How can the Dutch private sector catalyze investment to develop business in the Kenyan energy sector?
This project developed a comprehensive analysis of the energy sector in Kenya, as well highlights opportunities and barriers for the Dutch business community to invest and trade in this particular market. Special attention has been given to opportunities for the Dutch business community in the short, medium and longer term (2015-2025). The results and analysis of this project have been disseminated during a large conference and roundtable sessions in March 2015 in The Hague, the Netherlands.
Kenya is an exciting country when it comes to energy investment possibilities. The country is well endowed with wind and solar resources, and has many proven geothermal sources. The discovery of oil and gas and the presence of hard coal allow for a diversified energy mix in the long run. In order to expand its energy generation capacity and meet rising demand, Kenya is in need of Foreign Direct Investment (FDI).
The main conclusions drawn from this project can be summarised as follows:
- The Dutch business community can play a role of importance in the Kenyan energy sector, as virtually all energy carriers are well represented in the Dutch sector with the most promising energy carriers being, in the short term, wind energy, solar and biomass. Energy efficiency has an enormous untapped potential as there is a knowledge gap in Kenya;
- As the implementation of an (national) energy policy and effective policy instruments are lagging behind, the Dutch consultancy sector can assist the Government of Kenya (GoK) in creating a responsive and positive business climate;
- In order for EKN to be a successful market player in the Kenyan energy sector, it is recommended to build a dedicated business development team (fronting the Dutch business community), to continuously monitor the Kenyan business environment, to build or take part in a business platform and to develop a strategic (business) plan for a targeted set of identified areas in the energy sector.