A recent report by the Boston Consulting Group (BCG) titled, Powering Prosperity Through Energy Access, spotlights Kenya’s significant strides in energy and offers strategic insights for other nations.
Africa continues to face a major energy access gap, with 600 million people still lacking electricity, representing 83% of the global total. However, countries like Kenya demonstrate that rapid electrification is achievable, and will lead to dramatic change in the status quo in the coming years.
According to the report, Kenya has shown progress with its national electricity access rate soaring from approximately 32% in 2013 to 75% by 2022. This achievement was driven by a multi-faceted approach, including:
· An aggressive mix of grid expansion and off-grid solutions – The Kenyan government has invested heavily in distribution networks, including last-mile connectivity programmes, while also embracing innovations like prepaid metering and pay-as-you-go solar home systems for remote areas. The report emphasises that more than 50% of new connections will come from decentralised renewables, which are essential for rural last-mile areas where grid extension is slow and expensive.
· A robust regulatory environment – Kenya fostered a strong regulatory framework, ranking second in Africa (behind Uganda) in the African Development Bank’s Electricity Regulatory Index for its effectiveness in encouraging nationwide connectivity.
· Commitment to renewables – Over 90% of Kenya’s electricity comes from renewables like geothermal and hydro, proving that scaling access can align with a transition to clean energy. Solar prices have fallen by 80% over the past decade, enabling faster and cheaper deployment of mini-grids and home systems.
Katie Hill, Partner and Associate Director, Climate at BCG in Nairobi and one of the lead authors of the report comments on Kenya’s achievements: “Kenya’s journey is a powerful testament to what strong government planning, an engaged private sector, and a strategic embrace of both grid and decentralised renewable solutions can accomplish.”
“The country’s success in rapidly expanding access, coupled with a commitment to clean energy, provides an invaluable blueprint for other African nations striving towards universal electrification. It illustrates that by aligning public and private sectors, backed by data-driven planning and community engagement, lights come on and lives are truly transformed across the continent,” adds Hill.
The report further highlights that achieving Africa’s electrification goals, including connecting 300 million people by 2030, could boost the continent’s Gross Domestic Product (GDP) gains of $500+ billion by 2040. This can unlock significant foreign direct investment, create millions of jobs, improve school graduation rates, reduce infant mortality, and avoid 350+ million tons of CO₂ which will ensure that African manufacturers can remain export competitive in the face of clean-energy focused trade tariffs.
To reach universal access by 2030, annual investment in energy access in Africa needs to reach between $25 billion and $30 billion per year, significantly more than the current $3 billion to $4 billion invested today.
Download the report HERE.