A Review of Policy and Regulatory Environment

for Energy Crops in Kenya

Table of Contents

TABLE OF CONTENTS

 TOC \o "1-3" \h \z \u EXECUTIVE SUMMARY.. PAGEREF _Toc225877912 \h 6

BACKGROUND.. PAGEREF _Toc225877915 \h 8

INTRODUCTION.. PAGEREF _Toc225877916 \h 9

1.0       Structure of this Policy Review Document PAGEREF _Toc225877917 \h 9

2.0       Role of bioenergy in national development PAGEREF _Toc225877918 \h 9

3.0       The place of bioenergy in Integrated Energy Planning. PAGEREF _Toc225877919 \h 10

4.0       Energy Transition and Climate Change. PAGEREF _Toc225877920 \h 10

5.0       Energy Efficiency and Conservation. PAGEREF _Toc225877921 \h 11

6.0       Carbon Market and Carbon Finance. PAGEREF _Toc225877922 \h 11

7.0       Bioenergy pricing and financing. PAGEREF _Toc225877923 \h 11

7.1 Energy Financing. PAGEREF _Toc225877924 \h 11

7.2 Energy Pricing. PAGEREF _Toc225877925 \h 11

SECTION 1 – SECTOR ANALYSIS. PAGEREF _Toc225877926 \h 13

1.0 Background, Context and Rationale. PAGEREF _Toc225877927 \h 13

1.1       Overview of literature review and desk research. PAGEREF _Toc225877928 \h 13

1.2       Stakeholder mapping. PAGEREF _Toc225877929 \h 13

1.3       Agronomic feasibility assessments of energy crops. PAGEREF _Toc225877930 \h 15

1.4       Status of the bioenergy sector PAGEREF _Toc225877931 \h 16

1.5       Clean cooking sector plans and initiatives. PAGEREF _Toc225877932 \h 17

1.6       Transport sector plans and initiatives. PAGEREF _Toc225877933 \h 17

1.7       Industrial sector plans and initiatives. PAGEREF _Toc225877934 \h 18

1.8       Cogeneration, Gasification and Waste to Energy. PAGEREF _Toc225877935 \h 18

1.9       Demandside Analysis. PAGEREF _Toc225877936 \h 18

1.10     Supplyside Analysis. PAGEREF _Toc225877937 \h 19

1.11     Safeguards Analysis. PAGEREF _Toc225877938 \h 20

Bioenergy Land, Diversity and Environment PAGEREF _Toc225877939 \h 20

Gender Equality, Disability, and Social Inclusion. PAGEREF _Toc225877940 \h 20

Occupational Health and Safety. PAGEREF _Toc225877941 \h 20

1.12 Sector development Analysis. PAGEREF _Toc225877942 \h 21

Research, Development and Innovation: PAGEREF _Toc225877943 \h 21

Human Resource Development & Retention. PAGEREF _Toc225877944 \h 21

Technology and digitalisation. PAGEREF _Toc225877945 \h 21

1.13 Bioenergy policy implementation frameworks. PAGEREF _Toc225877946 \h 22

1.14 Enterprise profiling. PAGEREF _Toc225877947 \h 23

1.15 Investment, funding and financing policies. PAGEREF _Toc225877948 \h 23

SECTION 2 – POLICY ANALYSIS AND SYNTHESIS. PAGEREF _Toc225877949 \h 24

2.0 Justification and rationale for policy review.. PAGEREF _Toc225877950 \h 24

2.1 Scope of the policy analysis. PAGEREF _Toc225877951 \h 24

2.2 Overview of bioenergy elements of the National Energy Policy 2025 – 2034 (Draft) PAGEREF _Toc225877952 \h 25

2.3 Review of Kenya's Bioenergy Strategy. PAGEREF _Toc225877953 \h 25

2.4 Agency, nexus and county bioenergy policy framework. PAGEREF _Toc225877954 \h 26

2.5 Review of subsector plans. PAGEREF _Toc225877955 \h 26

2.5.1 Bioethanol masterplan. PAGEREF _Toc225877956 \h 26

2.5.2 Clean cooking transition strategy. PAGEREF _Toc225877957 \h 27

2.5 National and county bioenergy policy diagnostics. PAGEREF _Toc225877958 \h 28

2.6.1 Policy Framework. PAGEREF _Toc225877959 \h 30

2.6.2. Institutional Framework. PAGEREF _Toc225877960 \h 31

2.6.3. Implementation and Operation. PAGEREF _Toc225877961 \h 31

SECTION 3 – POLICY RECOMMENDATIONS. PAGEREF _Toc225877962 \h 32

3.1 Policy and Institutional Strengthening. PAGEREF _Toc225877963 \h 32

3.1.1 Strengthening existing policy frameworks. PAGEREF _Toc225877964 \h 32

3.1.2 Strengthening Regulatory Frameworks. PAGEREF _Toc225877965 \h 32

3.1.3 Strengthening Institutions. PAGEREF _Toc225877966 \h 32

3.1.4 Research and Development PAGEREF _Toc225877967 \h 33

3.2 Implementation Matrix. PAGEREF _Toc225877968 \h 33

4.0 County Policy briefs. PAGEREF _Toc225877969 \h 36

4.1 Kilifi County. PAGEREF _Toc225877970 \h 36

4.2 Kajiado County. PAGEREF _Toc225877971 \h 42

4.3 Kisumu County. PAGEREF _Toc225877972 \h 44

4.4 Nakuru County. PAGEREF _Toc225877973 \h 46

4.5 Nairobi County. PAGEREF _Toc225877974 \h 49

Context PAGEREF _Toc225877975 \h 49

County Policies. PAGEREF _Toc225877976 \h 50

5.0 References. PAGEREF _Toc225877978 \h 51

Executive Summary

Context: Development of energy crops for bioethanol that is utilized in cooking fuel and blending imported fossil fuels has significant potential to reduce Kenya’s fuel import bill, generation of incomes for farmers in Arid and Semi-Arid (ASALs) of Kenya and creation of jobs for the growing population of youth in Kenya. Between 2021-2025, Kenya’s demand for bioethanol reached 40 million liters of which 32.7 million liters were imported at a cost of Ksh 3 billion, while the balance of about 5 to 6.5 million liters was produced locally.  There is a significant challenge of local supply of bioethanol in Kenya, where the production potential for technical alcohol, which is typically used in bioethanol production, is estimated to be only 5.5 - 6.5 million liters per year, despite country's total installed processing capacity being 83 million liters annually. In the next 10 years (2026 – 2036), it is projected that the demand for bioethanol will increase to about 200 million liters annually. Despite the high potential of local production and increasing demand, the adoption of bioethanol in Kenya remains low due to inadequate regulatory framework and limited local production.

Practical Action and its partners are working to stimulate market demand for energy crops, improve technical and business capacities of producers and manufacturers, and create linkages between value chain actors to enable growth of the sector. The project also supports the review of policies and regulations governing energy crops to ensure a conducive environment for private sector investment and sustainable production.

Integral Media was commissioned by Practical Action to carry out a review of existing regulatory framework at national and county level, identify existing gaps and actionable recommendations to support sustainable energy crop cultivation and commercialization.

Objective and tasks of the Assignment: The objective of the assignment was to conduct a review of existing Policy and Regulatory framework with an aim of promoting growth and sustainability of the energy crops sector. The tasks that were carried out included: Conduct a comprehensive review of existing national and county policies, regulations, standards, and guidelines governing energy crop cultivation, bioethanol value chains, and related areas;  Identify gaps, inconsistencies, barriers, or opportunities within the policy framework; Provide practical, actionable recommendations for improving or harmonizing policies to support sustainable energy crop cultivation and commercialization; Promote the integration or alignment of bioethanol cropping into County Energy Plans (CEPs) of selected counties; Recommendations on ways to strengthen collaboration between the Ministry of Agriculture, Ministry of Energy, KALRO, KIRDI, KAM, and county governments in alignment with the Bioenergy Strategy (2020–2027).

Methodology: Various national and county-level policies, regulations, standards, and guidelines relevant to energy crops, bioethanol value chains, and clean cooking solutions were collated and reviewed. These included government gazettes, ministry publications, county energy plans, KEPSA/KEREA/CCAK standards. The alignment of Bioenergy Strategy (2020–2027), county-level agricultural plans and practical constraints observed in the field was assessed.

The validation meetings were held with the counties respective county governments of Kajiado, Kilifi, Kisumu, Nakuru, and Nairobi. During the validation meetings, participants were taken through a powerpoint presentation of findings on the status, gaps and recommendations found during the policy review.

Table 1.0: Validation Meetings held with the counties

Policy Gaps identified and recommendations: The following gaps were identified through this policy review:

·         Policy Framework:Limited implementation of existing policies, Low prioritization of biomass for bioenergy, Lack of land-use planning, Limited Incentives in the bioenergy value-chain, Delay in development of key policy documents at the county level.

·         Institutional Framework:Overlap of mandates for energy and agriculture sectoirs and, the two sectors were working in silos, Limited County-Level Capacity, Regulatory Voids in Supply Chain, Research to Policy Gap.

·         Implementation and Operation:Weak Enforcement of available regulations, lack of reliable, up-to-date for planning and monitoring progress and a limited critical mass of agriculture extension officers and those available lack specialized training on integrating energy crops into existing farming systems.

The following recomendations are made:

●       Policy frameworks:Energy crops and other biomass that serve as sources of bioenergy need to be prioritized, and budgeted for to increase local production. Cassava, sugar, sorghum and sweet sorghum should be classified as industrial crops under the Agriculture and Food Authority (AFA) and the Ministry of Agriculture to prioritize their research, development, cultivation, processing, marketing and trade.  Locally Produced Bioethanol should be zero-rated, and import duties removed on biofuels to make them competitive. Land Use planning and Sustainability Criteria should be defined and implemented to reduce competiton with food security. Specific, long-term policies that define the role of bioethanol in the energy mix, reducing the 25% import tariffs that currently hinder market growth are required.

●       Strengthening Regulatory Frameworks: Safety and Quality Standards for seeds and cooking stoves and fuel are required to increase consumer confidence. Also the licensing process for producers and distributors should be simplified and specific regulations for carbon financing within the cooking sector developed. The use of kerosene for domestic cooking needs to be phased out to create market space for cleaner, locally produced biofuels.

●       Strengthening Institutions:Collaboration between the Ministries of Energy, Agriculture, Environment, and Health needs to be strengthened through establishment of a interdisplinary technical working group, which should evolve into a fully fledged Semi-Autonomous Government Agency (SAGA), the Kenya Bioenergy Development Authority. Farmer Cooperatives and outgrower Schemes that allow inclusion of smallholder farmers in the supply chain through cooperatives to manage the economies of scale needed for profitable ethanol production. Public-private partnerships (PPPs) need to be developed for feedstock processing and distribution, particularly at the community level.

●       Research and Development: Investment in research for high-yielding, non-food feedstocks is required. Further, fccurate data and a central repository to track biofuel production, consumption, and the efficiency of the supply chain is required for future policy decisions.

BACKGROUND

Enhancement of Local Manufacturing and Energy Crops Cultivation for Clean Cooking (ELMECC) Project

Funded by UK PACT and in collaboration with Kenya's Ministry of Energy, ELMECC Project is implemented by Practical Action and partners CCAK and Gamos East Africa.

The Policy and Digitisation Component is implemented by Integral Media Ltd under contract by Practical Action.

The aim of ELMECC is to bridge the energy gap by establishing sustainable fuel supply chains and promoting clean cooking technologies. Activities are focused in Nairobi, Kisumu, Nakuru, Kilifi, and Kajiado counties in Kenya and include developing and promoting sustainable cultivation of energy crops to ensure a reliable supply of fuel for clean cooking solutions; strengthening local production of clean cooking appliances to reduce reliance on inefficient, traditional fuels; and supporting local enterprises to build market linkages that improve the overall efficiency and profitability of the energy crop sector. The project promotes inclusivity by creating economic opportunities for women and youth within the clean energy supply chain to create jobs, and foster a sustainable, market-driven approach to clean energy in Kenya.

This document presents a review of the policy environment, with the aim of informing policy and regulation review in order to support the development of energy cropping as a foundation of sustainable biofuel supply in Kenya. The focus of this policy review is national bioenergy, agriculture, climate, clean cooking, and industrial policies.

INTRODUCTION

1.0  Structure of this Policy Review Document

This policy review document starts with an Introduction that covers the role of bioenergy in national development, the importance of bioenergy in Kenya’s integrated energy planning and why energy transition is important for climate change mitigation. Further, the introduction covers the Government's efforts in energy efficiency and conservation, carbon markets and carbon finance, bioenergy pricing and finance and bioenergy planning and devolution. Section 1 covers the sector analysis that includes background and rationale, literature review and desk study, stakeholder mapping and agronomic feasibility assessments. Section 1 of the report further covers   Situation Analysis on the Status of the bioenergy sector that includes Clean cooking sector plans and initiatives, Transport sector plans and initiatives, Industrial sector plans and initiatives, and Cogeneration, Gasification and Waste to Energy. The section further covers Demand and supply Analysis, bioenergy land, diversity and environment as well as an analysis of safeguards that are either in place or need to be for the sector to achieve the intended goal. The safeguards include gender equality, disability, and social inclusion, and occupational health and safety. The section further presents an analysis of sector development, existing bioenergy policy implementation framework, enterprise profiling and investment, funding and financing policies. Section 2 of this report covers the policy analysis and synthesis that was carried that includes Justification and rationale for policy review, the scope of the policy analysis, and a review of the institutional arrangements, agency, nexus and county bioenergy policy frameworks for MoA, KALRO, KIRDI, KAM, KEPSA, KEREA, CCAK, and the Counties. Section 2 further covers a review of the bioenergy subsector plans, national and county bioenergy policy diagnostics as well as an analysis of policy gap, synthesis and harmonization. Section 3 of this report covers policy recommendations and policy briefs for the counties in focus namely Kilifi, Kajiado, Nakuru, Kisumu and Nairobi.

2.0  Role of bioenergy in national development

Bioenergy plays an important role in Kenya’s development, contributing 68% of the energy demand for the country’s needs. As a renewable energy source, it has high potential in contributing to Kenya’s energy security, the economy and serves as the main source of energy for cooking and heating, as well as an enabler for agriculture, health and business. The specific contributions of bioenergy in Kenya include:

●       Energy Security: Bioenergy helps to serve Kenya’s rural households where it provides about 90% of their energy needs.

●       Job Creation: The biomass value chain employs over 700,000 people directly, with significant potential for further employment in the production of modern fuels like briquettes and biogas.

●       Health: Transitioning from traditional, smoke-producing biomass to clean cooking alternatives (biogas/ethanol) reduces indoor air pollution, which is linked to 25% of the total disease burden in Kenya.

3.0  The place of bioenergy in Integrated Energy Planning

Bioenergy plays acts as a bridge between traditional non-sustainable utilization, and sustainable modern energy systems for Kenya’s integrated energy planning, with a focus on the following critical areas: 

●       Modernization of Traditional Energy: Bioenergy helps Kenya to modernize from dirty to clean energy by transitioning the country from use of traditional, polluting biomass that is hazardous to human health into the use of modern bioenergy.

●       Stabilization of the grid: Bioenergy helps to stabilize the grid by providing reliable, continuous power (baseload power).

●       Circular Economy and Waste Management: Bioenergy converts organic waste from agriculture, industry, and households into valuable energy, promoting a circular economy.

●       Attainment of decarbonization and net-zero goals: Bioenergy serves a vital role of reducing utilization of fossil fuels in Kenya, where the country will likely replace fossil fuels. This helps Kenya move towards the goal of meeting its commitments under the Paris Agreement.

4.0  Energy Transition and Climate Change

Globally, energy transition is taking place where energy is shifting from fossil-based sources to a zero-carbon system by 2050, aimed at mitigating climate change by reducing greenhouse gas emission and global warming. This transition primarily focuses on scaling of clean energy, improved energy efficiency, and accelerated electric mobility and has significant benefits for the environment, economy and the quality of life for the people, both current and future generations. The benefits associated with this transition include:

●       Cutting carbon emissions by 45% by 2030, and then to net zero by 2050, would keep global warming at no more than 1.5℃ below pre-industrial levels, limiting the impacts of climate change such as rising sea levels, floods, wildfires, drought and higher temperatures from becoming worse than those already taking place;

●       Cleaner air would reduce diseases caused by pollution, delivering important health benefits;

●       Conservation of natural resources, thereby protecting the biodiversity that supports life on the planet as we know it; Reduced exposure to fluctuations in fossil fuel prices from geopolitics results in a more reliably-priced energy supply, helping businesses and families plan for the future

Under the energy transition, Kenya is recognized as a global leader in renewable energy, with over 90% of its electricity generated from geothermal, hydro, wind, and solar sources. The country has ambitious targets of achieving 100% clean energy within the next 3 years, by 2030, and net-zero emissions within the next 20 years, by 2050. Kenya's path focuses on scaling up geothermal power, green industrialization, and electric mobility to combat climate change.

5.0  Energy Efficiency and Conservation

The country enacted the Kenya National Energy Efficiency and Conservation Strategy (2020) that prioritizes energy efficiency and conservation with the aim of improving energy security, reducing the expenditure of foreign currency reserves on energy imports, lessening the strain on the national grid during peak times and lowering the cost externalities associated with emissions. With this strategy, energy efficiency and conservation is one of the key pillars of sustainable development in Kenya.

6.0  Carbon Market and Carbon Finance

Kenya is a leader in carbon market and carbon finance in the African continent. In December 2020, the country submitted its updated Nationally Determined Contribution (NDC), seeking to undertake an ambitious effort to abate its GHG emissions by 32% by 2030 under the terms of the 2015 Paris accord, estimated to cost over USD 17 billion for mitigation actions by 2030. In 2022, Kenya’s public and private enterprises received 11 million voluntary carbon market credits in 2022, being only second only to the Democratic Republic of Congo in the continent, whose 24 million credits were achieved mainly through avoidance of emissions by dint of its vast forests. Some of the initiatives undertaken that allowed Kenya to make significant progress towards its GHG targets include wind and solar projects and introduction of EV buses in Nairobi, Kenya, with a goal to extend to other cities in the country.

7.0  Bioenergy pricing and financing

The financing and pricing mechanism of energy projects in the country is crucial in determining end user tariffs.

7.1 Energy Financing: Bioenergy sector requires sustainable financing to modernize the country’s energy infrastructure, adopt new technologies and enhance energy access to end consumers. Currently, the bioenergy sector is nascent and is financed through Government’s budgetary allocations, development partners and private sector initiatives. The National Green Fiscal Incentives Policy Frameworks promotes green energy investments. The investment requirements, however, surpasses the financial resources available for the sector. Measures taken by the Government to bring the gap include establishment of the Consolidated Energy Fund as provided under the Energy Act, promotion of public-private-partnerships and strengthening partnership with bilateral and multilateral development partners. Kenya also offers a number of incentives to the private investors in renewable energy, that would apply to bioenergy. These include Tax Holidays, Export Processing Zones (EPZs), Duty-Free Imports, Investment Allowances, Infrastructure Support, Export Promotion Schemes, Special Economic Zones (SEZs) and Customs and Trade Facilitation.

7.2 Energy Pricing: Kenya’s energy pricing for renewable energy is aimed at sustainability and attracting investments in the sector where tariffs are structured to generate adequate revenue for utilities while ensuring that the tariffs are competitive for the end user. The principles of Long Run Marginal Cost (LRMC) of supply are applied in pricing, where both bulk and retail tariffs are regulated and reviewed at least every three years. Bulk tariffs are negotiated between power producers and the off taker before approval by EPRA. Fuel costs and forex adjustments are pass-through costs in electricity pricing. Policies such as feed-in tariffs aim to promote investment in renewable projects.

1.    Bioenergy Planning and Devolution: The Sessional Paper No. 4 of 2004 provided for integration of energy planning with the national economic development plan, land use, social and environmental policies. Energy is an enabler for all sectors of the economy and decisions on energy issues impacts on other areas of the economy. Energy planning in Kenya is central to the sector's energy development. However, due to concentration on electricity planning, renewable energy, clean cooking, and bio-energy are not adequately incorporated into the energy sector planning. Integrated National Energy Planning (INEP), requires collaboration between the National and County Governments as well as other stakeholders. The Constitution providesfor the County Government to undertake energy planning. All the County Governments energy plans are to be incorporated into INEP. Access to complete and accurate energy data and information is essential in the development of INEP. An effective integrated energy planning requires adequate financial resources and modern energy planning and modelling tools.

SECTION 1 – SECTOR ANALYSIS

1.0 Background, Context and Rationale

Development of energy crops for bioethanol that is utilized in cooking fuel and blending imported fossil fuels has significant potential to reduce Kenya’s fuel import bill, generation of incomes for farmers in Arid and Semi-Arid (ASALs) of Kenya and creation of jobs for the growing population of youth in Kenya. Between 2021-2025, Kenya’s demand for bioethanol reached 40 million liters of which 32.7 million liters were imported at a cost of Ksh 3 billion, while the balance of about 5 to 6.5 million liters was produced locally.  There is a significant challenge of local supply of bioethanol in Kenya, where the production potential for technical alcohol, which is typically used in bioethanol production, is estimated to be only 5.5 - 6.5 million liters per year, despite the country's total installed processing capacity being 83 million liters annually. In the next 10 years (2026 – 2036), it is projected that the demand for bioethanol will increase to about 200 million liters annually. Despite the high potential of local production and increasing demand, the adoption of bioethanol in Kenya remains low due to inadequate regulatory framework and limited local production.

Practical Action and its partners are working to stimulate market demand for energy crops, improve technical and business capacities of producers and manufacturers, and create linkages between value chain actors to enable growth of the sector. The project also supports the review of policies and regulations governing energy crops to ensure a conducive environment for private sector investment and sustainable production.

Integral Media was commissioned by Practical Action to carry out a review of existing policies and regulatory framework at national and county level, identify existing gaps and actionable recommendations to support sustainable energy crop cultivation and commercialization.

1.1  Overview of literature review and desk research

Various national and county-level policies, regulations, standards, and guidelines relevant to energy crops, bioethanol value chains, and clean cooking solutions were collated and reviewed. These included government gazettes, ministry publications, county energy plans, KEPSA/KEREA/CCAK standards. The alignment of Bioenergy Strategy (2020–2027), county-level agricultural plans and practical constraints observed in the field was assessed.

1.2  Stakeholder mapping

The stakeholders involved in energy crops and bioenergy sector include government agencies, research institutions, private sector businesses and players and community level actors:

Government agencies: Government agencies are involved in setting policy, legal and regulatory standards at National level and, implementation of these policies at county level. The stakeholders include:

●       The Ministry of Energy and Petroleum is involved in the development policies and strategies, including the Kenya Bioenergy Strategy (2020-2027), and oversees the transition to clean sustainable energy.

●       Energy and Petroleum Regulatory Authority (EPRA) is responsible for regulation, licensing, and enforcing standards in the energy sector.

●       The Ministry of Agriculture and Livestock Development is involved in setting standards in the production of energy crops, particularly regarding land use for energy crops.

●       National Environment Management Authority (NEMA) is involved in implementation of environmental impact assessments (EIAs) for large-scale energy projects.

●       County Governments implement policies, laws and regulatory framework for energy crops by domesticating these policies and allocating budgets. Apart from sugarcane, other energy crops are produced in the low rainfall Arid and Semi-Arid Lands (ASALs) and therefore ASAL counties are expected to play an important role in energy crops production and processing into bioethanol.

Research Institutions: These institutions are involved in research, innovation and generation of new knowledge beneficial to the Government and community level actors. The institutions include:

●       Kenya Agricultural and Livestock Research Organization (KALRO): KALRO is key in conducting research, developing energy crop varieties, and promoting agricultural technologies.

●       Universities: Local universities train and produce the technically competent human resources required in the energy crops production and bioenergy sector, work with KALRO in development of new crop varieties, and test the viability of different biomass feedstocks, such as sorghum, cassava, and jatropha for bioenergy.

Private Sector, NGOs, and Development Partners: These partners are key to development of the bioenergy sector as they fund and invest in production, processing, distribution and utilization of energy crops and bioethanol. The partners include:

●       Independent Power Producers (IPPs) and Private Developers invest in bioenergy production, conversion technologies (biogas/biodiesel), and distribution.

●       Non-Governmental Organizations (NGOs) and Community-Based Organizations (CBOs) facilitate, support, and implement projects at the community level, particularly in promoting technical training and linking farmers to markets.

●       Development Partners provide funding and technical support for research and sustainable management projects.

Community level actors are involved in production of energy crops, land management at community level and utilization of bioenergy in cooking. These include:

●       Smallholder Farmers: Cultivate energy crops (e.g., sugarcane, sorghum, cassava) and are key to the feedstock supply chain.

●       Pastoralists are critical in management of rangelands in ASALs, as these rangelands are highly suitable in production of cassava, sorghum and sweet sorghum.

The following institutions are key in implementation of Bioenergy Strategy, 2020-2027, and Action Plan 2023

1.3  Agronomic feasibility assessments of energy crops

Cassava is produced as an orphan root crop in Kenya but the crop has significant potential to produce bioethanol. In 2023-2024, cassava production increased from 1.29 million tonnes (2023) to 1.21 million tonnes (2024) on ~76–84k hectares, with exports rising sharply year-on-year (from 3,042 MT to 14,564 MT), signalling improving cross-border linkage potential, but the income from the crop showed overall value declined due to lower farm-gate price dynamics.

Cassava production and yields in Kenya (AFA yearbook, 2023-2024)

Sorghum, another orphan crop in Kenya, also has significant potential for ethanol production.  In 2023-2024, the production of the crop, however, declined from 245,396 tonnes (2023) to 241,309 tonnes (2024), with a significant harvest-area contraction, suggesting a supply volatility risk in industrial offtake markets (brewing/feed), unless aggregation and contract farming stabilize volumes.

Sorghum production and yield in Kenya (AFA yearbook 2023-2024)

Sugarcane is produced primarily in Kwale, and Western Kenya counties and is structurally linked to ethanol via molasses; the national ECF masterplan states that cooking ethanol is “nascent” at ~1.2 million litres/year produced by only two active firms at the time (ACFC and Kibos Sugar & Allied) and constrained by molasses scarcity.  The same masterplan provides conversion ratios enabling quantified feedstock planning (e.g., 312.5 L ethanol/ton molasses, and 29 tons sugarcane/ton molasses).

1.4  Status of the bioenergy sector

Bioenergy plays an important role in Kenya’s development, contributing 68% of the energy demand for the country’s needs. It is the main source of energy in rural areas, contributing as much as 90% of energy needs for rural households. Traditional biomass dominates as the main source of bioenergy where over 80% of households depend on firewood and charcoal for cooking, which has an adverse impact of depleting tree cover and forests, leading to desertification in the country. Efforts to modernize the bioenergy sector, toward use of briquettes (produced from agricultural waste), biogas, and bioethanol for cooking and industrial use, aim at reversing the negative trend, and transition towards clean energy will lead to a more sustainable sector. The modernization effort is creating a positive trend towards production, distribution and use of clean energy, with an estimated 8000 biogas plans that utilize plants and livestock waste materials to produce biogas for domestic and industrial use. The Government has made significant steps to modernize the bioenergy sector, formalize the bioenergy value chain and promote sustainability by enacting the Bioenergy Strategy (2020-2027). In February 2026, Parliament proposed a 20% biofuel blend (B20) in petrol to reduce imports, an increase from the initial 10% blending levels, a move that is likely to create more demand for bioenergy. The main challenges affecting bioenergy sector are:

●       Deforestation and Degradation: High reliance on woody biomass (woodfuel/charcoal) causes significant environmental damage.

●       Health Concerns: Indoor air pollution from traditional cooking fuels is linked to severe respiratory diseases, contributing to 25% of the national disease burden.

●       Limited standardization and regulation: The bioenergy market operates with little standardization, making it difficult to regulate or collect comprehensive data.

●       High Costs of setting up bioenergy plants: The installation costs of modern, clean cooking technologies (e.g., biogas digesters) are prohibitive for low-income households.

1.5  Clean cooking sector plans and initiatives

The purpose of Kenya’s clean cooking sector plans and initiatives is to improve public health, mitigate against climate change by reducing deforestation and greenhouse gas emissions, and foster economic empowerment for rural households and, particularly women. The existing sector plans and initiatives include:

●       Kenya National Cooking Transition Strategy (KNCTS) 2024-2028: The roadmap aims to transition 50% of the population to LPG, 30% to bioethanol, 10% to electricity, and 7% to sustainable biomass by 2028, focusing on affordability and local manufacturing.

●       Kenya National Electric Cooking Strategy (KNeCS): This initiative focuses on integrating electric cooking into the national energy strategy, aiming for a 10% adoption rate by 2028.

●       Carbon Finance and Incentives: Leveraging carbon credit revenue to subsidize stove prices and promoting tax incentives to ensure affordability, including zero-rating LPG and other clean fuels.

●       Local Manufacturing and Distribution: Efforts to strengthen the supply chain for locally produced, efficient stoves, reducing dependency on imported materials.

●       Kenya National Action Plan (KENAP): This initiative by the Clean Cooking Alliance, aimed at mapping producers and bridging the "last-mile" distribution gap.

●       Development partners and NGO-led initiatives:

●       Accelerating Clean Cooking Action in Kenya (ACCA) Project: A UNDP project (2024-2027) working to accelerate clean cooking in areas like Nairobi and Kajiado, focusing on transitioning public institutions to LPG and empowering women/youth.

●       The ELMECC (Enhancing Local Manufacturing and Energy Crops Cultivation) project, implemented by Practical Action in Kenya and partners, whose aim is to enhance local production of eco-friendly cooking stoves and promote sustainable energy crop farming to improve health and wealth for Kenyan women.

1.6  Transport sector plans and initiatives

The National Transport Master Plan (NATMAP) is a 50-year framework that aims to position Kenya as a regional transport hub by improving efficiency, lowering transport costs, and strengthening institutional capacity. Through this framework, the Government of Kenya prioritizes development of infrastructure, enhancing mobility in urban areas, and transitioning to cleaner energy. The draft National e-Mobility Policy targets a 5% EV market share by 2025 to curb emissions, leveraging a national grid with nearly 90% renewable energy.

1.7  Industrial sector plans and initiatives

Kenya's industrial sector is actively transitioning toward modern bioenergy, including industrial co-generation and bioethanol, to reduce reliance on fossil fuels, in compliance with the Bioenergy Strategy (2020-2027) and the National Energy Policy 2025–2034. The targets for this transition are to achieve 100% access to modern, sustainable bioenergy for industrial use by 2028, increase biomass/cogeneration capacity to 295MW as part of the 100% clean grid ambition by 2030 and reduce dependence on traditional biomass from 68% (in 2019) down to 15% by 2040. Some of the initiatives leading to the set targets include:

●       Industrial Co-generation and Bioethanol Scaling using industrial waste

●       Adoption of Briquette for fuel generation aimed at enhancing transition from traditional wood fuel to commercialized charcoal dust and sawdust briquettes for industrial boilers, enhancing efficiency.

●       Exploration of green hydrogen and biofuels to serve industries aimed at reducing the reliance on imported oil.

1.8  Cogeneration, Gasification and Waste to Energy

Technologies that allow cogeneration, gasification and conversion of waste to energy would significantly contribute to Kenya’s growing electricity demand and support universal access to clean energy by 2028. The bagasse-based cogeneration in the sugar industry has the potential to contribute up to 10% of Kenya's national electrical energy demand. The annual bagasse production can generate an estimated 550 GWh of electricity annually, saving about $90 million in foreign exchange by displacing fossil fuels. Upgrading old technology in sugar production has significant potential to support cogeneration, producing electricity in excess of that required in the sugar factories and therefore allow excess to be sold. Gasification on the other hand converts biomass and municipal solid waste (MSW) into gas for power generation, thus transforming waste to energy.

1.9  Demandside Analysis

Bioenergy, in particular firewood and charcoal, is the main energy source for over 80% of the population, with high demand for cooking and heating in rural households and informal urban markets, where the residential sector is the largest consumer, expected to constitute 80% of total final energy demand by 2040. The demand for the traditional biomass is expected to rise due population growth. The high reliance on inefficient, traditional biomass is creating massive pressure on forest resources and tree cover, necessitating a shift towards modern bioenergy sources like densified briquettes, biogas, and improved stoves, particularly through agricultural waste. With effort towards clean energy sources, the percentage share of bioenergy in the total energy mix is projected to decrease to from about 80% to 15% by 2040 as the country moves towards renewable energy.

1.10          Supplyside Analysis

The supply of bioenergy is heavily dependent on traditional biomass, in particular firewood and charcoal, but it is currently in transition towards modern, sustainable bioenergy sources, including agricultural residues and dedicated energy crops, a change driven by recent Government policies and private sector initiatives. The main sources of bioenergy include

●       Wood fuel and Charcoal: Up to 80% of Kenyan households rely on wood fuel for cooking and heating. Over 75% of bioenergy is generated from this source, putting significant pressure on tree cover and forests.

●       Agricultural Residues and wastes: These include sugarcane residue, coffee husks, and macadamia shells. Such wastes are utilized for industrial heating, particularly in the tea sector.

●       Briquettes and Pellets: Briquettes and pellets from waste are modern sources of bioenergy that are likely to lower greenhouse gas (GHG).

●       Biogas: Biogas from manure provide an alternative source of bioenergy for households that own cattle. As of 2023–2024, approximately 22,000 biogas digesters were installed in Kenya

●       Bioethanol: Bioethanol is produced from energy crops such as sugarcane, cassava, sorghum and sweet sorghum.

The drivers of expanding supply of bioenergy include Bioenergy Strategy (2020–2027) whose aim is to formalize the sector, promote modern conversion technologies, and improve sustainability, sufficient supply of farm residues that could be used in energy generation, and availability of land for cultivation of energy crops, particularly in ASALs.

1.11          Safeguards Analysis

Bioenergy Land, Diversity and Environment

Bioenergy development presents both opportunities and risks for land use, biodiversity, and the environment. By eliminating traditional use of hazardous energy sources and transitioning society to clean energy, it serves an important role of mitigating climate change by restoring degraded, marginal, or abandoned lands. However, there is a risk of competition for land between bioenergy crops and food production, which can threaten food security and cause land-use change. Large scale industrial bioenergy development also poses serious risks of causing biodiversity loss, through monocropping, and resource-based conflict, where land ownership and benefits accruing from the land are not well managed. Environmental risks of creating water scarcity, due to large scale irrigation schemes for energy crops depleting available water sources. Further, intensive cultivation of energy crops and heavy use of fertilizers can lead to acidification of the soils, nutrient depletion and soil erosion. Sustainable bioenergy development requires strategic and holistic land-use planning to balance energy demands with biodiversity conservation and food security. A people-centered approach where the local community actively participates and utilization of marginal land in the ASALs for energy crops, rather than expanding into high-biodiversity areas, is crucial to minimize negative impacts..

Gender Equality, Disability, and Social Inclusion

Modern bioenergy solutions, e.g., cleaner cookstoves, biogas, significantly reduce the time women spend collecting firewood, allowing them more time for education or income-generating activities. However, a holistic approach where Gender Equality, Disability, and Social Inclusion (GEDSI/GESI) is fully integrated in the bioenergy sector, so that the needs of marginalized groups—women, youth, PWDs, ethnic minorities, and low-income households—in energy policymaking and project implementation are prioritized and addressed, is critical to ensuring that the transition to clean energy is inclusive, equitable, sustainable, and leaves no one behind. Application of the Ministry of Energy's Gender Policy 2019 and GEDSI principles is necessary in the development of the bioenergy sector.

Occupational Health and Safety

Development of bioenergy requires application of the Occupational Safety and Health Act, 2007. Managing risks associated with bioenergy requires a whole-of-value chain approach as risks are in the entire supply chain, including production, harvesting, transport, and processing biomass into biofuel. Hazards may be biological such as pores and pathogens that cause respiratory infections, physical and mechanical hazards such as dangerous machinery, falling objects, and noise exposure, chemical and fire hazards, or safety hazards such as heavy manual labor, fall from heights. Implementing a rigorous risk assessment, using protective equipment, and adhering to strict industrial safety standards is required.

1.12 Sector development Analysis

Research, Development and Innovation: The Kenya Bioenergy Strategy 2020–2027 focuses on transitioning bioenergy from a traditional, unregulated sector to a modern, sustainable industry. Key research, development, and innovation efforts within this period are aimed at enhancing sustainable biomass production, improving conversion efficiency, and fostering innovation through multi-stakeholder platforms. The areas that require research, development and innovation are:

●       Sustainable Feedstock Development: Research and development need to be directed at identifying and testing viable, non-food biomass feedstock for biodiesel and biofuel production, including research conducted by local universities.

●       Modernizing Bioenergy Technology: Focus on advancing technologies for solid biomass, gaseous biofuels (such as biogas), and liquid biofuels to shift away from inefficient traditional uses.

●       Clean Cooking Innovation: This innovation should focus on affordable and efficient stoves and fuels with an aim of accelerating the transition to clean cooking technologies and fuels by 2028.

●       Waste-to-Energy Conversion: Research into developing innovative methods for converting agricultural, industrial, and municipal organic waste into usable energy.

●       Innovation Platforms: The strategy relies on sub-sector stakeholders, including academia and the private sector, convening around innovation platforms to determine specific targets and innovative solutions for the medium term (2023–2027).

Human Resource Development & Retention

The Kenya Bioenergy Strategy (2020–2027) aims to formalize the bioenergy sector, emphasizing the need for skilled labor to support the modernization and regulation of the bioenergy sector to shift from inefficient biomass usage to sustainable energy pathways. The strategy foresees a critical role for Technical and Vocational Education and Training (TVET) institutions in transforming the bioenergy from informal to formal, sustainable, and productive sectors. Green industrial skills and preparing young people for jobs in clean energy technologies will accelerate transition at domestic household level as well as at industrial level.

Technology and digitalisation

Technology and digital innovation are expected to play an important role for Kenya to meet clean cooking targets by 2028. The Kenya Bioenergy Strategy (2020–2027) foresees clean cooking technologies that accelerate modern, efficient cookstoves and fuels to improve health and reduce environmental impacts, advanced bioenergy conversion such as anaerobic digestion (biogas) and gasification, and advancements in liquid biofuel production (e.g., bioethanol and biodiesel) and the establishment of sustainable aviation fuel chains. Further, digital innovation and data-driven innovations include establishment of Innovation Platforms for multi-stakeholder consultation to drive innovation, learning, and feedback in the sector, establishing a robust and reliable biomass energy database to track resource availability and consumption and provision of digitized, accessible information to investors on viable, high-potential bioenergy projects and feedstock availability. Smart Energy Management systems that help in Integration with wider national efforts to enhance the electrical grid for clean energy, should be established.

1.13 Bioenergy policy implementation frameworks

The following policies, strategies, development plans and regulations guide the implementation of bioenergy in Kenya:

●       Bioenergy Strategy 2020-2027: This policy aims to formalize, modernize, and regulate the sector to support sustainable energy access for all in Kenya. The policy provides a roadmap for developing sustainable bioenergy as a formal industry to replace traditional use of biomass. The policy prioritizes modern clean cooking solutions, sustainable charcoal production, and bioenergy investments. Implementation of this policy is managed through national and county governments, where coordination is provided by the Ministry of Energy.

●       National Energy Policy 2025–2034: Provides an updated policy framework aligning bioenergy with national economic growth, sustainable energy access, and climate commitments (e.g., net zero), ensuring environmental sustainability.

●       County Energy Plans (CEPs): Enabled by the Energy Act 2019, these plans are crucial for localizing bioenergy strategies, identifying resource potential, and managing local energy demand, often supported by partnerships (e.g., GCF/SETA).

●       Sessional Paper No. 5 of 2024 on the National Green Fiscal Incentives Policy Framework: The sessional paper sets a policy framework to transition Kenya toward a low-carbon, climate-resilient economy and provides a mix of fiscal incentives and disincentives to promote green investment and sustainable practices across sectors like agriculture, transport, and energy. Key policy tools that are set out in the policy include the use of carbon tax, rebates, subsidies, tax exemptions, ecological fiscal transfers, research grants, concessional loans, guarantees, interest rate subsidies, creation of a green bank. The policy includes VAT exemptions for products like sustainable briquettes and biogas.

●       Regulatory Standards: The following regulatory framework regulates the bioenergy sector.

○       Energy (Biofuels) Regulations, 2025: These regulations provide a comprehensive framework for production, storage, transportation, and blending of biofuels.

○       Biofuel Quality Standards (KEBS): Standards exist for 10% ethanol blends (E10) with petrol. In February 2026, parliament approved 20% ethanol blends and this will require new standards to be developed.

○       Charcoal Standards: KS 2912:2020 specifies standards for solid biofuels, including sustainable charcoal and carbonized briquettes.

○       Licensing and Licensing Requirements: EPRA requires Environmental Impact Assessment (EIA) licenses for production facilities and enforces safety inspections for storage and blending sites.

1.14 Enterprise profiling

Kenya has a nascent but growing industry that is focused on transitioning the country from traditional wood fuel to modern biomass, biogas, and biofuels. This nascent industry supports 68% of total primary energy consumption. Key enterprises include firms producing biogas, agricultural waste briquettes, and advanced cookstoves. A mix of small and medium enterprises (SMEs) dominates the industry, particularly in charcoal and fuelwood supply, and increasing private investments in biogas technology. An estimated 22,000 biogas installations have been recorded in this industry.

1.15 Investment, funding and financing policies

Investment, funding and financing of the bioenergy sector is regulated by existing policies listed in  Section 10, of this report and includes public-private partnerships, green fiscal incentives, and international funding for renewable energy projects. The Bioenergy Strategy (2020–2027) formalizes the bioenergy industry, providing a framework for investment in sustainable feedstock and modernizing bioenergy utilization. The Kenya Energy Transition & Investment Plan (ETIP) sets the roadmap for 2023-2050 to mobilize investments in clean cooking, green hydrogen, and bioethanol. Sessional Paper No. 5 of 2024 on the National Green Fiscal Incentives Policy Framework proposes tax incentives, subsidies, and regulatory instruments to drive private investment into low-carbon, climate-resilient projects. The Government has also established partial risk guarantees (PRG) to de-risk investments in renewable energy infrastructure. Financial and technical support for the bioenergy sector is expected from various sources including allocations from the Government, international development partners such as World Bank, and private sector investors such as Giraffe Bioenergy.

SECTION 2 – POLICY ANALYSIS AND SYNTHESIS

2.0 Justification and rationale for policy review

The annual cost of importing petroleum products, including fuels and lubricants, generally represents one of the largest components of the country's import bill.  In the period April 2023 – March 2026, Kenya has imported fuel worth approximately KSh 1.6 trillion through the Government-to-Government (G-to-G) deal started in April 2023. The cost of petroleum imports is likely to increase due to conflicts affecting countries in the gulf that export to Kenya. Kenya requires sustainable alternatives to fossil fuel imports. The National Energy Policy 2025–2034 emphasizing renewable energy sources to meet growing industrial and household demand. There is increasing demand for bioenergy, which currently constitutes 68% of total energy source. Sources of raw materials for bioenergy, however, face threats of Climate Change and environmental sustainability. A policy review on energy crops is necessitated by the need to balance bioenergy demand with food security, the need to build resilience to climate change and allow integration of agriculture and energy sectors.

2.1 Scope of the policy analysis

The scope of policy analysis in this report is limited to development of a sustainable, regulated, and economically viable bioenergy sector to reduce reliance on fossil fuels and enhance energy security in Kenya. The review includes regulatory frameworks, feedstock suitability, socio-economic impacts, and environmental sustainability, as well as the broader Kenya National Energy Policy (2025–2034) and the Bioenergy Strategy (2020-2027). Key components of the policy analysis include:

1. Regulatory and Legal Framework

●       National Energy Policy 2025 – 2034 (Draft): Focus on transforming Kenya's bioenergy sector from traditional biomass reliance to modern, sustainable, and regulated clean energy systems. The scope of this review also covers regulatory requirements for producing, transporting, and selling bioethanol including creating a favorable environment for large-scale production.

●       Kenya's Bioenergy Strategy: Focus on creating a supportive environment that includes E10 blending mandates and potential tax incentives to encourage investment.

●       Bioethanol masterplan: Focus on the development of a sustainable bioethanol industry.

●       The Kenya National Cooking Transition Strategy (KNCTS) (2024–2028): Focus on the universal access to clean cooking in Kenya by 2028.

●       Institutional Coordination: Defining the roles of the various institutions involved in regulating feedstock production.

2. Technical Feasibility and Feedstock Selection

●       Suitability Analysis: Evaluation of crops namely sugarcane, cassava, sorghum and sweet sorghum for bioethanol generation based on environmental suitability and yields.

●       Agronomic Potential: Assessment of cultivating energy crops in both high-potential and semi-arid areas.

●       Supply Chain Development: Strategies to ensure consistent feedstock supply from small-scale farmers and large plantations.

3. Socio-Economic and Agricultural Impact

●       Food vs. Fuel Security: Crucial analysis of land use changes, ensuring energy crop production does not jeopardize local food security.

●       Smallholder Integration: Developing frameworks to integrate small-scale farmers into the bioenergy supply chain to increase rural income.

●       Investment and Job Creation: Analyzing the potential for job creation in rural areas and the reduction of foreign currency exchange losses through reduced fuel imports.

4. Environmental and Sustainability Criteria

●       Carbon Footprint Assessment: Ensuring the lifecycle carbon emissions of produced biofuels are lower than fossil fuels.

●       Sustainability Certification: Development of standards to prevent deforestation and land degradation.

●       Climate Change Adaptation: Promoting drought-resistant crops (cassava, sorghum, sweet sorghum) in the ASALs of Kenya due to changing climatic conditions.

5. Institutional Support and Incentives

●       Financing Mechanisms: Policy reviews to enable funding for infrastructure, research, and development in the bioenergy sector.

●       Capacity Building: Strengthening the technical capacity of county governments to develop and monitor bioenergy projects.

2.2 Overview of bioenergy elements of the National Energy Policy 2025 – 2034 (Draft)

The National Energy Policy 2025–2034 focuses on transforming Kenya's bioenergy sector from traditional biomass reliance to modern, sustainable, and regulated clean energy systems. The key bioenergy elements contained in the policy are:

●       Clean Cooking & Health Focus: The policy targets 100% access to modern, clean cooking energy by 2030. It highlights the need to replace traditional, polluting solid biomass fuels with cleaner alternatives, such as biogas, modern bioethanol, and improved, sustainable biomass cookstoves to mitigate health, environmental, and ecological damage.

●       Modernization and Regulation of bioenergy sector: Recognizing the nascent state of modern bioenergy, the policy aims to formalize and regulate the sector. This includes moving away from unsustainable charcoal production toward certified biomass, biogas, and bioethanol production.

●       Biofuel Development: The policy encourages the adoption of bioethanol blending with gasoline for the transport sector. It also explores the viability of local biomass feedstock for biodiesel production to diversify the energy mix.

●       Integration with Agriculture & Waste: The policy supports tapping into agri-waste for energy production (biogas/solid fuel).

2.3 Review of Kenya's Bioenergy Strategy

Kenya's Bioenergy Strategy 2020–2027 aims to modernize, formalize, and regulate Kenya’s bioenergy sector, targeting a reduction in traditional biomass reliance from over 60% to 15% by 2040. It focuses on sustainable wood fuel, efficient cookstoves, biogas, and biofuels to achieve universal clean cooking access by 2028. The main actions foreseen in this policy are:

1. Mapping the country’s biomass resources to create a comprehensive inventory, ensuring sustainable sourcing, and reducing the ecological impact of traditional wood fuel
2. Accelerating the adoption of modern, clean cooking solutions (biogas, LPG, and improved cookstoves) to improve health and reduce greenhouse gas emissions.
3. Development of Bioenergy Value Chains: Encouraging the production of energy crops and the use of agricultural waste for briquette production to provide renewable fuel for homes and industry
4. Policy Harmonization: Resolving conflicting mandates between state agencies to create a unified framework for bioenergy development and institutionalizing the strategy within the Ministry of Energy.
5. Research and Capacity Building: Enhancing technical knowledge and research to improve bioenergy production efficiency and build a skilled workforce.
6. Fuel Blending: Supporting the introduction of bioethanol blending with gasoline for the transport sector to reduce reliance on imported fuel.

2.4 Agency, nexus and county bioenergy policy framework

The roles of the agencies involved in implementation of bioenergy policy frameworks include:

●       Ministry of Energy (MoE): Oversees overall strategy implementation, sets renewable energy priorities, and manages the Delivery and Coordination Mechanism.

●       Ministry of Agriculture (MoA): Manages agricultural feedstock for bioenergy production.

●       KALRO (Kenya Agricultural & Livestock Research Organization): Researches, develops, and promotes suitable biomass feedstocks (e.g., fast-growing trees, bio-crops).

●       KIRDI (Kenya Industrial Research & Development Institute): Promotes technology development for bioenergy production and conversion.

●       KAM (Kenya Association of Manufacturers): Promotes efficient industrial energy use and clean energy adoption in manufacturing.

●       KEPSA (Kenya Private Sector Alliance): Facilitates private sector investment and participation in the bioenergy value chain.

●       KEREA (Kenya Renewable Energy Association): Focuses on capacity building, awareness, and standards for renewable technologies.

●       CCAK (Clean Cooking Association of Kenya): Spearheads initiatives for clean cooking solutions, aiming to reduce dependence on unsustainable biomass.

●       Counties: Mandated under the Energy Act of 2019 to regulate and license charcoal and biomass value chains.

2.5 Review of subsector plans

2.5.1 Bioethanol masterplan

Kenya’s ethanol development is guided by Kenya's Ethanol Cooking Fuel (ECF) Master Plan that aims to establish a sustainable bioethanol industry that replaces traditional charcoal production and utilization. The objective of the Master plan supports development of a sustainable bioethanol industry by establishing a secure, affordable, and sustainable supply chain for bioethanol cooking fuel. Once the masterplan is fully implemented, the efforts will create about 370,000 jobs, save up to 54 million trees thus reducing deforestation and desertification, reduce GHG emissions, and improve health of households by reducing respiratory diseases caused by charcoal pollution, and support attainment of 13 out of 17 Sustainable Development Goals (SDGs) in the country. Kenya currently produces an estimated 11.3M liters of ethanol against a demand of 40 million liters, where the most of the ethanol is imported to bridge the deficit. In the next 10 years, the demand for bioethanol is expected to increase to 200 million liters. The masterplan targets to meet the 200 million liters through local production by 2035. To achieve this target the strategy supports actions that lead to development of various feedstocks, including sugarcane, cassava, sorghum and sweet sorghum, and the entire value chains.

Key Actions of the Bioethanol Master Plan in Kenya

2.5.2 Clean cooking transition strategy

The overall objective of The Kenya National Cooking Transition Strategy (KNCTS) (2024–2028) is universal access to clean cooking in Kenya by 2028. The strategy utilizes a mix of energy sources including 50% LPG, 30% bioethanol, 10% electric, and 10% biogas/sustainable biomass to achieve its intended objective and five action agendas namely 1) bridging supply gaps, 2) improving affordability, 3) promoting local manufacturing, 4) raising awareness, and 5) ensuring accountability. By 2026, there was mixed progress on five action agendas.

Progress made in the clean cooking transition strategy

2.5 National and county bioenergy policy diagnostics

The bioenergy sector in Kenya is currently guided by the Bioenergy Strategy (2020–2027) and the National Energy Policy 2025–2034, aiming for 100% access to modern bioenergy services by 2030 and clean cooking by 2028. Despite these frameworks the two guiding policy frameworks, there significant implementation gaps at both national and county levels. At the national level, the sector is still in early stages, requiring massive transformation to modernize and regulate "scattered and uncoordinated" interventions. There is a lack of competitive rates for renewable energy (e.g., Feed-in Tariffs) to attract private investment, and a shortage of comprehensive fiscal incentives like tax subsidies. A lack of up-to-date, exhaustive data hinders evidence-based policy and regulatory development. At the county level, the counties are mandated to develop County Energy Plans (CEPs) that are aligned with the Integrated National Energy Plan (INEP) by the Energy Act 2019. However, the process of developing the CEPs has been slow due to limited data and technical expertise and human resources, thereby restricting their ability to assess resource potential and evaluate project feasibility.

Analysis of Policy Interventions

Several institutions have been involved in the development of the bioenergy sector. These institutions have played a critical role in moving Kenya to clean energy. However, their level of coordination has been limited with each working independently of each other. There is limited coordination between the Ministries of Agriculture, Energy and Forestry and misaligned mandates for regulation of the bioenergy sector. There is also insufficient collaboration between the national government and counties, alongside inadequate decentralization of capacity at the local level.

 Roles and Achievements of stakeholders in the bioenergy Sector

Kenya has significant potential for liquid biofuel production (bioethanol and biodiesel). Key crops include sweet sorghum (highest potential), sugarcane (molasses), sorghum and cassava for bioethanol and Castor (highest potential), Jatropha, Croton megalocarpus, and sunflower for biodiesel. Dominant for bioethanol production. The sugar industry is transitioning towards using residues (bagasse) for electricity co-generation and molasses for ethanol, while cassava shows high potential in arid and semi-arid zones such as Kilifi and parts of Kisumu County. In Kilifi County, Giraffe Bioenergy has partnered with the County Government and Equity Bank to support cassava production for processing into bioethanol, with a target of producing 15 million liters of ethanol annually. However, a number of these crops such as sugarcane are primary food sources, leading to competition for arable land. Further, there are no established supply chains, conversion technologies, and reliable markets for most of these crops, apart from sugarcane.

 Analysis of Energy Crops in Bioethanol production

2.6 Policy gap analysis, harmonization and synthesis

The following gaps were identified through this policy review:

2.6.1 Policy Framework

●       Limited implementation of existing policies: Although Kenya has policies that support bioenergy sector, their level of implementation is at various stages.

●       Low prioritization of biomass for bioenergy: Apart from sugarcane, other energy crops (cassava, sorghum, sweet sorghum) are orphan crops considered for alleviating hunger, rather than industrial crops, despite their immense potential to reduce the import bill of fossil fuels. Despite its important role of supplying energy to up to 90% of energy in rural areas charcoal is also treated as a "traditional" or illegal commodity rather than a formal, sustainable energy source that needs to be regulated.

●       Lack of land-use planning: There is no explicit policy framework governing land-use conflicts between food crops and fuel crops, creating risks for food security.

●       Limited Incentives in the bioenergy value-chain: Lack of robust fiscal incentives, such as tailored tax subsidies, for small and medium-sized enterprises (SMEs) engaged in energy crop cultivation and processing.

●       Delay in development of key policy documents: While progress has been made at national level, counties still need to develop county energy plans (CEPs) or start implementation through development of Regulations for the CEPs already developed.

2.6.2. Institutional Framework

●       Mandate Overlap and Silos: There is weak coordination between the Ministry of Energy (which focuses on electricity/petroleum) and the Ministry of Agriculture (which focuses on food crops).

●       Limited County-Level Capacity: Under the County Energy Plans (CEPs), county governments are tasked with promoting local energy resources. However, counties have been hindered by limited technical expertise and human resources.

●       Regulatory Voids in Supply Chain: The Energy and Petroleum Regulatory Authority (EPRA) has limited coverage over the decentralized, small-scale production and marketing of biomass energy, leaving a void in quality control and sustainability certification.

●       Research to Policy Gap: Local university findings on biomass feedstock viability for biodiesel are not consistently integrated into policy formulation.

2.6.3. Implementation and Operation

●       Weak Enforcement: Regulations that have already been developed require enforcement to formalize the bioenergy sector.

●       Inadequate Data: There is a lack of reliable, up-to-date data on biomass energy demand-side patterns and available land for energy crops, making evidence-based planning difficult.

●       Weak Extension Services: There is a limited critical mass of agriculture extension officers and those available lack specialized training on integrating energy crops into existing farming systems.

SECTION 3 – POLICY RECOMMENDATIONS

3.1 Policy and Institutional Strengthening

3.1.1 Strengthening existing policy frameworks

●     Harmonization of agricultural and energy policies: Prioritization of Energy crops and other biomass that serve as sources of bioenergy is necessary to increase local production. Classification of cassava, sugar, sorghum and sweet sorghum as industrial crops under the Agriculture and Food Authority (AFA) and the Ministry of Agriculture to prioritize their research, development, cultivation, processing, marketing and trade. 

●       Zero-Rate Locally Produced Bioethanol: Implement tax exemptions (VAT) and remove import duties on bioethanol fuel to make it competitive with traditional fuels like charcoal, thereby driving demand and stimulating local investment.

●       Define Land Use and Sustainability Criteria: Formulate strategies to optimize land use for energy crops, ensuring they do not compete with food security, such as prioritizing marginal lands for farming feedstock. Agricultural policy at both national and county level must balance food security with the growing opportunity in energy crop commercialization.

●       Formulate Clear Biofuels Policies: Create specific, long-term policies that define the role of bioethanol in the energy mix, reducing the 25% import tariffs that currently hinder market growth.

●       Integrate into Clean Cooking Strategies: Ensure that ethanol fuel crop farming is integrated into national clean cooking transition strategies and climate action plans (e.g., NDCs).

3.1.2 Strengthening Regulatory Frameworks

●       Safety and Quality Standards: Enforce standards through KEPHIS for seeds and Kenya Bureau of Standards (KEBS) for bioethanol stoves and fuel to increase consumer confidence.

●       Regulate Licensing and Certification: Simplify the licensing process for producers and distributors while setting up clear safety guidelines for transport and storage.

●       Regulate Carbon Finance Schemes: Develop specific regulations for carbon financing within the cooking sector, allowing producers to monetize the emissions reductions from clean cooking.

●       Ban Inefficient Alternatives: Phase out the use of kerosene for domestic cooking to create market space for cleaner, locally produced biofuels.

3.1.3 Strengthening Institutions

●       Establish a Technical Working Group on Bioenergy: Strengthen collaboration between the Ministries of Energy, Agriculture, Environment, and Health to address cross-cutting issues like land use and food-versus-fuel debates.

●       Strengthen EPRA Enforcement: Enhance the capacity of the Energy and Petroleum Regulatory Authority (EPRA) to oversee the entire bioethanol value chain from farm to stove.

●       Support Farmer Cooperatives and outgrower Schemes: Promote the inclusion of smallholder farmers in the supply chain through cooperatives to manage the economies of scale needed for profitable ethanol production.

●       Private Sector Investment: Create public-private partnerships (PPPs) to develop infrastructure for feedstock processing and distribution, particularly at the community level.

3.1.4 Research and Development

●       Promote High-Yield Feedstocks: Invest in research for high-yielding, non-food feedstocks such as sweet sorghum or cassava, which can thrive in arid conditions and require less capital than traditional sugarcane.

●       Data Management and Market Information: Establish a central repository to track ethanol production, consumption, and the efficiency of the supply chain to guide future policy decisions.

3.2 Implementation Matrix

The implementation matrix looks at short-term (1–2 years), medium-term (3–5 years), and long-term (6–10 years) actions to support energy crop development, strengthen trade linkages, and expand the role of energy crops, in particular cassava, sorghum, and sugarcane in bioethanol and broader bioeconomy markets. They are grounded in Kenya’s clean cooking and bioenergy policy direction, which targets strong growth in bioethanol use and explicitly calls for programs to stimulate energy crop cultivation.

3.2.1 Short-term policy recommendations (1–2 years)

3.2.2 Medium-term policy recommendations (3–5 years)

3.2.3 Long-term policy recommendations (6–10 years)

4.0 County Policy briefs

4.1 Kilifi County

County Context

Kilifi County is located along Kenya's coast, covering approximately 12,370 km². It is classified as a semi-arid and arid land (ASAL) county, with most of its landmass receiving low and erratic rainfall. The county's agro-ecological conditions characterized by poor soils, low rainfall and high temperatures create both a challenge and an opportunity: they limit conventional food crop agriculture but are well-suited to drought-tolerant energy crops such as cassava and sweet sorghum. Agriculture is the backbone of Kilifi County's economy, with a majority of the rural population engaged in smallholder farming. Cassava is a key staple and increasingly a commercial crop, particularly as Giraffe Bioenergy creates a formal market for the crop as a feedstock for bioethanol production.

Potential for Bioenergy in Kilifi

As with much of rural Kenya, traditional biomass dominates Kilifi's household energy landscape. Over 80% of households rely on firewood and charcoal for cooking and heating. The increasing population in Malindi and Kilifi provides an expanded market for charcoal as it provides ready incomes for the youth and low-income households. This heavy dependence on woody biomass contributes to deforestation, indoor air pollution, and related respiratory diseases. Charcoal production is widespread but largely informal and unregulated, placing significant pressure on the county's tree cover.

National data shows that bioenergy accounts for 68% of Kenya's total energy demand, with rural areas such as Kilifi at the higher end of this, with up to 90% of rural household energy needs being met by biomass. The transition from traditional to modern bioenergy (bioethanol, biogas, briquettes) is therefore both an environmental imperative and an economic opportunity for Kilifi.

Kilifi Energy Crops Endowment

Policy and regulatory environment for the Bioenergy Sector

The national energy policy framework that governs Kilifi County includes a set of key documents that provide the basis for county-level bioenergy planning and action. These policies provide both opportunities and obligations for the county government.

In line with the Energy Act 2019, Kilifi County has developed a County Energy Plan (CEP) that localizes the national bioenergy strategy. Given Giraffe Bioenergy's presence in Kilifi, the county is positioned as a primary production zone for bioethanol for Kenya. However, achieving this requires:

●       Last mile connectivity for power and road networks would significantly support the private sector investors, such as Giraffe Bioenergy, in the county. Giraffe Bioenergy currently operates on diesel power and extension of electricity to the plant would significantly reduce operational costs and improve competitiveness of locally-produced ethanol.

●       Expanding bioethanol stove distribution within Kilifi — household adoption remains low.

●       Lowering bioethanol fuel prices through VAT exemptions and supply chain efficiencies.

●       Strengthening the last-mile distribution network from Giraffe Bioenergy to rural households.

●       Integrating bioethanol clean cooking into the county's social protection and health programs. EPRA licensing requirements for small-scale bioethanol distribution are perceived as burdensome for rural enterprises and cooperatives. Development of a regulatory environment for ethanol value chain would significantly help to translate EPRA requirements at the county level.

Agricultural policy at both national and county level must balance food security with the growing opportunity in energy crop commercialization. Giraffe Bioenergy operates a contract farming model with smallholder farmers in Kilifi, providing planting materials, training, and a guaranteed market. This model is aligned with national policy on agribusiness development and the Bioethanol Master Plan's supply chain development agenda. However, the formal regulatory framework for contract farming in Kenya remains weak:

●       No specific legislation governs contract farming arrangements at county level.

●       Disputes over quality standards, price, and collection schedules are common.

●       Side-selling by farmers undermines contractual commitments.

●       Farmers lack awareness of their rights under contract agreements.

Kilifi County has a fragile environment as an ASAL county, so understanding the risks and opportunities of energy crop development is critical in bioenergy development. The county's semi-arid landscape is under pressure from deforestation (driven largely by charcoal production), soil degradation, and the increasing impact of climate variability. Energy crop development has the potential to reverse the trend if well managed but also has the potential risk of exacerbating these pressures in the absence of a medium to long term view and proper management.

Implementation of applicable charcoal regulations: Charcoal is the dominant cooking fuel in Kilifi, produced largely from indigenous tree species in an unregulated and unsustainable manner. Kenya's national charcoal production is estimated to account for over 75% of bioenergy supply, and coastal counties including Kilifi contribute significantly to this supply. The transition to bioethanol cooking fuel is directly relevant to reducing charcoal demand: each household that switches to bioethanol reduces its pressure on Kilifi's forests. The Charcoal Rules under the Forest Conservation and Management Act and NEMA's Environmental Management and Coordination Act (EMCA) provide the national framework. However, enforcement at county level is weak, and sustainable charcoal certification systems have not been implemented in Kilifi.

Land Use, biodiversity and ASAL Management: Kilifi's ASAL classification means that large areas of land are marginal for conventional food crops but potentially highly productive for drought-tolerant energy crops. The national policy framework (National Land Use Policy, Environmental Management and Coordination Act) provides the basis for land-use planning, but county-level implementation has been slow.

Key environmental risks from energy crop expansion that Kilifi must manage:

●       Monocropping risk: Large-scale cassava monocultures reduce biodiversity and increase vulnerability to pests and diseases.

●       Water competition: Irrigation schemes for energy crops may deplete ground and surface water sources in an already water-scarce county.

●       Soil acidification and nutrient depletion from intensive cultivation and overuse of synthetic fertilizers.

●       Displacement of pastoralists who use rangeland in ASAL areas - a key equity and conflict risk.

Climate Change adaptation and Resilience: Kilifi is highly vulnerable to climate change, with increasing frequency of drought, erratic rainfall, and coastal flooding. Cassava's drought tolerance makes it a key climate adaptation crop. Energy crop policy in Kilifi should explicitly link to the county's climate change adaptation agenda:

●       Integrate energy crop cultivation into Kilifi's County Climate Change Action Plan.

●       Access funding from the Green Climate Fund (GCF) and Kenya's Climate Finance mechanism for drought-resilient energy crop programs.

●       Advocate for a county-level drought insurance scheme for cassava and energy crop farmers.

●       Promote soil conservation and water harvesting practices in energy crop farming systems.

Social Inclusion, Gender and Governance: Giraffe Bioenergy's business model specifically targets women smallholder farmers as primary producers, recognizing both their central role in Kilifi's agricultural economy and the disproportionate burden they bear from traditional cooking practices (indoor air pollution, firewood collection). This social mandate needs to be reinforced and expanded through formal county and national policy

●       Women perform the majority of cassava farming operations in Kilifi but often lack formal land title, limiting their access to credit and formal contracts.

●       Giraffe Bioenergy's contract farming program provides a cash income directly to women, a significant step toward financial inclusion.

●       The transition from charcoal to bioethanol directly benefits women and children through reduced indoor air pollution and reduced time spent collecting firewood.

Capacity development for women and youth: The bioethanol value chain from cultivation to processing to distribution offers significant employment opportunities for youth in Kilifi. The Bioethanol ECF Master Plan projects 370,000 jobs nationally if fully implemented. Kilifi should position itself to capture a significant share of these jobs by:

●       Strengthening the role of TVET institutions in Kilifi to have a formal training on bioenergy.

●       Creating apprenticeship programs with Giraffe Bioenergy for youth in plant operations and agronomy.

●       Integrating energy crop agribusiness modules into county youth enterprise programs.

Governance and Institutional Coordination: Effective governance of the energy crops sector in Kilifi requires coordination across multiple county departments (Agriculture, Energy, Environment, Trade) and alignment with national agencies (Ministry of Energy, Ministry of Agriculture, EPRA, NEMA, KALRO). Current challenges include:

Policy Gaps identified

1. Limited coordination between agricultural and energy departments
2. Lack of regulations on energy crop (licensing, standards) and specialized zoning for energy crops. 
3. Low prioritization of energy crops with county budgetary allocation
4. Weak producer farmer cooperatives and Underdeveloped market infrastructure for processing energy crops

Recommendations

1.      Integrated Planning:Establish a dedicated Kilifi County BioEnergy Directorate to coordinate agricultural and energy sectors. Energy crop fall between Agriculture (feedstock) and Energy (fuel) departments with no coordinating mechanism.

2.      Implementation of policies: Development of county regulations and Act of the county assembly are required for effective implementation of the existing County Energy Plan (CEP).

3.      Prioritization of energy crops: Include energy crops in the CIDPs and ADPs as priority cash crops. Kilifi County is one of the few counties that meets the 10% target under Malabo declaration. However, the budgetary allocations for energy crops are minimal. As part of prioritization of energy crops, existing rural farmers cooperatives need to be strengthened. Further, cushioning farmers through subsidies such as provision of planting seedlings and, establishment of insurance schemes during drought are necessary for inclusion of poor households and sustainability.

4.      Land Use planning and rural infrastructure: Land fragmentation hinders large-scale energy crop production. Guidelines for land-use optimization needs to be developed to balance food security with energy crop cultivation.

5.      Improves infrastructure: Extension of bitumen road and electricity line to reach Giraffe Bioenergy would significantly reduce cost of operations and facilitate delivery of raw materials for bioethanol.

4.2 Kajiado County

Context

Kajiado County in southern Kenya is characterized by a diverse agro‑pastoral economy, semi‑arid landscapes, and rapidly evolving urban and peri‑urban centres that lie along major transport corridors from Nairobi to Kenya’s international border with Tanzania. The county’s population includes rural agro‑pastoralist communities and growing urban populations in towns such as Ongata Rongai, Kitengela, Ngong and Kajiado Town. Urban growth intensifies demand for reliable energy services and modern fuels, while rural areas face challenges related to climate fragility, food security, and energy access. Agriculture, livestock, and trade, drive local livelihoods. Access to energy is uneven with urban households increasingly using modern energy (electricity, LPG, solar) while most rural households rely on traditional biomass, where 75 % of rural energy needs are met by firewood and charcoal. Electrification stands at about 40 % and extension efforts are ongoing, supported by last‑mile connectivity funding in the Kajiado County Energy Plan, with the aim of expanding grid access and reducing dependence on biomass fuels and attaining universal access by 2030. The county’s recent launch of the County Energy Plan marks a significant policy milestone, laying out strategies to promote sustainable and modern energy sources for both household and commercial needs.

Potential for Bioenergy in Kajiado County

Kajiado County arid and semi-arid lands (ASALs) with significant potential for renewable energy from Solar due to abundant sunshine suitable for off‑grid and grid‑tied generation, and biomass from agricultural residues, solid waste, slaughterhouse waste, and invasive species as feedstock for biomass. The grazing areas of the county have invasive species of Prosopis juliflora while agricultural areas produce agricultural residues that could serve as bioenergy feedstock. Private firms handle refuse collection in urban centres but inadequate waste infrastructure contributes to accumulation of waste in public spaces and environmental contamination, particularly in Ongata Rongai. Organic waste comprises a large share of the waste stream, presenting an opportunity for waste‑to‑energy systems that could significantly reduce environmental impacts and provide clean energy feedstocks.

Energy crops suitable for Kajiado County

Energy crops and drought-resistant crops suitable for energy generation in Kajiado County include: 

•      Sorghum: A robust fodder crop utilized in sustainable forage production for livestock, providing biomass and resilience against drought.

•      Millets: Similar to sorghum, these are used as drought-resistant fodder crops.

•      Rangeland Grasses: Grown to improve fodder availability.

•      Bamboo: Identified as a potential agroforestry crop for re-greening initiatives, providing industrial biomass.

•      Sunflower: Cultivated in some areas, potentially suitable for biofuel extraction.

•      Leguminous Crops: Various fodder legumes are promoted to improve soil fertility and provide high-quality livestock feed. 

Policy and regulatory environment for the Bioenergy Sector

Kajiado county’s efforts in development of energy crops and bioenergy sector is guided by several national and county policies and regulations, as shown in ther table below:

Kajiado launched its County Energy Plan in late 2024, in line with the Energy Act 2019, which mandates integrated energy planning at county level. The Plan outlines strategies to:

●       Accelerate electrification toward national goals.

●       Promote economical and sustainable energy sources for households and businesses.

●       Integrate energy planning with socio‑economic development priorities.

The County Energy Plan sets strategic direction for clean energy, but it currently has limited explicit integration of bioenergy and energy crop value chains, especially those leveraging biomass and waste feedstocks.

Recommendations

For the bioenergy sector to develop, the county needs to implement the following recommendations:

•      Harmonize policies: Energy and agriculture need to be harmonized to prioritize energy crops.

•      Implementation of the County Energy Plan: Establishing county regulations and acts of county assembly is necessary for implementation of the county energy plan.

•      Promote private‑public partnerships and establish incentives for private sector businesses: (e.g., tax breaks, seed funding) for bioenergy SMEs and rural aggregators. Example: Iko-briq for processing sweeting sorghum

•      Enhance institutional capacity in Coordination in agriculture and energy planning and implementation.

•      Strengthen Producer organization: Support farmer aggregation, cooperatives, and contract farming models for cassava, sorghum, and sugarcane.

•      Public awareness on clean energy adoption, gender equity in energy access, and resource recovery benefits.

4.3 Kisumu County

Context

Kisumu County, situated on the shores of Lake Victoria in western Kenya, covers approximately 2,009 km². It is the third-largest city in Kenya and a major regional economic hub. Unlike the typical ASAL counties, the county consists of high and medium potential agricultural land, peri-urban zones, and lake-basin ecology, where economic activities include rice and sugarcane farming, commerce, fishing aquaculture.

Potential for Bioenergy sector

Rural households in Kisumu County depend on traditional biomass (firewood and charcoal) for their energy source. Charcoal and firewood remain dominant in peri-urban and rural areas, while LPG use is growing in Kisumu City.

There is high potential for bioenergy sector  development in Kisumu County that is dependent on sugarcane industry with molasses-to-ethanol potential, an nascent but expanding urbanmarket for  clean cooking energy, and an agricultural sector with high potential to sorghum, cassava, and sweet sorghum as complementary energy crops. Kibos Sugar and Allied Industries has been one of the only two active ethanol producers nationally contributes to the ECF Master Plan's current production estimate of approximately 11.3 million litres of ethanol per year against a demand of 40 million litres. Kisumu is therefore both a current producer and a county with significant untapped potential to expand bioethanol supply through diversified feedstocks. The sugar industry in the county is transitioning toward using bagasse (sugarcane residue) for electricity co-generation — the bagasse-based cogeneration potential is estimated at 550 GWh/year nationally, a resource Kisumu's factories should optimize.

Policies and strategies

Development of energy crops is guided by the Kisumu county energy plan (2021 – 2026) as well as other national policies and regulations namely Kenya Bioenergy Strategy 2020–2027, Energy Act 2019, Bioethanol ECF Master Plan, Energy (Biofuels) Regulations 2025 and, KNCTS 2024–2028.  The following gaps exist:

·         Policy coherence between agriculture, energy and environment

·         Limited regulations for energy crops such as sugar

·         Integration of County Energy Plan into Annual Development plans and County Integrated Development Plan and budgetary allocations

·         Lack of a data system for monitoring progress

Recommendations

The following recommendations would allow Kisumu County to make signficant progress in the development and utilization of energy crops for generation of energy.

4.4 Nakuru County

Context

Nakuru County, is located in Kenya's Great Rift Valley, between Latitude 0° 13' and 1° 10' South, with a population of 2.2 million people in 2019, estimated to have grown 3.05 million people. The county’s economic activities include agriculture as 67% of the county’s landmass is arable, and tourism supported by strategic natural resources namely Lake Nakuru, Lake Naivasha, Lake Elmenteita, and Menengai Crater, and wildlife. Electricity is the main source of household lighting (about 55.4%) in Nakuru, but firewood and charcoal remain dominant for cooking (42.6% and 30.7%, respectively), placing pressure on forests and contributing to deforestation. Renewable sources like solar, biogas, and wind remain under‑utilized, though geothermal potential exists due to the proximity of the Olkaria geothermal complex, which is a key national energy asset. Further, Nakuru County has made significant effort in championing the use of modern clean cooking solutions, aiming to reduce household reliance on polluting fuels (firewood, charcoal) and align with national clean cooking strategies. Initiatives include awareness campaigns, installation of efficient cook stoves in schools, and public education on clean fuels like LPG, biogas, bioethanol, solar, and electric cooking. These efforts enhance public understanding of the health and environmental benefits of switching to cleaner energy sources.

Energy crops suitable for Nakuru County

Nakuru has a fertile agricultural land and sufficient rainfall that would support diverse crops for energy production. Combining energy crop feedstock potential with renewable energy systems (biogas, briquettes, bioethanol) offers opportunities for job creation, rural‑urban value chain linkages, and reduction of pressure on forests caused by charcoal extraction. The following crops are suitable for Nakuru County :

Policy Frameworks

The county Government of Nakuru has developed several policies that relate to and would support bioenergy sector and cultivation of energy crops. These include, Nakuru County Energy Plan 2022-2027, The Nakuru County Agroecology policy 2025, Climate Change Act (2021) and Regulations (2022): Empowers the county to mobilize resources for including projects that support renewable energy sources.

The following gaps were idenfied and actions recommended

4.5 Nairobi County

Context

Nairobi County is the primary economic and administrative hub for Kenya. It has an estimated population of approximately 5.5 million, which is growing at 4.0% per year, driven largely by rural-to-urban migration. Its dense population and diverse socio-economic demographics make it the largest consumer market for energy crops and bioenergy products, despite producing limited crops locally. Informal settlements such as Kibera, Mathare, and Mukuru house a significant proportion of low-income households. These areas rely heavily on traditional biomass fuels due to cost constraints, limited access to modern energy solutions, and historical cooking practices. Nairobi County serves an important role of manufacturing bioenergy equipment and providing a market for bioenergy sector.

Bioenergy sector

Urban demand from households, institutions, and commercial enterprises drives the cultivation of energy crops in Peri-urban areas of Nairobi County and other neighboring counties such as Kajiado, Machakos, and Kiambu. The following energy crops are suitable for Nairobi county.

Bioethanol and briquette production in Nairobi is a growing sector driven by the need for sustainable, clean, and affordable energy alternatives to charcoal and firewood. In the low income areas of Nairobi, houses are close to each other and, women are responsible for cooking which exposes them disproportionately to indoor air pollution. Opportunities, therefore, exist to empower women through clean energy enterprises, including:

·         Processing of energy crops and distribution of biofuels.

·         Urban aggregation hubs for energy crops.

County Policies

The following policies regulate bioenergy sector in Nairobi

·         Urban and Peri-Urban Agriculture Policy (2015) – supports urban farming but lacks bioenergy focus.

·         Air Quality Action Plan (2025–2029) – identifies household biomass as a pollution source; limited bioenergy integration.

·         Climate Action Plan (2020–2050) – promotes renewable energy adoption; weak implementation pathways for energy crops.

·         Draft Urban Agriculture & Food Security Bill – opportunity to integrate energy crops and urban waste-to-energy frameworks.

Policy Gaps and Recommendations

The following policy gaps need to be addressed for energy crops sector to develop in Nairobi:

5.0 References

2        “Kajiado launches the County Energy Plan.” Kenya News Agency (Oct 25, 2024). (Kenya News Agency)

3        Kajiado County Renewable Energy Atlas. County Government of Kajiado (2020). (Kajiado County Government)

4        “Kajiado Sustainable Environment & Economy Against Drought Degradation (K‑SEED).” Kajiado County Government. (Kajiado County Government)

5        “Installation of Simple Biogas Digesters to Sustain Energy Needs for Rural Areas in Kajiado.” UNFCCC Momentum for Change Case Study. (UNFCCC)

6        “Clean Energy for Improved Health III – Solar Power for Health Facilities in Kajiado.” Renewable World. (Renewable World)

7        “Kajiado Promotes Access to Cleaner Energy Sources.” PesaYetu (2022). (PesaYetu)

8        “Stakeholders Endorse Proposed Integrated Waste Management Facility for Kajiado County.” UN‑Habitat (2018). (UN-Habitat)

9        Daystar University, “Assessing the Effects of Waste Management Practices in Kajiado.” (2024). (Daystar University Repository)

10    Nakuru Agro‑Ecology Policy 2025. Nakuru County Government. (Nakuru County)

11    Nakuru Waste Management Act 2021 & Policy Review Updates. (Nakuru County)

12    Clean Cooking Initiatives in Nakuru County. (Kenya News Agency)

13    Water, Energy, Environment & Natural Resources Mandate (Nakuru County). (Nakuru County)

14    Renewable energy profile and energy use statistics. (Renewables Roadmap)

15    NAWASSCOAL briquette initiative. (Citizen Digital)

16    KNBS. 2023. Kenya Population Census Data. Nairobi: Kenya National Bureau of Statistics.

17    NEMA. 2024. State of Environment Report. Nairobi: National Environment Management Authority.

18    Nairobi County Government. 2015. Urban & Peri-Urban Agriculture Policy.

19    Nairobi County Government. 2025. Air Quality Action Plan 2025–2029.

20    Nairobi County Government. 2020. Climate Action Plan 2020–2050.

21    Kenya Ministry of Energy. 2020. Kenya Bioenergy Strategy 2020–2027.