KENYA Law and Practice Contributed by: Mary Waithiegeni Chege, Mary Anne Wachira and Joy Odhiambo, EMSI & Asssociates
A further layer of regulatory assurance lies in ongoing licence compliance and reporting obligations. Licen- sees are required to demonstrate financial, technical and operational capability at the licensing stage, and must continue to provide EPRA with annual audited financial statements and performance reports. These obligations ensure continuous monitoring of the licen- see’s capacity to meet its obligations. Importantly, any new acquirer of electricity assets must satisfy EPRA that it possesses the necessary technical expertise and financial capacity to operate the undertaking. The acquirer must comply with all licence conditions and assume ongoing reporting and operational obligations. Overall, asset disposals and acquisitions in Kenya’s power sector are governed by a multi-layered regu- latory regime, combining sector-specific approvals, competition oversight, corporate law requirements and public accountability frameworks, all aimed at ensuring that transfers do not undermine reliability, The Ministry of Energy and Petroleum is mandated to develop a five-year Integrated National Energy Plan (INEP), and provides strategic direction to facil- itate growth of the energy sector, while the Energy (Integrated National Energy Plan) Regulations, 2025 provide a framework for a co-ordinated approach in energy planning in Kenya. National energy service providers are required to develop plans for the provi- sion of energy services, while county governments are obliged to develop county energy plans, taking into account the national energy policy and all viable energy supply options. competition or consumer interests. 1.5 Central Planning Authorities The INEP serves as an energy sector inter-govern- mental guide on the short-, medium- and long-term energy requirements, based on evolving economic, socio-political and technical issues, to ensure the delivery of reliable energy. It is reviewed every three years. The Cabinet Secretary is tasked with prepar- ing and publishing annual reports highlighting the pro- gress of its implementation.
County governments are charged with the prepara- tion of County Energy Plans incorporating petroleum, renewable energy and electricity master plans. They are also required to undertake physical planning relat- ing to energy resource areas such as dams, solar and wind farms, municipal waste dumpsites, agricultural and animal waste, ocean energy, woodlots and plan- tations for the production of bio-energy feedstock, as well as the facilitation of energy demand by plan- ning for industrial parks and other energy-consuming activities. Kenya Power co-ordinates electricity planning in the sector through the Least Cost Power Development Plan (LCPDP), with the most recent plan covering the period 2024–2043. The LCPDP details planned generation and transmission infrastructure based on projected electricity demand and least-cost technol- ogy options. 1.6 Recent Changes in Law or Regulation The following regulations have been passed in the last year. • The Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2026 commenced on 8 May 2026 and mainly provide a framework for the establishment of a competitive electricity market and non-discriminatory open access to the trans- mission and distribution system by licensees and consumers. • The Energy (Solar Water Heating) Regulations, 2025 commenced on 9 July 2025 and provide for the licensing of solar water heating system workers, manufacturers, importers, vendors and contractors, and the design, installation, testing, commissioning, repair and maintenance of solar water heating systems. 1.7 Announcements Regarding New Policies In November 2025, the Parliamentary Departmental Committee on Energy submitted an Addendum Report to the National Assembly outlining reforms aimed at improving efficiency, transparency and affordability in Kenya’s power sector. A key recommendation was the lifting of the moratorium on new PPAs, subject to strengthened safeguards, including:
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