Kenya pushes the boundaries of Africa’s energy transition

Ke nya has long been one of the most open markets in subSaharan Africa, but private investors in the country’s power sector are not having an easy ride. Power tariffs are being pushed downwards, with the most recent solar power purchase agreements (PPAs), signed earlier this year, reaching $0.075/kWh, despite government support for payments from the utilities it controls being steadily diluted. Companies frequently find policymaking opaque and must contend with unexpected rule changes and the endless renegotiation of documentation. Owners of thermal peaking plants have been threatened with tariff renegotiations, while the government has asked the Energy and Petroleum Regulatory Authority to ensure the plants are not used unless absolutely necessary.