By Benson Senelwa and Dr. Rose Ngugi
Introduction
Kenya is positioning itself as a possible continental leader in green hydrogen production and export by capitalizing on abundant renewable energy resources such as wind, solar, and geothermal. The guiding policy instruments, including the Kenya Vision 2030, which envisions a globally competitive, middle-income nation, and the Long-Term Low Emission Development Strategy (LT-LEDS) 2022-2050, a blueprint for steering Kenya down a low-carbon development path, firmly ground this pursuit. As the government, industry stakeholders, and development partners embrace the green hydrogen opportunities, the question arises: how will green hydrogen fit into the current energy mix? How does this cutting-edge technology align with Kenya’s socio-economic and environmental goals, as outlined in the Vision 2030 and LT-LEDS? What does this imply for the future of energy security, regional integration, and global competitiveness?
Aligning Green Hydrogen with Domestic and Regional Policy Framework
Kenya’s government is actively and ambitiously investigating breakthrough technologies in several energy fields, such as the green hydrogen industry, to meet the country’s expanding energy demands and facilitate the transition to renewable energy systems. However, unlike many other energy sources, hydrogen combustion yields water rather than carbon dioxide. This puts Kenya on track to achieve 100 per cent renewable energy. Historically, biomass (wood fuel, charcoal, and agricultural waste) has dominated Kenya’s energy mix, accounting for an average of 68 per cent of national energy supply by source, followed by hydro (9%), imported oil (22%), and others (1%). The biomass serves the basic cooking and heating energy requirements of rural communities, urban poor, and informal settlements throughout the country. The Kenya Vision 2030, which intends to develop the country into a newly industrializing, middle-income economy, identifies reliable, sustainable, and affordable energy as a critical enabler of long-term industrial progress. Electrolysis with renewable energy produces green hydrogen, perfectly suited for this purpose. It provides not just new avenues for industrial diversification but also a long-term fuel source for transportation, manufacturing, and possibly export. This is compatible with the Vision 2030, which emphasizes clean and renewable energy as critical for boosting industries, reducing dependency on imported fossil fuels, and increasing Kenya’s trade competitiveness.
Kenya’s commitment to climate resilience is evident through the creation of the LT-LEDS, which guides the country’s renewable energy development through 2050. It lays out a strategy for significant emission reductions in important industries such as energy, agriculture, and transportation while also ensuring that socio-economic growth remains on track. Green hydrogen fits well under this policy framework. Kenya may decarbonize its electrical, transportation, and industrial sectors in compliance with the LT-LEDS targets by producing hydrogen from solar, wind, and geothermal sources. Furthermore, the LT-LEDS encourages innovation and technical adoption, positioning green hydrogen research, development, and deployment as a key priority for investment and capacity expansion.
Kenya recently launched a deliberate effort to increase access to the power grid, increasing it from 32 per cent in 2013 to 75 per cent by 2022. By 2023, renewable energy sources such as hydropower, geothermal, biomass, wind, and solar will account for 70 per cent of Kenya’s installed power capacity. Kenya has made considerable progress in renewable energy, with almost 90 per cent of its electricity coming from green sources such as hydropower, geothermal, wind, and solar. Using these resources to generate green hydrogen is the next logical step. Kenya can produce green hydrogen on a large scale by constructing electrolyzers near geothermal sources in Olkaria and wind farms in Lake Turkana, converting the country’s renewable surplus into a transportable, highvalue commodity. This approach would supplement the LT-LEDS guidelines by expanding energy exports and enhancing regional energy security.
The incorporation of green hydrogen into Kenya’s energy mix has the potential to promote the growth of upstream and downstream sectors, resulting in job creation, technological transfer, and increased local entrepreneurship. As green hydrogen gains traction, industries such as fertilizer production, steelmaking, and sophisticated manufacturing may profit from a clean, dependable feedstock, promoting economic diversity and industrial depth. The government’s emphasis on public-private partnerships, as stated in numerous policy documents, will be critical to attracting international investment while also ensuring that Kenya’s indigenous private sector thrives in this new market.
Kenya’s green hydrogen vision aligns with the African Union’s Agenda 2063, which focuses on inclusive growth, sustainable development, and integration. With its strategic location in East Africa, Kenya has the potential to become a green hydrogen centre, supplying clean fuel to neighbouring countries and beyond. This is consistent with not only the Vision 2030’s trade aims but also regional energy frameworks such as the East African Community’s energy masterplan. Kenya’s role as a hub for green hydrogen production and innovation has the potential to improve regional energy security, lower carbon footprints, and deepen diplomatic ties based on common low-carbon development objectives.
Policy Coherence and Implementation Challenges
While the policy environment is in place, it is essential to establish consistency and successful execution across all government departments and stakeholders. The Ministry of Energy, in collaboration with entities such as the Kenya Electricity Generating Company (KenGen) and the Kenya Power and Lighting Company (KPLC), must develop methods to streamline permits, incentives, and capacity building programmes. Kenya’s continuing energy sector changes, such as those outlined in the Energy Act 2019, establish a framework for regulatory clarity and investor trust. Continuous communication with civic society, local communities, and research institutions is also required. Institutions such as the Kenya Climate Innovation Centre (KCIC) and local universities will play vital roles in research, talent development, and technology transfer, ensuring that green hydrogen development benefits all stakeholders.
The development of green hydrogen will necessitate significant capital investment. As such, collaborations with international financial institutions, climate funds, and bilateral donors, as envisioned in the LT-LEDS, provide the necessary funding. Green bonds, blended financing arrangements, and results-based climate finance will all play important roles in cutting capital costs. The conformity of the Government of Kenya to global frameworks, such as the Paris Agreement and the Sustainable Development Goals, makes it an appealing destination for climate-conscious investors looking to finance innovative green hydrogen initiatives.
Charting a Path Forward
For Kenya to exploit the potential for green hydrogen, it requires a deliberate approach. This includes, at a global level, implementing clear regulations, developing partnerships, and adhering to international standards. At the domestic level, refinement of policy framework, purposive stakeholder collaboration, and strong implementation frameworks are required. Furthermore, within the framework of the Vision 2030 and LT-LEDS, we must scale up pilot projects, invest in research and innovation, develop local knowledge, and constantly evaluate progress to ensure that green hydrogen fulfills its promise of driving a new era of sustainable, inclusive, and resilient development.
