The Ministry of Energy has mobilized nearly KSh50 billion to connect one million new customers to electricity over the next two years.

The plan aims to push overall coverage to 80 percent and reduce reliance on biomass, currently used by 68 percent of the population for cooking which contributes to carbon emissions and health risks.

Principal Secretary (PS) for Energy, Alex Wachira, revealed these plans during an interview with The Standard at the 15th Assembly of the International Renewable Energy Agency (IRENA) in Abu Dhabi.

“We have one program funded by the French Development Bank, a combination of – Agence Française de Développement (AFD), – European Investment Bank (EIB), European Union(EU), that gave us about 22 billion shillings,” he said.

He then added that a second program, the World Bank’s Kenya Solar Access Program aimed at building mini-grids in 14 northeastern counties, provided another Sh12 billion. According to PS Wachira, these two programs alone total Sh34 billion.

He stressed government funding as well. “Then we have Government of Kenya (GoK)-funded projects that got about Sh5 billion annually last month. So the next financial year, we’ll also be adding another Sh12 billion, and that will push our numbers to 48 billion shillings,” he noted.

Combining all sources, including future allocations, he estimated the final figure at between 48 and 50 billion shillings for the years 2025 and 2026.

Wachira explained that this mobilization of funds would connect one million new customers to electricity. He stated,

Kenya’s energy sector faces multiple challenges. Only 33 percent of the population has access to electricity, and renewable sources like wind and solar remain intermittent.

Wachira noted that Kenya has 3,280 megawatts of interconnected power, of which 645 megawatts come from wind and solar.

 He explained, “Sometimes you have the wind and solar resources, and sometimes you don’t. That’s why we need battery energy storage. When we have low demand at night, we can store power and dispatch it during the day when it’s needed.”

He also discussed the concept of “firm capacity,” which he defined as reliable power available on demand at any time. Kenya’s firm capacity primarily comes from geothermal and hydropower, totaling about 2,368 megawatts.

 “Because of variable renewable technology, we are embracing battery energy storage and looking at mixing more resources into our grid. Our tariff model is ‘take or pay,’ so when power is available for generation, we pay for it. Storing excess energy will help us dispatch electricity when demand is high.”

Transmission constraints add another layer of complexity. Kenya has two thermal power plants along the coast, with a combined capacity of 320 megawatts, which must operate to support voltage stability.

“We already have rising manufacturing costs due to power stability issues,” said Wachira.

He noted that natural gas might serve as a transition fuel. “We’re considering putting up a gas plant in the coast region as a medium-term solution. By then, we hope to add more green generation like solar or nuclear, since our two proposed sites for nuclear power are also on the coast.”

The PS explained ongoing projects to expand grid coverage. He mentioned a Sh900 million investment to extend the grid to Lodwar, enabling the government to switch off diesel generators in the area, including those in Kakuma.

He also cited plans to connect Marsabit and Isiolo through financing discussions with the Exim Bank of China. “Once we secure funding, we can link places like Wajir, Lamu, Lowdar, and Mandera to the grid. Eventually, this means nationwide coverage,” he said.

Wachira addressed concerns about heavy reliance on foreign financing. “Energy financing is capital-intensive,” he said. “We rely on multilateral and bilateral lenders, plus the government balance sheet. This combination will push our energy transition to net zero by 2050. We are also embracing electric mobility. The guidelines are in place, and so is the tariff.”

“Once power plants dispatch to the grid, they earn revenue. Transmission lines also earn wheeling tariffs. This helps the government repay the debt without burdening taxpayers. Energy is an enabler,” he noted.

Kenya also eyes green hydrogen as a future prospect. Wachira observed that the national peak demand sometimes falls by 1,000 megawatts at night. “We could store or use that surplus to produce green hydrogen, which can be used for domestic fertilizers or sold internationally,” he said.

In the short term, the ministry will build or upgrade 89 transmission lines, of which financing is already secured for 15. Eleven lines are set to be commissioned this year.