Whats In
🔮 Outlook on KENGEN AND KPLC
Kenya's energy sector is poised for a transformative decade, with strong policy frameworks and international support paving the way for a sustainable, inclusive, and resilient energy future. The country's leadership in renewable energy, particularly geothermal, positions it as a model for clean energy development in Africa.
Kenya's energy sector is undergoing a significant transformation, aiming to achieve universal electricity access by 2030 and net-zero emissions by 2050. This transition is guided by comprehensive policies and substantial investments in renewable energy.
Strategic Vision and Policy Framework
The Kenya Energy Transition and Investment Plan (ETIP) 2023–2050 outlines the nation's commitment to a clean energy future. Launched in November 2024, the ETIP targets a 100% renewable energy grid by 2030 and net-zero emissions by 2050. It identifies key sectors for transformation, including power generation, transport, industry, cooking, and green hydrogen production. Achieving these goals is projected to require approximately USD 600 billion in investments by 2050 .
Complementing the ETIP, the National Energy Policy 2025–2034 focuses on optimizing renewable energy use, ensuring energy security, and promoting equitable access to energy services .
⚡ Renewable Energy Expansion
Geothermal Energy: Kenya leads Africa in geothermal energy production, with geothermal sources accounting for approximately 47% of the country's electricity. Notable projects include:
• Menengai III Geothermal Power Station: A 35 MW plant commissioned in August 2023
• Menengai II Geothermal Power Station: A 35 MW facility under construction, expected to be operational by 2025
• Olkaria VI Geothermal Power Station: A 140 MW plant projected to be commissioned in 2024 .
Solar Energy: The
Solar Energy: The solar sector is experiencing rapid growth, with projections indicating an installed capacity of 407.4 MW by 2025. This expansion is driven by favorable policies and increased investment in utility-scale solar projects .
Innovative Projects:
• KenGen Floating Solar Power Station: A planned 42.5 MW floating solar farm on Kamburu Dam, expected to commence construction in the second half of 2024
• Kakamega Waste-to-Energy Plant: A 10 MW facility utilizing solid waste to generate electricity, aiming to address both energy and waste management challenges
🌍 International Collaborations and Investments
Kenya's energy ambitions are supported by international partnerships. During President William Ruto's state visit to Washington in 2024, significant investments were announced, including a $1 billion geothermal-powered data center by Microsoft and G42 . Additionally, the U.S. International Development Finance Corporation plans to open a Nairobi office to support various sectors, including energy.
KCB Group posted a net profit of Sh16.09 billion in the first quarter ended March 2025, nearly matching last year’s performance during the same period as non-interest income retreated and operating expenses rose. The latest net profit compares with Sh16.06 billion net earnings in the first quarter of 2024, and was supported by an 8.6 percent rise in net interest income to Sh33.72 billion from Sh31.06 billion. Non-interest income however, dropped by 9.7 percent to Sh15.72 billion from Sh17.42 billion while operating expenses rose by 3.4 percent to Sh28.26 billion, leading to the flat bottom-line. “It is notable that we were able to match the 2024 quarter one performance, which was impressive by all standards. The group was resilient, supported by new business lines, deepening of digital channels and innovative customer value propositions,” said Paul Russo, chief executive at KCB Group.
* StanChart profit falls 13 percent as forex, loans income drop
Standard Chartered Bank Kenya has reported a 13.5 percent drop in profit after tax for the three months ended March, owing to a shrink in its loan book and decline in forex income. The bank reported a net profit of Sh4.8 billion down from Sh5.6 billion over a similar period last year, as its core business took a hit. StanChart’s loan book shrank to Sh137.8 billion from Sh153.5 billion a year earlier, resulting in a 12.6 percent drop in interest income to Sh5 billion. Lending to the private sector has contracted with tough economic conditions, forcing businesses and households to shelve borrowing plans despite a fall in interest rates
* Williamson, Kapchorua issue profit warnings
Nairobi Securities Exchange-listed agriculture firms Williamson and Kapchorua expect their profits to fall by at least 25 percent following an international oversupply of tea that saw prices plunge and the withdrawal of one of the country’s top buyers. The two firms yesterday issued profit warnings, meaning that their profits will not exceed Sh299.5 million for Kapchorua and Sh395.2 million for Williamson, going by their profits reported last year. Data from the Tea Board of Kenya shows that tea production in Kenya increased from 570,449 tonnes in 2023 to 598,477 tonnes last year, while the average auction price declined to Sh295.75 per kilogramme from Sh311.43 in 2023. The appreciation of the shilling against the US dollar further compounded the challenges faced by tea firms, contributing to a continued drop in earnings.