KenGen Expands Renewable Energy Pipeline to 5,500MW

KenGen has expanded its renewable energy development pipeline to 5,500 megawatts (MW), more than tripling its previous target, as Kenya seeks to strengthen its position as a regional clean energy hub and meet rising domestic and regional electricity demand.

The revised target, announced during the launch of the company's inaugural Sustainability Report, marks a major shift from the 1,500MW goal contained in its G2G 2034 Corporate Strategy and reflects growing investment opportunities, evolving national energy priorities and increasing demand for low-carbon electricity across East Africa.

The state-owned power producer said the expanded pipeline will draw on multiple renewable and low-carbon sources, including a planned 2,000MW nuclear programme, more than 700MW of additional hydropower capacity and expanded geothermal development.

The move comes as Kenya continues to position renewable energy as a key driver of industrialisation, regional electricity trade and economic growth.

Growing investment opportunities reshape KenGen's long-term strategy

Speaking at the launch of the report in Nairobi, KenGen Managing Director, Peter Njenga, said the company had reviewed its long-term strategy in response to changing market conditions and new investment opportunities.

"Our inaugural Sustainability Report is more than a record of our ESG performance; it reflects a company that is responding decisively to a changing energy landscape," he said.

"As opportunities have expanded, so too has our ambition. We have strategically recalibrated our long-term growth trajectory from 1,500MW to a 5,500MW renewable energy development pipeline, reaffirming our commitment to powering Kenya's sustainable economic transformation."

Principal Secretary for Energy, Alex Wachira, said the expansion would strengthen Kenya's attractiveness to investors seeking reliable and competitively priced renewable energy.

He stated that the government's objective extends beyond electricity generation to creating an industrial ecosystem supported by clean energy, geothermal resources and modern infrastructure.

"This is a practical demonstration of how energy can move beyond powering homes to powering factories, creating jobs, attracting investment and strengthening Kenya's manufacturing base," Wachira said.

He added that the government would continue providing policy support while state agencies, private investors and development partners collaborate to accelerate energy investments.

Sustainability report Prompts environmental and social progress

Apart from outlining its expansion plans, KenGen's first Sustainability Report provides a snapshot of its environmental, social and governance (ESG) performance during the 2024/25 financial year.

According to the report, renewable sources accounted for 94.4 per cent of the company's electricity dispatch during the period, while its operations generated 6.9 million carbon credits. KenGen also reported a carbon intensity of 0.06089 tonnes of carbon dioxide equivalent per megawatt-hour, placing it among Africa's lowest-emitting electricity producers.

The company said it produced more than 887,000 tree seedlings during the year, exceeding its annual target, and restored 850 hectares of degraded land. It has planted over four million trees to date and aims to increase that figure to nine million by 2034.

The report also highlighted broader social investments, including scholarship support for 237 students, improved access to clean water for more than 42,000 households and procurement opportunities worth KSh10.01 billion awarded to local suppliers.

Prepared in line with the Global Reporting Initiative Standards, the UN Global Compact principles and the Nairobi Securities Exchange's ESG disclosure guidelines, the report establishes a framework for annual sustainability reporting while reinforcing KenGen's commitment to transparency, responsible business practices and long-term value creation.

KenGen said the expanded renewable energy pipeline aligns with Kenya's broader ambition of delivering affordable, reliable and clean electricity while reinforcing the country's role as one of Africa's leading renewable energy producers.