KenGen Raises Its Renewable Target to 5,500MW, Unveils Sustainability Blueprint for Kenya's Green Energy Transition

In Summary:

Kenya Electricity Generating Company (KenGen) has significantly expanded its renewable energy development target from 1,500MW to 5,500MW, unveiling an ambitious long-term clean energy strategy anchored on geothermal, hydropower, nuclear energy and battery storage. The announcement accompanied the release of the company's first Sustainability Report, highlighting strong environmental, social and governance (ESG) performance, major climate action achievements, and a renewed commitment to powering Kenya's economic growth through sustainable energy investments.

Also Read: Kenya Launches Ambitious 10year plan to restore mount elgon

Also Read: How Kenya Marked Mazingira Day with nationwide push for fruit trees

Kenya Electricity Generating Company (KenGen) has unveiled an ambitious roadmap that will see its renewable energy development pipeline grow nearly fourfold to 5,500 megawatts (MW), positioning the State-owned power producer at the centre of Kenya's long-term clean energy ambitions.

The announcement was made during the launch of the company's inaugural Sustainability Report at Karura Forest, where government officials, industry stakeholders and development partners gathered to assess KenGen's environmental, social and governance (ESG) progress while outlining its future growth strategy.

The expanded renewable energy pipeline represents a major shift from the company's previous 1,500MW development target and will be driven by increased investments in geothermal power, hydropower, nuclear energy and battery energy storage systems to strengthen electricity reliability and support future industrial demand.

Speaking during the launch, Principal Secretary for Environment and Climate Change Dr. Eng. Festus Ng'eno described the report as evidence of the growing role that responsible corporate leadership must play in helping Kenya achieve its climate commitments.

He noted that organisations are increasingly expected to go beyond financial performance by demonstrating measurable environmental stewardship, social responsibility and transparent governance.

According to the Principal Secretary, sustainability reporting has evolved into an essential management tool that enables institutions to identify risks, improve accountability, strengthen stakeholder confidence and build resilience against emerging environmental and economic challenges.

KenGen Managing Director and Chief Executive Officer Eng. Peter Njenga said the publication of the company's first Sustainability Report marks a defining chapter in its more than seven decades of operations, reflecting a deliberate shift towards sustainable growth and greater transparency.

He explained that the revised renewable energy target aligns with Kenya's vision of accelerating industrialisation while supporting the country's transition to a low-carbon economy.

Njenga said the company's future investments extend beyond electricity generation, adding that the planned projects are expected to stimulate employment, attract new industries, enhance regional power security and promote responsible environmental management.

He emphasized that sustainable energy development should create lasting economic opportunities while preserving ecosystems and improving the livelihoods of surrounding communities.

The Ministry of Energy also reaffirmed its commitment to supporting renewable energy investments through enabling policies and strategic partnerships.

In remarks delivered on behalf of Energy Principal Secretary Alex Wachira by Engineer Isaac Kiva, the government said Kenya's energy sector has evolved into a platform capable of driving industrial transformation by supplying reliable, affordable and sustainable electricity to businesses and manufacturers.

He observed that the country's clean energy investments are increasingly becoming catalysts for industrial growth, employment creation and investor confidence, adding that collaboration between government agencies, private investors and development partners remains critical in accelerating the country's energy transition.

The Sustainability Report highlights significant environmental achievements recorded during the 2024/25 financial year.

Renewable sources contributed 94.4 percent of KenGen's total electricity dispatch, reinforcing Kenya's position among Africa's leading producers of clean energy.

The company also generated 6.9 million carbon credits, while maintaining one of the continent's lowest carbon emission intensities at 0.06089 tonnes of carbon dioxide equivalent per megawatt-hour, underscoring its contribution to global climate action.

Beyond energy generation, the report outlines several environmental conservation initiatives undertaken during the reporting period.

KenGen produced 887,220 tree seedlings and rehabilitated 850 hectares of degraded landscapes as part of its ecosystem restoration programme aimed at improving biodiversity and enhancing climate resilience.

The report further reveals KenGen's continued support for local enterprise development, with 69 percent of procurement opportunities—worth approximately Sh10.01 billion—awarded to Kenyan suppliers, reinforcing the company's commitment to inclusive economic growth and local value creation.

Prepared in line with the Global Reporting Initiative (GRI) Standards, the United Nations Global Compact principles and the Nairobi Securities Exchange ESG Disclosure Guidelines, the report establishes a comprehensive framework for annual sustainability reporting.

By combining ambitious renewable energy expansion with measurable environmental and social impact, KenGen is positioning itself not only as Kenya's largest electricity producer but also as a leading driver of sustainable development, climate resilience and the country's transition towards a greener, more competitive economy.

READ MORE NEWS HERE