Energy Africa: Kenya, Compact Development and Final Report

Abstract

Kenya has one of the largest markets in Africa for small-scale solar photovoltaics (PV) products. Given limited grid connectivity and high demand for lighting and phone charging, off-grid solutions such as solar home systems (SHS) and pico-solar have thrived in Kenya, driven primarily by over-the-counter sales. Lighting Africa has calculated approximately 2.7 million systems sold in total in the country. The private sector has played a pivotal role in this success, with an increase in the penetration of off-grid solar solutions from 5% in 2009 to 20-25% in 2015. Factors include a favourable tax regime, emergence of a home-grown global leader in mobile-phone based “pay as you go” (PAYG) solar access and the success of a local solar manufacturer / assembler that supplies the lion’s share of solar systems in the East African region. The Kenyan government is receptive to new approaches to off-grid electrification and is pro-private sector. They set an ambitious target to achieve universal electrification by 2030, building on great strides in increasing electricity access since 2009 This report presents these challenges and proposed actions in more detail, and outlines the main implementing partners. The Department for International Development will lead the implementation, working in close coordination with the Ministry of Energy and Petroleum (MoEP) and alongside a core group of stakeholders who have endorsed the Compact and stand ready to contribute. This research is part of ‘Technical Assistance Facility to Deliver Africa Energy Compacts’ programme