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Energy Sector

The energy sector has achieved tremendous results since 2003.

The Government realises that an efficient and reliable energy sector plays an important role in powering economic activities. In turn, this contributes to job creation and poverty alleviation.

The Kenya Electricity Generating Company (KenGen) has been partially privatised. This historic process gave Kenyans major investment opportunities through the selling and buying of shares.


Core achievements in the energy sector

  • Power supply
    The 60 Mw Sondu Miriu hydroelectric power plant is almost complete.
    Four new power substations are being built at Matasia, Bahati, Baba Dogo and Kiambu at a cost of Ksh. 2.0 billion.
  • Rural electrification
    For the past 4 years, President Kibaki's policy has been to supply all rural market centres, colleges, secondary schools, village polytechnics & other intermediate institutions of learning, community health centres, farm produce factories and community water works with electric power. The idea is to have as many Kenyans as possible benefiting from this vital service.
    So far the whole programme has cost the government Ksh.5 billion.

    The following projects have either completed or are ongoing:

    • 166 rural electrification projects in 58 districts successfully completed.
    • 28 trading centres, 18 secondary schools, 7 health facilities, 3 water projects and one (1) tea buying centre electrified at a cost of Ksh.329 million.

    • 138 projects under way around the country.

    • 722 projects at the planning stage with ready funding.

    • Completion of two new 23 MVA substations at Matasia and Kiambu.


  • Solar Electricity Programme
    There is an ongoing programme to provide schools in Arid and Semi-Arid Areas (ASAL) with solar energy. So far, 63 schools have received with solar generators from this noble initiative and more are being planned for.
  • Electrification of slums and other marginal neighbourhoods in Nairobi
    There's a deliberate policy by the Government to light up slum areas as part of the overall slum upgrading programme. Electrification of slums is expected to create employment and tackle insecurity, besides providing other benefits.
    The following projects demonstrate this commitment:
  • Ksh. 67 million, 2006/07 financial year has been set aside to finance electrification in Mukuru, Mathare, Kayole, Kangemi, Kibera and Kamukunji areas.

  • Two new substations, Bahati and Baba Ndogo were commissioned in November 2006 at a cost of Ksh. 370 million. This is aimed at stemming the frequent and disruptive power blackouts in Eastlands and Ruaraka areas of Nairobi.

  • Power connectivity has recorded remarkable growth with consumption capacity increasing from 1,422Mw to 1,156Mw between 2003.


  • Power generated by our providers has increased in capacity from 4,851GWH to 5,547.09GWH between 2003 and 2005.

  • Kenya Power and Lighting Company(KPLC) has been restructured
    KPLC was technically insolvent before 2003. The company has been split into two, with one specializing in power transmission and, the other, distribution to increase efficiency.
  • Making business in the sector easy
    This has been made possible by, among other measures, the Creation of an enabling environment for the importation and marketing of petroleum products through the removal of entry barriers for small marketers.
  • President Kibaki assents to a new Energy Act
    A new and comprehensive energy law, one of its kind since independence, has been developed. This law provides a legal framework for sound management of the energy sector. Among the key highlights of the new law is the establishment of an Energy Regulatory Commission (ERC) to oversee effective regulation of the entire energy sector, the Rural Electrification Authority (REA) to accelerate rural electrification, and the Energy Tribunal to hear and determine appeals against ERC decisions.
  • Diesel generators
    Diesel power generators have been installed at Hola, Tana River district and El Wak Mandera District at a total cost of Ksh. 150 million and Ksh. 125 million, respectively. These projects are expected to be commissioned by September 2007.
  • Petroleum and coal exploration
    Exploration for indigenous hydrocarbon resources in the country is at an advanced staged. These efforts are intended to provide cheaper sources of energy and cut down the huge bill arising from oil importation.
    Oil exploration has begun in Lamu while areas with commercially exploitable coal deposits have been identified in Kitui, Mwingi and Kilifi districts.

  • Other renewable energy sources
    The Government appreciates the fact that other sources of renewable energy exist in abundance in the country. As a result, no effort is being spared in exploring the same. This includes the 500 Kilowatt wind power plant in Marsabit. Once commissioned, it will reduce the cost of electricity generation from Ksh.36 per kilowatt hour to Ksh.14. This will save the country about Ksh.20 million per year in oil costs.



  • Biogas from sugar factories
    This measure will have the effect of adding 120 megawatt of electricity into the national grid. Currently Mumias Sugar Company is supplying 2 megawatt into the national grid.
  • 36 biogas plants installed
    This will substitute firewood for cooking and heating around the country. This effort will save our trees, which attract rainfall. Indirectly, therefore, the measure contributes towards food security in Kenya, as well as countering the effects of global warming.
    These and many others are just but a few of the achievements in the energy sector by of the four-year-old Kibaki government.