"What changing energy strategy means for Kenya"

It is no longer a surprise to hear major oil companies announce significant investments in renewable energy projects, guided mainly by need to align their future business models with the ongoing global transition from fossil fuels (coal, oil, gas ) to renewable energy (mainly wind and solar). Renewables is a fast-growing investment sector with full support from multilateral and commercial banks and equity capital...

The European Union (EU) is a major motivator of transition to green energy through effective regulatory and fiscal policies, and this has kept the European oil majors ahead in the renewable energy game. A win-win formula for climate change goals. And China, as always, is matching every success point achieved by Europe. Yes EU, oil majors, and China are emerging as the “unlikely team” driving renewables and climate change goals.

What does all the above mean for Kenya? There will be reduced appetite for global oil majors to invest in new or existing oil and gas exploration projects in Kenya, and even harder for banks to provide capital for oil projects. Recently we saw African Development Bank refuse to participate in funding the Uganda/Tanzania crude oil pipeline, arguing it is not a renewable energy project. Kenya will see increased competition by renewable energy investors, especially in the quick-win wind and solar. It should not surprise us to see a major oil company investing in solar or wind energy projects in Kenya, to indirectly (via KPLC) supply renewable energy for their “EV charging service stations “to service electric vehicles. Yes, I bet this will be happening in five to ten years.