Investment in Renewable Energy in Kenya: Key Legal Issues, Challenges and Prospects

Kenya launched its Kenya Vision 2030 in 2008 which identified “energy” as one of the key enablers to economic, social and political growth. The political economy supports transition from fossil fuels to clean energy sources which is in line with the global commitments to address the climate change problem by reducing greenhouse gases. To achieve the transition, development of renewable energy sources has been identified as one of key components in addressing climate change problem. Renewable energy provides a large source of Kenya’s electricity today of about 80 %, a country of over 50 million people which helps in the transition  to clean energy by 2030. Achieving the final 20 percent will require the input of country’s energy policy experts and investors in utilising Kenya’s rich natural potential for geothermal energy, solar energy and wind energy among other sources of clean energy. The legislative framework and institutional changes Kenya put in place are conducive to foreign investment and especially on-grid, off-grid and micro-grid projects. The paper analyses the scope of investment in renewable energy in Kenya, which is important for the purpose of mapping the legal aspects that support such investment, challenges and prospects.