KenGen has increased its long-term renewable energy development pipeline to 5,500MW, significantly expanding its previous target as Kenya accelerates its clean energy ambitions. Announced alongside the company’s inaugural Sustainability Report, the revised strategy highlights strong ESG performance, growing renewable generation, carbon credit production, environmental restoration, and social investment while positioning Kenya as a regional clean energy and green industrialisation hub.

Key Overview

• KenGen expanded its renewable energy pipeline to 5,500MW.
• The revised strategy includes nuclear, hydropower, geothermal and other renewable projects.
• The company launched its first Sustainability Report.
• Renewable sources accounted for 94.4% of electricity dispatch.
• KenGen generated 6.9 million carbon credits during the reporting period.

Renewable Expansion Supports Kenya’s Clean Energy Vision

Kenya Electricity Generating Company (KenGen) has significantly expanded its long-term renewable energy development pipeline to 5,500MW, reinforcing Kenya’s ambition to become one of Africa’s leading clean energy producers while supporting industrial growth, regional electricity trade, and long-term climate resilience.

The revised target represents a substantial increase from the 1,500MW objective outlined in the company’s G2G 2034 Corporate Strategy, reflecting new investment opportunities, evolving energy market conditions, and rising regional demand for affordable renewable electricity. The announcement was made during the launch of KenGen’s inaugural Sustainability Report, which reviews the company’s environmental, social and governance (ESG) performance for the 2024/25 financial year.

Strategy Responds to Growing Energy Demand

According to KenGen, the expanded development pipeline reflects both changing market dynamics and Kenya’s growing role within East Africa’s energy transition.

The proposed capacity includes approximately 2,000MW of nuclear power, more than 700MW of hydropower, expanded geothermal development, and additional renewable energy projects designed to strengthen long-term electricity supply.

While the company has not disclosed the total investment required or implementation timelines, the revised strategy signals a significant scaling up of Kenya’s future clean energy infrastructure.

KenGen Managing Director and Chief Executive Officer Peter Njenga said the inaugural Sustainability Report represents more than a disclosure document, describing it as a roadmap for long-term value creation and responsible energy development.

According to Njenga, the company’s ambitions continue to evolve as new investment opportunities emerge across multiple renewable technologies.

Strong Financial Performance Supports Growth

KenGen enters this expansion from a position of strong operational performance.

The company currently operates approximately 1,786MW of installed capacity, with hydropower and geothermal energy contributing the largest share of its generation portfolio.

For the financial year ending June 30, 2025, KenGen reported a net profit of KES10.48 billion, representing a 54% increase compared with the previous financial year.

The company said its strong financial performance provides a solid foundation for supporting future renewable energy investments while maintaining reliable electricity generation.

Unlike many state-owned utilities across sub-Saharan Africa that continue to face financial pressures, KenGen has maintained profitability alongside expanding renewable generation.

Renewable Energy Dominates Generation Portfolio

The Sustainability Report highlights the company’s continued progress in renewable electricity generation.

During the reporting period, renewable energy sources accounted for 94.4 per cent of KenGen’s total electricity dispatch, reinforcing Kenya’s position among Africa’s cleanest electricity systems.

The company also generated approximately 6.9 million carbon credits while maintaining a carbon intensity of 0.06089 tonnes of carbon dioxide equivalent per megawatt hour, one of the continent’s lowest emissions levels for electricity generation.

These environmental performance indicators are becoming increasingly important as investors, governments, and development finance institutions place greater emphasis on ESG reporting and climate disclosure standards when financing infrastructure projects.

Environmental Restoration Continues

Beyond electricity generation, KenGen continues investing in environmental conservation and ecosystem restoration.

According to the report, the company produced 887,220 tree seedlings during the reporting year, exceeding its annual target while restoring approximately 850 hectares of degraded land surrounding its operational sites.

KenGen has now planted more than four million trees and aims to increase that figure to nine million trees by 2034, supporting Kenya’s broader landscape restoration and climate resilience objectives.

The environmental initiatives complement the company’s wider sustainability strategy by protecting biodiversity while strengthening ecosystem health around renewable energy facilities.

Context is everything. Stay ahead of shifting trends with today’s market updates, and uncover emerging opportunities using the Serrari Group Market Index and Marketplace. Then, take control of your own financial future by exploring our Money & Life Reset Transformation Blueprint ™ to build stronger habits, create better systems, and design a path toward lasting wealth.

Community Investment Remains a Priority

The Sustainability Report also highlights KenGen’s ongoing investment in local communities.

Through the KenGen Foundation, the company provided scholarships to 237 students, helping improve access to education.

It also expanded access to clean water for more than 42,300 households, while awarding procurement contracts worth KSh10.01 billion to local suppliers, representing 69 per cent of total procurement expenditure.

These programmes form part of KenGen’s broader commitment to ensuring renewable energy development delivers both economic and social benefits for surrounding communities.

Governance Supports Sustainable Growth

KenGen also reported strong governance performance throughout the reporting period.

According to the Sustainability Report, the company achieved a 100 percent score in governance and transparency assessments covering complaints management and public access to information.

The report was prepared in accordance with the Global Reporting Initiative (GRI) Standards, the UN Global Compact principles, and the Nairobi Securities Exchange ESG Disclosure Guidelines, establishing a foundation for annual sustainability reporting aligned with internationally recognised disclosure frameworks.

Principal Secretary for Energy Alex Wachira noted that Kenya’s growing renewable energy investments are helping create an ecosystem that extends beyond electricity generation by supporting manufacturing, industrial competitiveness, and sustainable investment.

He added that competitively priced renewable electricity, geothermal resources, industrial infrastructure, and reliable transmission systems continue to strengthen Kenya’s attractiveness as a regional investment destination.

Renewable Energy Supports Regional Growth

KenGen’s expanded renewable energy ambitions align with Kenya’s broader strategy of positioning itself as a regional exporter of clean electricity.

As electricity demand continues to grow across East Africa, expanded renewable generation could strengthen cross-border electricity trade through regional power interconnection initiatives while supporting industrialisation, electric mobility, green manufacturing, and long-term energy security.

The revised 5,500MW development pipeline therefore represents not only an increase in generating capacity but also a strategic commitment to using renewable energy as a foundation for sustainable economic growth and climate resilience across the region.

Outlook

KenGen’s decision to expand its renewable energy development pipeline to 5,500MW reflects Kenya’s growing ambition to position clean energy at the centre of its long-term economic transformation. Combined with strong ESG performance, increasing carbon credit generation, environmental restoration, and community investment, the strategy strengthens Kenya’s reputation as one of Africa’s leading renewable energy markets. As regional electricity demand continues to rise and global investment increasingly favours low-carbon infrastructure, KenGen’s diversified renewable portfolio is expected to support industrial growth, regional energy security, and the country’s transition toward a more resilient and sustainable economy.

FAQs

1. Why did KenGen increase its renewable energy pipeline?

The company expanded its pipeline to respond to new investment opportunities, changing market conditions, and growing demand for renewable electricity across East Africa.

2. What projects are included in the 5,500MW pipeline?

The pipeline includes approximately 2,000MW of nuclear power, more than 700MW of hydropower, expanded geothermal development, and other renewable energy projects.

3. How much of KenGen’s electricity comes from renewable sources?

Renewable sources accounted for 94.4% of the company’s total electricity dispatch during the 2024/25 financial year.

4. What sustainability achievements were highlighted in the report?

The report highlights 6.9 million carbon credits generated, 887,220 tree seedlings produced, 850 hectares restored, scholarships for 237 students, and clean water access for more than 42,300 households.

Sources: Africa Business Communities, Ecofin Agency, Business Voice, Africa Sustainability Matters 

Your financial future isn’t something you wait for—it’s something you build.
The real question is: when do you begin?

Move beyond simply staying informed.
Navigate the markets with clarity—track trends through the Serrari Group Market Index, uncover opportunities in the Serrari Marketplace, and build practical knowledge with our Curated Wealth Builder Platform.

Stay connected to what truly matters.
Get daily insights on macro trends and financial movements across Kenya, Africa, and global markets—delivered through the Serrari Newsletter.

Growth opens doors.
Advance your career through professional programs including ACCA, HESI A2, ATI TEAS 7 , HESI EXIT  , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟—designed to move you forward with confidence.

See where money is flowing—clearly and in real time.
Track Money Market Funds, Treasury Bills, Treasury Bonds, Green Bonds, and Fixed Deposits, alongside global and African indexes, key economic indicators, and the evolving Crypto and stablecoin landscape—all within Serrari’s Market Index.