Kenya's Solar Energy Market: Off-Grid Microgrids Lead, MW - Scale Projects Begin Tendering

The Kenyan government is spearheading an energy transformation in 14 marginalized counties through innovative off-grid solar solutions. In late February 2025, at the launch event held at the Stima Club in Nairobi, President William Ruto witnessed the signing of contracts for off-grid microgrid projects.


The contracts, valued at 10 billion Kenyan shillings (about $77.1 million), cover the construction of 113 solar microgrids and 343 public facility solar systems. This marks the final implementation phase of the Kenya Off-Grid Solar Access Project (KOSAP), a $150 million initiative launched by the World Bank in 2018.

Kenya's Solar Energy Market: Off-Grid Microgrids Lead, MW - Scale Projects Begin Tendering

Source:www.mygov.go.ke, March 18. 2025

KOSAP is a collaborative initiative involving the Ministry of Energy and Petroleum, Kenya Power, and the Rural Electrification and Renewable Energy Corporation (REREC), with funding from the World Bank. President Ruto emphasized that with World Bank support, Kenya's electricity access rate has risen from 29% in 2013 to 75% today. The country is committed to achieving a 100% clean energy grid by 2030.


I. Solar Microgrid Projects with Broad Support


This comprehensive energy program, jointly promoted by the Ministry of Energy and Petroleum, Kenya Power, and REREC and funded by the World Bank, covers 14 counties that have long suffered from power shortages. At the signing ceremony, Alex Wachira, the Principal Secretary of the Ministry of Energy, stressed, "This project will transform the lives of communities that have been in darkness. We expect these facilities to be completed within 15 months, bringing transformative benefits to households, schools, and healthcare facilities."


Kenya's Solar Energy Market: Off-Grid Microgrids Lead, MW - Scale Projects Begin Tendering


Source:Kenya Off-Grid Solar Access Project in 113 Solar-Powered Mini-Grids: Expected to Benefit Over 1M Kenyans


The contracts consist of 14 worth 9.4 billion Kenyan shillings (about $72.5 million) for developing 113 solar microgrids in 12 counties, and 6 worth 438 million Kenyan shillings (about $3.3 million) for installing solar systems in 343 public facilities across 13 counties.

The project's technical framework has five pillars:

1. Microgrid Development: Deploying 113 solar microgrids in 12 counties

2. Household Solar PV: Sales of 178,598 home solar systems, serving about 900,000 people

3. Clean Cooking Solutions: Promoting 12,486 clean stoves to improve indoor air quality

4. Public Facility Solar: Installing solar systems in 343 healthcare facilities, schools, and government offices

5. Solar Water Pumps: Installing solar pumps for community boreholes to ensure clean water supply


II. Microgrids Bring Energy Blessings to Island Communities


On January 14, 2025, a 737 kWp solar microgrid was commissioned on Wasini Island, becoming the first case of the Kenya Electricity Modernization Project (KEMP). This 350 million Kenyan shilling ($2.7 million) project includes 1,820 solar panels with a capacity of 737 kWp and 247 lead-acid batteries with a total capacity of 2,276 kWh. It also features an 11.02 km distribution network, providing stable power to the island's 4,000 residents for the first time. The system has three transformers and a hybrid power supply with a 70 kVA diesel backup generator to ensure energy security in extreme weather.


III. Key Steps in Fossil Fuel Replacement


In mid-February 2025, President William Ruto announced that the Lodwar diesel power station in Turkana County would be retired within a year, replaced by a 100 km, 66 kVA transmission line and substation construction. This 900 million Kenyan shilling ($6.95 million) investment is part of the national clean energy transition strategy, along with an 8 MW solar expansion plan in Wajir County. Data shows Kenya's existing off-grid diesel power stations consume over 22 million liters of fuel annually, costing the government 4.3 billion Kenyan shillings ($33.2 million).


IV. Western Grid Reinforcement Project Proceeding Concurrently


To address a record peak electricity demand of 2,316 MW (equivalent to 38% of the country's total installed capacity), Kenya Power is investing nearly 1 billion Kenyan shillings ($7.7 million) to upgrade grid infrastructure in 11 western counties. Key projects include:

• The Narok-Bomet 132 kV line (700 million Kenyan shillings)

• The Kibos-Miwani-Ahero 33 kV interconnection (189 million Kenyan shillings)

• The Ndhiwa-Thur Dibuoro 132 kV line (to be completed by June 2025)


V. Market Vitality and Challenges Coexist


Under policy incentives (solar equipment import tariffs have been removed, reducing component costs by 22%), Kenya's solar industry is booming:

• In the second half of 2023, 1.2 million solar devices were sold (including 83% pay - as - you - go solar lanterns), up 17% year - on - year

• Solar power's share of generation rose from 0.3% in 2013 to 4% in 2023 (still below the Netherlands' 17%, despite Kenya having 1,600 annual sunshine hours)

• In the first half of the 2024 financial year, Kenya Power achieved a net profit of 9.97 billion Kenyan shillings ($77 million), mainly due to a 5% increase in electricity sales to 5,506 GWh

The company is using a geographic information system (GIS) covering 320,000 km of grid to address 23.65% transmission losses and precisely locate aging lines. By the end of 2023, Kenya had deployed 358 MW of solar power. This year, two 40 MW - scale solar projects (Isinya and Makueni) have been launched for EPC bidding by local consultants Apex, requiring bidders to have experience in large - scale African projects.


VI. Global Vision for Energy Ambitions


With its equatorial location (over 2,800 annual sunshine hours), Kenya is steadily advancing toward its 2030 goal of 100% clean energy. The International Energy Agency forecasts that the country's solar installation will grow at an annual rate of 28% between 2025 and 2027. As the government's fiber - optic network connects 6,000 agencies, the integration of digital technology and clean energy is reshaping the East African energy landscape.



Kenya's Solar Energy Market: Off-Grid Microgrids Lead, MW - Scale Projects Begin Tendering



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