Kenya eyes Chinese investment to accelerate clean energy transition

Kenya is seeking to attract Chinese investment in the local manufacturing of clean energy equipment as it accelerates its transition to renewable energy and positions itself as East Africa's green manufacturing hub.

Thomas Karungu, alternate director to the principal secretary in Kenya's State Department for Energy, said Kenya offers an attractive investment destination, underpinned by abundant renewable energy resources, a strategic regional location, a growing market, and an increasingly supportive policy environment for clean energy development.

He said China, with its expertise in renewable energy technologies, electricity transmission, battery storage, smart grids, electric mobility, and large-scale manufacturing of energy equipment, is well positioned to support Kenya's clean energy ambitions through local production, technology transfer, and industrial partnerships.

Karungu said the Kenyan government is seeking partnerships that promote local assembly, component manufacturing, technology transfer, research, technical training, and the development of local supply chains.

"We welcome Chinese investment in solar panel manufacturing, transformers, smart meters, transmission equipment, and electric vehicle charging infrastructure," he said. "We also invite partnerships in geothermal development, mini grid deployment, clean cooking, waste energy projects, and the digital management of electricity networks."

He said such investments would create jobs, strengthen Kenya's technical capacity, and position the country as a manufacturing and distribution hub for the wider East African market.

To support growing electricity demand, Karungu said the government plans to modernize and expand the national transmission network by about 8,000 kilometers and add approximately 12,000 megavolt-amperes of transmission capacity by 2030.

He said delivering these projects will require significant investment, advanced technology, technical expertise, strong institutions, and sustained collaboration between the public and private sectors.

"To the investors and financiers and energy project developers, Kenya has set a clear direction for its energy transition," he said. "Achieving universal access while expanding our transmission network and meeting rising demand will require substantial private sector participation."

Cao Wenjing, a representative of a Chinese renewable energy company, said the company entered the Kenyan market last year after expanding into Nigeria, South Africa, and Zimbabwe.

"Competition is very intense because most suppliers in this sector come from China," Cao said. Despite the competition, he said Kenya's abundant solar resources, relatively high electricity costs, and growing demand continue to create business opportunities.

Wu Xiaohui contributed to this story.