The recently released National Energy Policy 2025–2034 sets a bold vision for Kenya’s energy sector, aiming for universal access to electricity by 2030, an increased reliance on renewable energy, and a transition to clean cooking solutions. Businesses operating in Kenya need to understand how this policy impacts them, the challenges they may face, and the opportunities it presents. This guide breaks down key takeaways for businesses and provides a roadmap for implementation.

What businesses need to know

1. Renewable energy is the future
   • The policy emphasises scaling up solar, wind, geothermal, and bioenergy sources. Businesses with high energy demands should explore solar PV, geothermal direct use, and energy storage systems (ESS) to align with government incentives.
   • Large consumers may benefit from net metering, allowing them to supply excess renewable power back to the grid, reducing electricity costs.
2. Energy efficiency and conservation are priorities
   • Kenya is pushing for energy-efficient technologies, electric mobility, and grid modernisation to lower carbon emissions.
   • Businesses should invest in energy audits, smart grids, and efficient appliances to cut operational costs and enhance sustainability.
3. Clean cooking solutions for commercial kitchens
   • With over 69% of households still relying on traditional biomass fuels, the policy seeks to transition public institutions and businesses to LPG, biogas, and electric cooking.
   • Hotels, restaurants, and food processing companies should consider adopting eCooking, LPG, and bioethanol solutions to reduce costs and emissions.
4. Green hydrogen and carbon markets present emerging opportunities
   • Kenya is positioning itself as a leader in green hydrogen production for industrial use, particularly in manufacturing and transport.
   • Businesses can tap into carbon financing by investing in projects that generate carbon credits, such as reforestation and renewable energy installations.
5. Electric vehicles (EVs) and sustainable transport will grow
   • The government aims to increase EV adoption, reduce fossil fuel reliance, and expand charging infrastructure.
   • Companies with vehicle fleets should consider transitioning to electric or hybrid vehicles, taking advantage of emerging incentives.

Challenges businesses may face

1. High initial costs
   • While renewable energy and energy-efficient technologies promise long-term savings, the upfront investment remains high.
   • Access to financing may be limited, especially for SMEs.
2. Regulatory and infrastructure gaps
   • The policy outlines ambitious goals, but businesses may face unclear regulations, licensing bottlenecks, and slow infrastructure rollout.
   • Power reliability, especially in rural areas, remains a concern for businesses relying on a steady energy supply.
3. Market readiness and awareness
   • Despite the push for green hydrogen, electric cooking, and carbon trading, many businesses lack technical expertise and awareness of these emerging sectors.

Opportunities for businesses

1. Access to green financing and carbon markets
   • Companies investing in renewables, energy efficiency, and carbon offset projects can tap into climate financing, carbon credits, and public-private partnerships.
2. Cost savings through energy efficiency
   • Implementing smart metres, automation, and renewable power can reduce operational costs, enhancing profitability.
3. Competitive advantage through sustainability
   • Businesses that align with Kenya’s climate goals and ESG reporting will attract investors, international partners, and environmentally conscious consumers.

Where to begin in implementation

1. Conduct an energy audit
   • Assess your current energy consumption, efficiency gaps, and potential for renewable integration.
2. Explore renewable energy options
   • Invest in solar PV, wind, or geothermal power solutions, especially for high-energy industries.
   • Consider net metering or captive power generation for cost savings.
3. Adopt energy-efficient technologies
   • Upgrade to LED lighting, energy-efficient motors, and smart monitoring systems.
4. Evaluate sustainable transport and clean cooking solutions
   • If applicable, shift to electric vehicles or hybrid fleets.
   • Transition to LPG, biogas, or electric cooking for commercial kitchens.
5. Engage in carbon markets and green financing
   • Explore carbon credit projects and financing options through development banks and green funds.