Energy poverty is a problem in Kenya. IESE’s Ahmed Rahnema examines current challenges in the country’s power generation, quest for alternative fuels, cooking needs and fertilizer production – and offers possible solutions, as well as prime investment opportunities.

1. 4
KENYA
ENERGY CHALLENGES
IN KENYA
AND HOW TO FACE
THEM

2. KENYA
Kenya grapples with
energy poverty
Professor Ahmad
Rahnema holds the
Fuel Freedom Chair
for Energy and Social
Development at IESE,
which examines
energy challenges and
possible solutions in
developing nations.

3. For Kenya, research is focused on four key
pillars:
Power Generation
Alternative Fuels for Transportation
Cooking Fuels
Fertilizer Production
KENYA

4. POWER
Kenyan power generation
is hydro-dependent, in a
country that frequently
suffers droughts.
Power
KENYA

5. 5.6%
Companies register losses equivalent to
of annual sales due to power cuts and blackouts.
POWER
KENYA

6. Simplifying regulatory
requirements, procuring power
competitively and engaging
communities could lead to a
more reliable, cost-effective and
accessible energy system.
POWER
KENYA

7. Taking advantage of new
technologies, such as solar off-grid
solutions, can also help to improve
access in remote areas.
POWER
KENYA

8. ALTERNATIVE FUELS
The demand for fuel is growing,
putting pressure on oil prices,
worsening dependence on fossil
fuel imports and deteriorating
the country's balance of
payment.
Alternative
Fuels
KENYA

9. Subsidies and taxes favor
one kind of fuel over others.
Part of the problem
is market
inefficiencies.
ALTERNATIVE FUELS
KENYA

10. Diversifying fuel types and developing a local
ethanol market – harnessing the potential of the
sugar cane produced locally – could bring about
great changes, leaving Kenya less vulnerable to
external shocks.
ALTERNATIVE FUELS
KENYA

11. Cooking
COOKING
82% of households still use
firewood or charcoal for
daily cooking, with negative
impacts on the
environment and health. So
why do they do it?
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12. are the key variables.
Affordability and
access to credit
COOKING
KENYA

13. Helping people buy stoves on credit, competitive
pricing for alternative fuels, and using mobile
phones to pay for fuel would help transform this
situation.
COOKING
KENYA

14. Fertilizer
But only 8% of land is used for
agriculture.
In Kenya, 700,000 people
live with food insecurity.
FERTILIZER
KENYA

15. Chemical fertilizer use could
help assure crop yields, but
there is no local production,
and government policies have
been inefficient.
As a consequence, fertilizers
are expensive and can be
difficult to find.
FERTILIZER
KENYA

16. Education and foreign private investment to produce
fertilizers locally and to facilitate access to credit
could change the way Africa eats!
FERTILIZER
KENYA

17. Explore these findings and related investment
opportunities in four new papers by the Fuel Freedom
Chair for Energy and Social Development:
"Powering Kenya: Understanding the Landscape and
Exploring Possibilities for Investments"
"Kenya's Imperfect Fuel Market: Tackling Real
Problems With Real Solutions"
"Alternative Cooking Fuels in Kenya: How Can Household
Decision-making Be Impacted?"
"Growing Kenya: Exploring Investment Opportunities in
Kenya's Fertilizer Industry"