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Cabinet approves Sh2.47 trillion energy investment plan to connect 5.1 million households by 2030

The initiative is aimed at extending power supply to underserved communities, supporting enterprise growth and creating opportunities for industrial development and employment.

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PHOTO/PCS
Prime Cabinet Secretary Musalia Mudavadi during a cabinet meeting held at State House, Nairobi, on October 9, 2026 — PHOTO/PCS

The Cabinet has adopted the Kenya National Energy Compact, a major investment plan seeking to mobilise approximately Sh2.47 trillion to expand electricity access and connect an additional 5.1 million households by 2030.

The initiative is aimed at extending power supply to underserved communities, supporting enterprise growth and creating opportunities for industrial development and employment.

According to the Cabinet announcement, the plan will mobilise an estimated USD 19 billion in investment to expand access to electricity, a move expected to support economic activities and improve energy access across the country.

The adoption of the compact signals the government’s intention to accelerate electrification while strengthening the role of energy in driving business growth and industrial development.

The government said the initiative would “expand power access to underserved communities, support enterprise growth and create opportunities for industrial development and employment.”

The additional 5.1 million household connections targeted by 2030 form a central component of the plan. However, the Cabinet announcement did not specify how the connections would be distributed across counties or outline the implementation timeline for individual projects.

It also did not provide a breakdown of the investment by funding source or identify the specific institutions expected to finance the programme.

Alongside the electricity expansion plan, the Cabinet endorsed a separate USD8.8 million programme to promote electric cooking in four counties.

The programme, valued at approximately Sh1.1 billion, will support the uptake of 100,000 electric cooking appliances in Nairobi, Kiambu, Machakos and Kajiado counties.

The initiative is intended to encourage households to adopt cleaner cooking methods, reduce exposure to harmful smoke and accelerate the transition to modern energy.

“The Cabinet-endorsed initiative will promote cleaner cooking, reduce household exposure to harmful smoke and accelerate the transition to modern energy,” the announcement said.

The programme places electric cooking at the centre of efforts to improve household energy use, particularly by encouraging the adoption of appliances that rely on electricity rather than traditional cooking fuels.

The targeted distribution of 100,000 appliances is expected to support the transition in the four counties, although the announcement did not specify the eligibility criteria for beneficiaries or how the appliances would be distributed.

The government also did not indicate when the electric cooking programme would begin or the period within which the targeted appliances would be taken up.

The two initiatives address different aspects of the country’s energy needs: expanding electricity connections to millions of households and promoting the use of electricity for cooking.

The National Energy Compact is focused on mobilising large-scale investment to extend electricity access, while the smaller electric cooking programme seeks to encourage households to use electricity for domestic purposes.

The government expects the broader investment plan to support industrial development, enterprise growth and job creation as more households gain access to electricity.

However, achieving the 2030 target will depend on the implementation of the compact and the mobilisation of the proposed investment.

The Cabinet announcement did not provide details on the specific infrastructure projects, funding arrangements or progress-monitoring mechanisms that will guide implementation.

The adoption of the compact nevertheless establishes the government’s stated target of connecting an additional 5.1 million households by 2030,alongside efforts to expand the use of electricity for cleaner cooking in Nairobi, Kiambu, Machakos and Kajiado counties.

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