Kenya’s quest to establish sustainable energy projects to the tune of US$27 billion by 2030 is hitting turbulence. Investors seeking to be part of the financing are questioning the size, viability and poorly structured to attract private capital.
A high-level meeting organized in New York recently discussed some of these projects and the capital risks they present noting that the expected returns may not justify the risk.
The only option available at the table was the use of blended capital. This is a concept where multilateral funders like World Bank, and African Development Bank, AFD can guarantee finance for renewable energy projects that are too small to make immediate financial returns such that commercial banks can chip in once the risks are reduced.
The high-level roundtable convened by the Global Investors for Sustainable Development Alliance in New York where the Kenyan government, development finance institutions, banks and private-sector players discussed how to bring more private capital into Kenya’s energy transition.
Kenya presented its updated Energy Compact, which aims to mobilize approximately US$27 billion by 2030 and expand private participation in renewable energy, transmission infrastructure, and clean energy access.
It also presented opportunities for investors to participate in commercially viable green and climate-related investments across priority sectors.
In 2026, Kenya was selected as a pilot country—alongside Colombia and Indonesia—for the GISD Alliance’s country-level implementation work programme, working alongside the UN Resident Coordinator’s Office and the SDG Partnerships Platform.
