Sources of information (access sources by clicking blue links)

Kenya Country Report (FINPRO) Kenya Country Update (Rabobank) Country Transformation Level (BTI Group) Economic Outlook – Kenya (AfDB, UN, OECD) Country Risk Classification (Finnvera) Doing Business in Kenya (World Bank) The Kenya Institute for Public Policy Research & Analysis The Kenya National Chamber of Commerce & Industry, Mombasa KENYA & NGOs Coordination Board Kenya Country at-a-glance Kenya Government

Energy sector IEA Energy Balances Energy Profile Kenya - Clean Energy Info Portal IRENA – Kenya Renewable Energy Country Profile Kenya: Energy Resources Ministry of Energy Least Cost Power Development Plan (LCPDP) Rural Electrification Programme in Kenya Sessional Paper on Energy The Energy Act of 2006 Feed-in-Tariff Policy on Renewable Energy National Climate Change Response Strategy Rural Electrification Authority (REA) The Energy Regulatory Commission (ERC)

Projects Republic of Kenya Kenya Programs (Open Energy Info) Independence 1963 from UK Area 580 370 km2; 7 provinces + Nairobi Area Co-creation of network modes for 41,61 million (2011); Growth: 3 % (2011) Population 2 market entry in developing countries – Density: 69 people/km (2010) Finnish renewable energy SME’s Language Official: English, Kiswahili Literacy rate 87 % (2010 est.)

Sectors (% of GDP) 23 % agriculture, 19 % industry, 58 % services Homepage: http://www.laurea.fi/en/connect/ Nairobi - capital (3,5 mil) Major cities Mombasa (1 mil), Kisumu (0,8 mil) Project manager Nakuru (1,4 mil), Eldoret (0,3 mil) Dr. Birgit Aurela Source: World Bank, CIA, Rabobank Laurea University of Applied Sciences Vanha maantie 9, FIN - 02650 Espoo GSM +358 40 566 2910 [email protected]

Business Environment Renewable energy in Kenya

GDP (current US$): 33,62 billion (2011) More than 90 % of population access to GSM (2009) GNI per capita (PPP): $1 720 (2011) Infrastructure will require $4 billion/year Hydroelectric 2 148 mil. kWh Solar, Tide and Wave 0 GDP growth (annual): 5 % (2011) About 50 % of population is living in poverty Geothermal 1 272 mil. kWh Biomass and Waste 305 mil. kWh Leading economy in Threats from instability of neighboring countries Wind 1 mil. kWh Source: World Bank, CIA, Rabobank Source: US Energy Information Administration

 Increased regional trade and an on-going boom in tourism, telecommunications and banking Renewable Energy Policy are indications of improving economic perspectives. Main policies concerning energy sector are Least Cost Power Development Plan (LCPDP), Rural  Poor infrastructure, widespread corruption, a large informal sector, high unemployment and Electrification Master Plan, Sessional Paper No. 4 of 2004 (The energy policy document),The Energy an unskilled labour force continue to complicate entrepreneurship in Kenya. Act of 2006, The Feed-in Tariff (FiT) Policy, The Kenya National Climate Change Response Strategy,  Though stricken with poverty and hardships, the people of Kenya are generally literate. It's (the National economic development blueprint).

estimated that approximately 90 % of adult males and 80 % of adult females are able to read To meet the increased electricity demand there are targets to build new capacity 5,110 MW from and write. While the basics are covered, more advanced education is not as widespread. geothermal, 1,039 MW from hydro, 2,036 MW from wind, 3,615 MW from thermal, 2,000 MW from  Although the services industry comprises almost 60 % of GDP, the vast majority (75 %) of imports, 2,420 MW from coal and 3,000 MW from other sources. Kenyans are employed in the agricultural sector. Kenya’s main export products are tea,  Feed-in-Tariffs (FiT introduced in 2008 and revised in 2010) Policy has been formulated to agricultural products, and coffee. promote renewable energy solutions (incl. wind, biomass, small hydro, geothermal, biogas Kenya and Finland and solar and municipal waste energy). Under the FiT system, investment security and market stability for investors in electricity generation from renewable energy solutions is provided  A partly Finnish owned pharmaceutical company exists in Kenya that has received funding whilst encouraging private investors to operate their power plants prudently and efficiently to from Finnfund. Also Nokia has an office in Nairobi. maximize returns.  Finland has an embassy in Nairobi and an Honorary Consulate in Mombasa.  The Government intends to set up a Green Energy Facility to pool donor contribution which will help firms and other institutions to generate clean energy and manufacture energy- efficient appliances. The Facility will lend funds to viable projects at concessional rates. The Government has zero-rated import duty and removed Value Added Tax (VAT) on renewable energy, equipment and accessories.

Renewable energy resources Solar energy: Solar energy potential in Kenya is high. Kenya receives daily insolation of 4-6kWh/m2. Solar utilization is mainly for photovoltaic systems (PVS), drying and water heating. The Solar PV systems State of Energy sector (supply/demand) are mainly for telecommunication, cathodic protection of pipelines, lighting and water pumping. Major sources of commercial energy in Kenya are , geothermal and hydro energy. 75 % of Current installed capacity is approximately 4 MW. There are also approximately 140,000 solar water population use traditional solid fuels in residential sector for heating, light and cooking. 17 % of heating systems currently installed in the country. energy used in Kenya was imported in 2009. Only 0.16 % of electricity was imported. 16 % of the Wind energy: population had access to electricity in 2009. Urban electrification level was 51% and rural Kenya has average estimated wind speeds of 3-10m/s. There is large potential for wind energy electrification level 4%. Kenya has weak and restricted transmission and distribution network. production. Highest potential is in northern and eastern part of the country. Kenya’s wind installed Kenya’s electricity mix is dominated by hydro generation (over 50%) and thus highly vulnerable to capacity is 5.1 MW operated by KenGen at the Ngong site. It is estimated that about 300-350 wind weather conditions and climate change. pumps have been installed in the country. Biomass energy: Biomass density in Kenya is moderate. There is potential to produce biomass for modern energy production. The government has identified substantial potential for power generation using forestry and agro-industry residues including bagasse. Geothermal energy: Geothermal resources in Kenya are located within the Rift Valley with an estimated power potential of between 7,000 MW to 10,000 MW spread over 14 prospective sites. Geothermal is reliable way to produce energy, it’s not affected by climatic variability and it doesn’t need transported fuels. It is suitable source for base load electricity generation in the country.