The government plans to tap into the developed Chinese power generation market in a bid to transform Kenya into a regional manufacturing hub.
Kenya is eyeing partnerships with Chinese firms in the renewable energy space, targeting waste, geothermal, and solar, as it seeks to grow its generation and transmission capacity.
The two countries are currently co-hosting the MegaWatt Africa, on the sidelines of China Trade Week, where 40 Chinese businesses in the renewable energy space are showcasing their products in Nairobi.
Africa Build Show and Africa Technology Show are also taking place as part of the China Trade Week.
Principal Secretary State Department for Energy Alex Wachira said enhanced access to power would make Kenya a manufacturing hub, with the intention to use this demand as the tailwind to have some of the Chinese equipment, such as solar panels and mini-grid components, manufactured locally.
Wachira said China has significant experience in renewable energy technologies, electricity transmission, battery storage, electric mobility and the mass manufacture of energy equipment.
Kenya, on the other hand, he noted, has rich renewable energy resources, a strategic geographical location in the region as a growing market and a comprehensive policy framework on green energy development.
“The complementarity between our two countries is clear. However, our corporation must extend beyond importation of finished equipment,” he said.
“Kenya seeks partnerships that support local assembly, component manufacturing, technology transfer, research, technology training and development of the local supply chain.”
Wachira, who was represented by Secretary Electrical Power Development, State Department for Energy, Eng Thomas Karungu, said Kenya welcomes Chinese investors interested in transformers, smart meters, transmission equipment, electric vehicle charging infrastructure and solar panel manufacturing.
“These investments collectively should create employment in Kenya, strengthen our technical capabilities and position the country as a manufacturing and distribution base for the wider East Africa market,” he said.
David Wang, chairman of MIE Group, the firm behind the event, said the expertise of Chinese firms in green energy informed the invitation of the more than 40 firms taking part in the event.
He said China also has an elaborate supply chain for power generation and transmission equipment.
“All of these industry people are willing to enter the Kenyan market,” he said.
He cited Kenya’s shortage of power, as documented by Kenya Power, indicating that Chinese firms are willing to help the country achieve its goal of 100 per cent green energy by 2030.
“Chinese companies are willing to partner with Kenya and also invest here,” Wang said.
“These platforms are events for Kenyan buyers. They come, meet international players, and look at next-generation solutions, technology, energy and infrastructure, with the view that they can work with these manufacturers and suppliers to deliver projects,” added MIE Vice President Zahoor Ahmed.
Apart from the 100 per cent green energy target by 2030, Kenya also seeks to achieve universal access to electricity and clean cooking by the same period.
Currently, hydro, geothermal and wind contribute about 90 per cent of the green energy on the national grid.
President William Ruto has previously indicated that in order for Kenya to be fully industrialised, it needs 10,000MW. The country’s generation now stands at around 2,300MW.
“These are not modest undertakings. They require capital, technology, technical expertise, strong institutions and sustained cooperation between public and private sectors. This means significant investment in generation capacity, transmission and distribution systems, mini-grids, energy storage, and off-grid solutions,” said PS Wachira.
