Stakeholders push for enhanced gov't support in renewable energy transition

The industry players who gathered at the at the Powerelec 2024 Conference in Nairobi called for tax incentives, financing options, and targeted outreach to make clean energy accessible across Kenya.

Kigen Kiplimo, Head of Policy Research at the Kenya National Chamber of Commerce and Industry (KNCCI) emphasized the high cost of electricity as a burden for many businesses, pushing them to invest in off-grid solar solutions.

"Reducing or eliminating VAT on commercial energy is essential to help local businesses compete regionally," said Kiplimo

Engineer Benson Mwakina, Director of Renewable Energy at the Ministry of Energy and Petroleum, reassured stakeholders of ongoing efforts to boost renewable energy. 

“We’re committed to expanding clean energy and are actively working on grid stabilization and public-private partnerships to manage long-term costs,” Mwakina stated.

He also noted that high capital expenditure (CAPEX) remains a challenge, but collaboration with financial institutions aims to ease access to renewable energy financing, particularly for rural areas and small businesses.

The private sector is also taking bold steps. Many companies, like East African Breweries Limited (EABL) and British American Tobacco (BAT), have invested in solar energy to lower operational costs. 

Prinaven Naidoo, a senior manager at SunGrow, a global solar and battery tech provider, said international energy firms view Kenya as a promising renewable energy market. 

"Kenya’s policies are favourable, but more incentives are needed to accelerate adoption in high-cost urban areas" said Naidoo,

“With Kenya’s commitment to clean energy, we’re seeing a viable market for our solar and storage solutions, which could help stabilize the grid and make energy affordable,” added Naidoo.

Stakeholders urged the government to launch initiatives to inform rural communities and provide financing for solar and mini-grid technology. Naidoo noted that government-backed financing could make solar power affordable for more households, reducing grid reliance.

Participants also recommended tax relief on renewable equipment imports to attract more foreign investment into Kenya's energy sector.