ke/downloads/FiT%20Policy,%202012.pdf [Accessed on 08/12/2015].

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The last major sector reform was done following the Electric Power Act (put in place in 1997), which set the basis for the unbundling
Sector reforms
and the liberalisation of the sector.

Enterprises and services

PRODUCTION

Kenya Electricity Generating Company (KenGen managing the public power generation facilities) and a number of IPPs: Tsavo,
Main companies and shareholders Iberafrica, Thika Power, OrPower4, Mumias Sugar, Rabai. Imenti Tea, Gikira hydro (PTS), Triumph diesel, Gulf power as well as a
number of isolated grids. Aggreko has a license as an Emergency Power Producer.
Production (GWH) 9424 GWh in 201423.
In 2014 the total installed capacity was 2173MW of which 821MW hydro, 695MW oil fired power plants, 593MW geothermal power
Installed capacity (MW)
plants, 38MW of biomass fired cogeneration and 25MW of wind 23.
In 2014 1767GWh (19%) were generated from fossil fuels, 3466GWh (37%) from hydro and 4111GWh (44%) from other renewable
Production mix (GWh)
sources (geothermal, biomass and wind)23.
Peak demand (MW) In 2014 1512MW 23.

TRANSPORT

Enterprises Kenya Electricity Transmission Company Ltd (KETRACO) is the transmission system owner and operator.
HV lines length and capacity In 2014 there were 1434km of 220kV lines, 2513km of 132kV23.
Exports/Imports In 2014 total imports were 84.3GWh and total exports 39GWh23.

DISTRIBUTION

Enterprises (s) Kenya Power and Lighting Company (KPLC) is the largest distribution company. There are a number of isolated mini-grids.
Medium Voltage: 1212km of 66kV lines, 20778km of 33kV lines and 30860km for 11kV.
MV and LV lines length and capacity
Low voltage: to be comfirmed.
In 2014 the total number of clients in the distribution was 2,766,00023. According to the annual report of KPLC (2014-2015) the total
Clients
number of customers by the end of June 2015 were 3,611,90424

23 Draft National Energy and Petroleum Policy, MoEP, June 2015.

24 KPLC, Annual Report and Financial Statements, Financial year ended 30th June 2015, available at
http://kplc.co.ke/img/full/jSsYVq47rObE_KENYA%20POWER%20ANNUAL%20REPORT%202015%20-%20FOR%20WEB.pdf [Accessed on 08/12/2015].

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Total sales in 2014 were 7244GWh. The following tariffs exist approved by the ERC: (a) domestic consumers connected to low
voltage with a consumption below 15MWh per billing period, (b) non-domestic commercial consumers with a consumption below
15MWh per billing period, (c) commercial and industrial consumers (3phase connections) with a consumption above 15MWh per
Total sales and tariff categories
billing period, (d) commercial and industrial consumers connected at 11kV, (e) commercial and industrial consumers
connected at 33kV, (f) commercial and industrial consumers connected at 66kV, (g) commercial and industrial consumers
connected at 132kV, (h) interruptible off-peak supply for consumers with a consumption below 15MWh per billing period.
Demand forecast on the interconnected According to the updated Least Cost Development plan 2013-203317, in the reference scenario the expected peak load would reach
network (MW) 3910MW in 2020, 7480MW in 2025 and 14446MW in 2030.

Tariff / cost recovery / subventions

The ERC approved the “Schedule of Tariffs for the supply of electricity” in 2013. This defines the different tariff categories described
above and for each tariff category there is a fixed charge per billing period, an energy charge which has a block structure for
domestic consumers only, and a demand charge for large commercial and industrial users. The last change for these charges was
Electricity tariffs in July 2015. On top of these charges, for every kWh consumed the following charges will be added which are revised monthly: fuel
cost charge, foreign exchange rate fluctuation adjustment, inflation adjustment, security support facility, water levy, VAT, Rural
electrification programme levy, ERC levy (details for the tariffs are available at
http://kplc.co.ke/img/full/zcaJOzy5QmNN_Schedule%20of%20Tariffs%202013.pdf).
The domestic tariff is a “block tariff”. The first block corresponds to 50kWh per billing period and costs 2.50KSh/kWh (about five
Social tariff
times less than the middle consumption block).

Cost coverage through tariffs The tariff setting methodology approved by ERC is based on cost recovery principles. Tariffs are adjusted using a clearly prescribed
Planned tariffs adjustments mechanism and incorporating generation costs, exchange rate fluctuations and inflation on a monthly basis.

Currently the state subsidies are only for the rural electrification programme and are related to the grid expansion and connection
Level and subsidies sources
fees and not to the electricity tariffs.
KPLC has implemented a high capital consuming investment program since 2011 in order to increase connectivity and improve the
Financial situation of the main enterprises
distribution network. This was covered almost entirely by KPLC resources which had an effect on its financial position 25.

Performance: losses / efficiency/ service quality

The largest share of electricity generation in Kenya comes from hydro (37% of generation) and geothermal and other RES plants
Production performance
(44% of generation) with high efficiency. Isolated mini-grids based on diesel engines have relatively low generation efficiency.
Total system losses were at the level of 18% in 2014, 18.6% in 2013 and 17.3% in 2012 according to KPLC. KPLC has a loss
Transport losses, evolution and objectives
reduction programme including more efficient transformers and line rehabilitation. SE4All action agenda foresees a reduction of
Distribution losses (technical and non- distribution losses to 15% by 2020 and 9.3% by 2030.

25World Bank, Project Appraisal Document for a proposed guarantee for an electricity modernization project, available at http://www-
wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/03/000477144_20150403090122/Rendered/PDF/PAD7300REPLACE0C0disclosed030310150.pdf, [Accessed on
08/12/2015].

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technical)

Revenues Revenue losses for the KPLC due to total system losses reached a level of 23.10billion KShs in 2014 (around 260million USD).
According to the Draft National Energy Plan, KPLC maintains data on the number of high and low voltage interruptions, transformer
Shutdowns and improvement objectives failures, number of low voltage breakdowns but does not use internationally accepted indicators (SAIDI, SAIFI etc.). Quality
statistics are not available on the websites of KPLC or ERC.

Off-grid electrification and electricity access

According to the World Bank data in 2012 the global electrification rate was 23%, the urban electrification rate was 58% and the
Electrification rate (urban/rural) rural electrification rate was 7%26. According to the Draft National Energy and Petroleum Policy (2015) in June 2014 35% of the
population was connected to electricity networks 23.
The SE4All Action Agenda targets 65% of urban population with electricity access by 2022 and 40% of rural by 2020, reaching
Electrification objectives
global access (100%) by 2030.
The Rural Electrification Authority (REA), established under the Energy Act (2006) for enhancing the rural electrification in the
Rural electrification agency
country. The funds used by REA mainly come from the state budget.
Stand-alone PV systems are the most widely used off-grid solutions, with an estimation of 200,000 systems installed and sales
Off-grid electrification situation and estimated at 20,000 systems per year27. Pico-solar systems for lighting and mobile phone charging are also in the market. The
programmes MoEP and REA are installing PV systems in primary and secondary schools, health centres and other public institutions in a
continuing programme.
Off-grid operators Information to be obtained.
Mini-grids are developed and managed by KPLC. “Connection Guidelines for small scale renewable generating plant” (2012),
Isolated networks regulations
MOEP28.
BoP Policy (Bottom of the Pyramid) Information to be obtained.

Energy Efficiency (EE)

Interruptible tariff is in place for water heating to manage the demand during peak hours. KPLC offers energy audits and energy
Demand-side management
advisory services to customers and plans to install smart metering.
KPLC has performed a number of CFL roll out programmes since 2009/10, is the prime sponsor of the energy management awards
EE activities and is participating in the development of minimum energy performance standards for appliances. KPLC also has awareness
campaigns on EE using fliers and adverts.

26 World Bank; Available: http://data.worldbank.org/country/kenya, [Accessed on 08/12/2015].

27 Kenya SE4All Action Agenda Draft March 2015.
28 Available at http://www.energy.go.ke/downloads/Guidelines%20for%20Grid%20Connection.pdf

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Other aspects

The power system of Kenya is interconnected to Uganda through a 132kV double circuit transmission line and there are cross-
Regional electricity market border agreements with Tanzania and Ethiopia. Within the East African Power Pool initiative there are plans for a new 400kV line to
Uganda, a 500kV HVDC line to Ethiopia as a part of the Eastern Africa Electricity Highway and a 400kV line to Tanzania.

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ANNEX 4 - NATIONAL TARGETS FOR ENERGY ACCESS, RENEWABLE ENERGY AND ENERGY EFFICIENCY

Country Sector Policies and objectives Source

East African Access Provide access to modern cooking practices for 50% of the population that currently uses traditional Strategy on scaling up access to modern
Community cooking fuels provide access to reliable electricity for all urban and peri-urban poor provide access to energy services, EAC Secretariat.
modern energy services such as lighting, refrigeration, information and communication technology,
EAC29 and water treatment and supply for all schools, clinics, hospitals, and community centres.
Renewable No specific targets set yet for EAC.
Energy
Energy No specific targets set yet for EAC.
efficiency
Kenya Oil and gas Promote LPG to cover 18% of cooking by 2020. Kenya SE4All Action Agenda (2015).
Draft national Energy and Petroleum
Development of a natural gas master plan and exploitation of locally available hydrocarbon Policy MoEP (2015).
resources.
RE Development of 1.9GW geothermal power plants by 2017 and 5.5GW by 2030, exploitation of the Draft national Energy and Petroleum
estimated 1449MW potential of large hydro, and the exploitation of the potential of small hydro, wind Policy MoEP (2015).
and PV. SE4All Action Agenda targets include: 19GW of installed electricity capacity by 2030, of Kenya SE4All Action Agenda (2015)
which 26% will be geothermal, 9% will be wind and 9% hydro.
Access SE4ALL Action agenda target is 100% electricity access and 100% access to modern cooking Kenya SE4All Action Agenda (2015)
solutions by 2030. 100% usage of improved charcoal cooks stoves by 2020 in urban areas and 60%
in rural areas.
Energy Reduce the primary energy intensity by half in order to reach 0.12toe/US$1000 GDP(PPP) by 2030. Kenya SE4All Action Agenda (2015)
efficiency Reduce electricity distribution losses to 15% by 2020 and 9.3% by 2030.

29Kenya is a member state of the East African Community, one of the Regional Economic Communities in Africa. The reference is given to show the
objectives of the regional community compared to the objectives of the country under consideration.

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