NAIROBI, Kenya, Feb 24 – Kenya Electricity Generating Company (KENGEN’s) market share in Kenya’s electricity production sector has shrunk to 62 percent in 2022 up from 66 percent in 2021 on the increased establishment of more Independent Power producers (IPPs) who have taken a pie of the sector.
The Energy Petroleum Regulatory Authority (EPRA) indicates that while KENGEN remains the largest power producer, the IPPs market share has risen and now accounts for 35.95 percent of the generation capacity up from 33.58 percent in 2021.
In what is seen as a shift from the initial strategy where power generation was mainly financed by public coffers, the Government has increasingly commissioned new IPPs including Kipeto Energy Limited’s 100MW wind power plant, 0.5 MW Hydropower plant by Kianthumbi Hydro, and 40MW Solar Power plant by Selenkei Energy Limited.
According to the Energy and Petroleum Statistics Report 2021, KENGENS’ share of electricity generation had increased to 65.8 percent in 2021 from 63 percent in 2020 while IPPs share slightly decreased to 33.57 percent from 36 percent in 2020.
Speaking during the release of the annual report, John Mutua, the acting Director, Economic Regulation attributed the decreased share of KENGEN to “fair regulation and conducive energy policies which boost private investments in electricity generation.”
Overall, the report showed that the total installed electricity capacity in the country, including off-grid power, was 2,984 Mega Watts (MW) as of May 2021.
EPRA Director-General, Mr. Daniel Kiptoo, who spoke during the release of the report lauded the increased power generation from renewable sources which accounted for 92.3 percent noting it puts Kenya on a global map as a leader.
Electricity generation from geothermal, hydro, and wind power sources accounts for 43.6, 36.5, and 11.5 percent of electricity respectively.
“Kenya’s energy sector has experienced tremendous growth and development since independence with paradigm shifts occurring over time in the regulations and structures of utilities in both the electricity and petroleum sub-sectors.
The regulator further noted that the COVID-19 pandemic saw a 9.1 percent decline in the demand for electricity use in Kenya from 1,926MW in February 2020 to 1,765MW in April 2020
“The onset of the COVID-19 pandemic in the second half of the 2019/20 financial year and subsequent government containment measures created economic shocks, adversely affecting the energy sector,” the report indicated.
Nonetheless, it noted that easing of the containment measures saw a peak in electricity demand which rose by 3.5 percent to 1994MW on June 2021 against a total installed capacity of 2984 MW.
According to the report, Solar energy is also gaining traction with the existence of the World Bank-financed Kenya Off-Grid Access Project (KOSAP) which has eased the provision of electricity and clean cooking facilities across the country.
“The high level of use has been through the sale of products which best fit the purchasing power of rural households and making such products easily accessible to potential consumers,” the report noted.
Government-owned Garissa Solar power and Cedate solar with a cumulative capacity of 94.5 MW being are the only solar plants connected to the national grid.
