SECTOR : Energy


Reforms in the energy sector have seen a complete reorganization and unbundling of functions into generation, transmission, distribution, oversight and policy functions.

Below represents the institutional structure in the country’s Energy sector: 

Name

  1. Ministry of Energy and Petroleum (MoE&P)
  • The MoE&P is in charge of making and articulating energy policies to create an enabling environment for efficient operation and growth of the sector.
  • It sets the strategic direction for the growth of the sector and provides a long term vision for all sector players.
  1. Energy Regulatory Commission (ERC)
  • ERC is established under the Energy Act, 2006.
  • Following the operationalization of the Act, the Electricity Regulatory Board (ERB)  became Energy Regulatory Commission (ERC) and is responsible for regulation of the energy sector.
  • Functions include: tariff setting and oversight; coordination of the development of Indicative Energy Plans; and, monitoring and enforcement of sector regulations.
  1. Energy Tribunal
  • The Energy Tribunal in Kenya was established by the Energy Act No 12 of 2006 to hear and determine appeals brought against the decisions of the Energy Regulation Commission (ERC).
  • The Energy Tribunal is an independent legal entity.
  1. Kenya Electricity Generating Company (KenGen)
  • KenGen is the main player in electricity generation in the country.
  • The company accounts for about 77% of the installed capacity from various power generation sources that include hydropower, thermal, geothermal and wind.
  1. Kenya Power and Lighting Company (KPLC)
  • KPLC is responsible for the distribution of electricity in Kenya.
  • It is the off-taker in the power market, buying power from all power generators on the basis of negotiated Power Purchase Agreements (PPAs) for onward transmission, distribution and supply to consumers.
  1. Geothermal Development Corporation (GDC)
  • GDC is a fully state-owned company, formed by the Government of Kenya as a Special Purpose Vehicle (SPV) to fast track the development of geothermal resources in the country.
  • The creation of GDC was based on the government’s policy on energy - Sessional paper No. 4 of 2004 and the Energy Act No.12 of 2006 - which un-bundled the key players in the electricity sector to ensure efficiency.
  • GDC is intended to undertake surface exploration of geothermal fields, undertake exploratory, appraisal and production drilling and manage proven steam fields as well as enter into steam sales agreements with investors in the power sector.
  1. Kenya Pipeline Company (KPC)
  • KPC is 100% State Owner Corporation, established in 1973.
  • KPC is mandated to provide effective, reliable, safe and cost effective means of transporting petroleum products from Mombasa to the hinterland.
  1. National Oil Corporation of Kenya (NOCK)
  • NOCK is a fully government owned corporation established in 1981.
  • It is charged with oil exploration, importation and sale of petroleum products including crude oil, white fuels, lubricants and Liquefied Petroleum Gas (LPG) in order to provide stability in the market.
  1. Kenya Petroleum Oil Refineries Limited (KPRL)
  • KPRL is the only refinery in East Africa.
  • It refines 40% of all petroleum product requirements in the country.
  • KPRL was originally set up by Shell and the British Petroleum Company BP, to serve the East African region in the supply of a wide variety of oil products.
  1. Rural Electrification Authority (REA)
  • REA was established in 2007, under Section 66 of the Energy Act, 2006 (No 12 of 2006), as a body corporate with a mandate of implementing the Rural Electrification Programme.
  • The Authority was created in order to accelerate the pace of rural electrification in the country, a function which was previously undertaken by the Ministry.
  • Since the establishment of the Authority, there has been accelerated connectivity of rural customers.
  1. Kenya Electricity Transmission Company (KETRACO)
  • KETRACO was incorporated in December 2008 as a State Corporation, 100% owned by the Government of Kenya.
  • The mandate of KETRACO is to plan, design, construct, own, operate and maintain new high voltage (132kV and above) electricity transmission infrastructure that will form the backbone of the National Transmission Grid and regional inter-connections.
  1. Kenya Nuclear Electricity Board (KNEB)
  • KNEB is tasked with defining, coordinating and implementing Kenya’s nuclear power programme which includes the development of a comprehensive legal and regulatory framework for nuclear use, evaluation of technical requirements for the programme and advocacy for nuclear use in Kenya.
  1. Independent Power Producers (IPPs)
  • IPPs are private investors in the power sector involved in generation either on a large scale or for the development of renewable energy under the Feed-in-Tariff Policy.
  • These include: IberAfrica, Tsavo, Mumias Sugar Company and the OrPower who contribute approximately 30% of electricity to the national grid as follows:
  1. Iberafrica (56 MW Thermal power plant)
  2. OrPower (48 MW Geothermal power plant)
  3. Tsavo (74 MW Thermal power plant)
  4. Mumias Sugar Company (26MW, Co-Generation)
  1. Private Distribution Companies
  • They are proposed under the Energy Act and are expected to improve the distribution function, whose sole mandate currently rests with KPLC. 
  1. Emergency Power Producers (EPPs)
  • Currently the only EPP, Aggreko has a short term supply of electricity commissioned during the prolonged drought.