PPA freeze slowed Kenya’s renewable energy investment, Bloomberg report
While the moratorium helped halt non-competitive bilateral power deals signed at high prices, it also delayed investment by new independent power producers at a time when the country's electricity reserve margins were tightening...
✨ Key Highlights
A BloombergNEF report highlights that Kenya's freeze on new Power Purchase Agreements (PPAs) between 2018 and late 2025 significantly hampered investment in utility-scale renewable energy projects, despite renewables making up over 80% of installed capacity.
- The moratorium, intended to stop high-priced deals, delayed new Independent Power Producers (IPPs) when electricity reserves were tightening.
- Kenya needs to add nearly 1GW of capacity annually by 2030 to support economic growth, requiring an end to stalled utility-scale investment.
- The Kenyan government has lifted the freeze and is moving towards competitive renewable energy auctions, with solar power and battery energy storage expected to be early investment opportunities.
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PPA Freeze Slowed Kenya's Renewable Energy Investment, Bloomberg Report - July 2026
A BloombergNEF report reveals that Kenya's freeze on new Power Purchase Agreements between 2018 and late 2025 significantly hampered investment in utility-scale renewable energy projects, despite renewables comprising over 80% of installed capacity. At the same time, oil prices have surged past $100 a barrel for the first time since May, driven by escalating conflict in the Middle East and Houthi militia attacks on tankers in the Red Sea. Meanwhile, controversy surrounds Dangote Group's proposed Sh2.2 trillion oil refinery in Lamu, part of the LAPSSET Corridor project. The interplay between renewable energy challenges and fossil fuel dynamics highlights Kenya's complex energy transition landscape.
