Kenya’s energy sector experienced significant shifts in 2024, shaped by falling global oil prices, rising petroleum re-exports, increased domestic demand for cleaner fuels, and a strong pivot towards renewable energy sources, according to the latest Economic Survey 2025.
Global crude oil prices declined for the second straight year due to oversupply from non-OPEC producers and weakened global demand.
The OPEC reference basket averaged USD 79.86 per barrel in 2024, down from USD 82.98 in 2023.
This drop, coupled with a stronger Kenyan Shilling, contributed to an 8.1% reduction in the national petroleum import bill, which stood at Sh 575.5 billion.
Despite the price drop, Kenya’s petroleum imports rose by 20.9% to 5.2 million tonnes, driven by increasing local demand and expanded storage capacity.
At the same time, petroleum exports more than tripled to 995.4 thousand tonnes, largely due to heightened re-exports of petroleum fuels to neighboring countries.
Domestic demand for petroleum products grew by 2.0%, also totaling 5.2 million tonnes in 2024.
Notable consumption patterns include: Jet fuel/turbo fuel demand rose 9.9% to 735.5 thousand tonnes, Aviation spirit surged 69.2% to 2.2 thousand tonnes, LPG (Liquefied Petroleum Gas) consumption increased 13.6% to 414.9 thousand tonnes, Kerosene usage declined sharply by 33.3% to 36.7 thousand tonnes.
Retail prices for petroleum products generally decreased, with premium motor spirit and light diesel falling by 1.4% and 1.1%, respectively. However, the 13 Kg LPG cylinder price rose by 6.6%, averaging KSh 3,188.34, reflecting supply constraints and rising global demand.
Electricity: Growth in Generation, Decline in Capacity
The total installed electricity capacity slightly declined from 3,243.6 MW in 2023 to 3,235.5 MW in 2024 due to the expiry of power purchase agreements and lower output from some thermal plants. Nonetheless, total electricity generation and imports increased by 5.1%, reaching 14,101.9 GWh.
Hydropower generation rose 36.2%, aided by favorable rainfall.
Electricity imports jumped 66.7% to 1,532.6 GWh, primarily from Ethiopia.
Renewables accounted for 91.1% of domestic generation, led by: Geothermal (44.2%), Hydro (28.9%), Wind (14.3%), Solar (3.7%).
Thermal oil, the only non-renewable source, made up 8.9% of the energy mix.
The rise of e-mobility in 2024 introduced electric-powered vehicles, creating a new electricity demand of 2.8 GWh.
Overall, 2,804,336.1 terajoules (TJ) of energy were supplied, with 49.4% sourced directly from the environment.
Households dominated consumption at 93.6%, largely relying on firewood.
Access to electricity continued to expand, with the number of rural electrification connections rising by 6.1% to 2,349,340 households in the 2023/24 fiscal year.
As Kenya continues to diversify its energy sources and modernize its infrastructure, the 2024 figures reflect a country adapting to global market dynamics while advancing domestic sustainability goals.
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