In an event to mark the 2024/25 financial year, the Energy and Petroleum Regulatory Authority (EPRA) has presented a robust report from the various players in the petroleum and energy sector, underscoring Kenya’s continued growth in renewable energy and infrastructure development.
The report provides an in-depth analysis of the performance of the electricity, petroleum, Liquefied Petroleum Gas (LPG) and renewable energy subsectors, offering critical insights into trends and developments shaping Kenya’s energy landscape.
EPRA Director General (DG) Daniel Kiptoo reiterated the need for sustainable energy practices, stating, “Kenya is on track to becoming a leader in renewable energy, and we must continue investing in cleaner and more efficient energy sources.”
Kiptoo added that the energy and petroleum sector in Kenya keeps evolving, adding:
“As of December 2024, the country has seen encouraging shifts such as a 7.12 percent growth in local petroleum demand, a commencement of power transmission through the Isinya-Arusha-Singida 400kV line, and a 480.65 percent increase in electricity consumption under the electric mobility tariff,” highlighted the DG.
Meanwhile, the report as revealed by the Director of Economic Regulations and Strategy, Dr. John Mutua, highlights a significant increase in electricity generation, with renewable sources now accounting for over 80 percent of the national supply.
Dr. Mutua observed from the report a decline in global crude oil prices primarily driven by slowed global economic growth and reduced fuel demand in China. This trend, he said, has resulted in a steady decrease in local fuel prices, greatly benefiting consumers.
The report further reveals that Kenya’s electricity generation has increased by 6.13 percent, reaching 7,222.37 GWh. Geothermal energy remains the dominant source, contributing 39.81 percent of total generation, while hydro and wind accounted for 24.74 percent and 13.46 percent, respectively.
Dr. Mutua noted that electricity imports rose to 751.95 GWh, accounting for 10.41 percent of total consumption, driven by the full commercial operation of electricity imports from Ethiopia and the initiation of energy exchange with Tanzania.
Peak demand hit 2,288.35 MW on October 29, 2024, sustaining levels above 2,200 MW throughout the period.
Additionally, he disclosed that electricity access has expanded with 194,654 new connections, bringing the total grid-connected customers to 9.85 million.
Further, he pointed out that hydropower and geothermal energy remain dominant, while on the other hand, solar and wind energy capacities continue to expand.
The report also showed that improvements in infrastructure and maintenance have led to a notable decline in power outages.
In the petroleum sector, Dr. Mutua stated that Kenya’s fuel imports have surged to meet rising demand in the transport and industrial sectors.
With new regulatory guidelines for energy efficiency across industries, policymakers and investors are expected to align with EPRA’s vision for a more sustainable future. The report serves as a crucial resource for stakeholders navigating the evolving energy landscape in Kenya.
By Gabriel Mwangi and Jesee Otieno
