Kenya’s energy landscape has undergone significant changes over the past six months, marked by steady growth in electricity generation, an increasing reliance on renewable energy, and a sharp rise in fuel prices.
According to the Bi-Annual Energy & Petroleum Statistics Report 2024/2025, the country continues to strengthen its energy security despite facing global economic pressures.
Kenya’s electricity sector recorded a 6.13 per cent increase in generation, producing 7,222.37 GWh compared to 6,805.28 GWh in the same period last year. Peak demand hit a new high of 2,288.35 MW on October 29, 2024, reflecting a growing energy appetite driven by industrial expansion and new customer connections.
Despite adding 194,654 new grid customers, bringing the total to 9,852,423, the pace of new connections slowed compared to the previous year’s 260,257.
Renewable energy continues to dominate, contributing 81.16 per cent of the energy mix. Geothermal power remains the backbone at 39.81 per cent (2,875.33 GWh), followed by hydropower at 24.74 per cent (1,786.90 GWh) and wind at 13.46 per cent(971.90 GWh).
Electricity imports surged by 79.41 per cent to 751.95 GWh, accounting for 10.41 per cent of the mix, bolstered by full commercial operations from Ethiopia and the launch of energy exchange with Tanzania on December 13, 2024, via the new 400kV Kenya-Tanzania transmission line.
Petroleum consumption rose by 7.12 per cent to 2,911,214.12 cubic meters, with automotive gas oil (AGO) and premium motor spirit (PMS) peaking in October and December, respectively. Pipeline throughput via the Kenya Pipeline Company (KPC) increased by 7.30 per cent, handling 95 per cent of imports.
Meanwhile, liquefied petroleum gas (LPG) demand jumped 13.38 per cent to 219,416 metric tonnes, driven by government initiatives promoting clean cooking in schools and hospitals.
Fuel prices in Nairobi trended downward, mirroring a decline in Murban crude oil prices from $89.14/bbl in July to $73.41/bbl in November, offering relief to consumers amid global economic slowdowns.
Kerosene, primarily used by low-income households, recorded the steepest increase at 15.7 per cent, further straining household budgets. These high costs appear to have dampened demand, with total petroleum consumption declining by 3.4 per cent over the period.
Kenya remains a net importer of petroleum products, with fuel imports rising by 5.6 per cent in response to the growing energy needs of industries and households.
However, the country has also strengthened its position as a regional energy hub, with electricity exports to Uganda and Tanzania increasing by 8.2 per cent. Additionally, imports of Liquefied Petroleum Gas (LPG) grew by 7.4 per cent, signaling a shift towards cleaner cooking energy among Kenyan households.
E-Mobility and Green Innovations Take Off
The report highlights a 480.65 per cent surge in e-mobility electricity consumption to 1.80 GWh, fueled by a discounted tariff introduced in April 2023 and a 41.06 per cent rise in registered electric vehicles (EVs) to 5,294.
Autogas also gained traction, with 10 new construction permits issued for stations. On the green hydrogen front, Kenya’s strategy, launched in 2023, is advancing with new regulatory guidelines and investment interest, targeting $1 billion by 2030.
Despite progress, challenges persist. System losses in electricity rose to 24.2 per cent, exceeding EPRA’s 17.5 per cent target, while reliability indices like SAIDI (9.15 hours/month) and SAIFI (3.57 interruptions/month) fell short of goals. Energy curtailment, particularly of geothermal power, spiked by 116.3 per cent to 511.72 GWh due to increased imports, though this is expected to ease with rising nighttime demand.
The sector continues to face challenges, particularly in hydropower generation, which remains vulnerable to climate change. The government is expected to introduce new incentives for renewable energy investments and infrastructure expansion in the coming months to sustain Kenya’s progress toward energy sustainability.
