How Kenya will make renewables more affordable for everyone

April 15, 2025

New Kenya bill prioritises cheaper renewables

The Kenyan Senate has passed the Energy Act Amendment Bill 2023 to increase transparency in energy purchase agreements. Key changes in the Bill require independent power producers to disclose their beneficial owners to obtain generation licences and mandate that electricity from cheaper renewable sources is prioritised.

  • Renewable energy use is seeing favourable policies to support sector growth in various countries. This week, Zambia reduced the approval period for solar project applications from over six months to 48 hours, as it moves to fast-track projects in line with its goal of achieving 1,000 MW from solar by year-end.

  • Kenya’s new policy closes loopholes that have facilitated electricity price exploitation, exemplified by the contrast between KenGen's $0.039 per kilowatt charge and IPP rates of $0.077 to $0.22.

  • Our take: Renewables' declining costs mean they can now compete with fossil fuels even in providing baseload power… Read more (2 min)

Pan-African private equity firm focused on clean energy investments, Inspired Evolution, has secured $238 million in its third fundraising to support clean energy projects in Africa. Funding was raised from international institutions, including the International Finance Corporation (IFC). Two previous rounds raised over $200 million in total.

  • The African energy space still faces a significant funding gap. The region has emerged as a significant destination for private equity (PE) investment, attracting both global players and dedicated Africa-focused funds. African Infrastructure Investment Managers (AIIM), Berkeley Energy, and Helios Investment Partners are some that are targeting the renewables sector.

  • Though investments from PE firms have picked up, the investments fall short of what is required. Between 2012 and 2023, about $19 billion was invested in 305 deals. Solar accounted for 63%, followed by wind at 12% and hydropower at 8%.

  • Our take: Consistency in policy implementation should be a key focus to attract and retain private capital… Read more (2 min)

2025 ignited Africa's renewable energy surge, with events fostering project investment. This momentum continues.  We've curated 15+ upcoming gatherings to further drive the continent's sustainable energy transition. These events promise to amplify growth and unlock new opportunities for widespread renewable adoption.

  • Most of the events on our list are happening in East Africa. The multiple gatherings in Kenya, including the ESAK C&I Conference, the Solar International Trade Expo, among others, indicate Kenya's role as a regional energy hub. South Africa is also hosting key events, as seen in the photo above, at the recently concluded Solar & Storage Africa event in Johannesburg.

  • We are seeing a strong push for technology adoption in renewables. This is confirmed by events like Converge Africa and Enlit Africa, which focus on technological advancements in the energy sector, including digitalisation, smart grids, and energy storage. 

  • Participate in these and more events here

Panellists at the recently concluded International Network on African Energy Transition event in Nairobi, Kenya

Jobs

👷🏼 Coordinate warehouse operations at Scatec Solar (Tunisia)

👩🏻‍💻 Become Solar Panda’s Human Resource Business Partner (Kenya)

👨🏻‍💼 Join Sun King as a Product Operations Associate (Nigeria)

Various 

🟢 Namibia pioneers green iron production in Africa with new plant

💰 DBSA provides financial backing for South Africa's flagship wind farm

🛠️ Solar panel and lithium battery production to begin in Zimbabwe

Seen on LinkedIn 

Thomas Kingombe, Managing Partner & Director at Boston Consulting Group, says, “Financial returns from credit trading can help fund alternative energy projects — solar, wind, hydro — that support national resilience and energy security.”