Kenya offers one of the world’s cleanest power systems, with more than 90% of its electricity generated from renewable sources, giving manufacturers an immediate low-carbon advantage.
As the country prepares to host the Kenya International Investment Conference (KIICO 2026, March 25–27), this green grid is emerging as a clear global competitive differentiator.
In this interview with The Kenyan Wall Street, Dr. Juma Mukhwana, Principal Secretary for Industry, explains how the government is leveraging Kenya’s renewable energy leadership to accelerate industrial growth and attract climate-aligned manufacturing investment.
Q: Kenya is often described as having one of the world’s greenest grids. Why does this matter for manufacturing now?
Dr. Mukhwana: According to the KNBS Economic Survey, over 90% of Kenya’s electricity is generated from renewable sources, placing the country among a small group globally with a low-carbon grid at scale. As decarbonization pressures and policies such as the the European Union Carbon Border Adjustment Mechanism (EU CBAM) influence manufacturing sites selection, Kenya’s energy mix allows manufacturers to reduce embedded emissions immediately, strengthening export competitiveness and future-proofing supply chains.
Taking place at the Radisson Blu Upper Hill on March 25, 2026, the 4th Kenya International Investment Conference (KIICO) 2026 is set to be the largest and most impactful investment promotion conference in Kenya’s history.
Q: Can you break down Kenya’s renewable energy mix and its relevance for industry?
Dr. Mukhwana: Kenya’s mix is anchored by geothermal at about 45%, which provides reliable baseload power essential for industrial operations. Hydropower contributes roughly a quarter of supply, while wind -including large-scale projects such as Lake Turkana and solar are expanding quickly. This diversified renewable base improves grid stability and supports both light and energy-intensive manufacturing.
Q: How is Kenya converting this energy advantage into an industrial strategy?
Dr. Mukhwana: We are aligning energy expansion with industrial planning through incentives in SEZs and EPZs, development of green industrial parks near renewable energy corridors and reforms that simplify investor entry. The objective is to position Kenya not just as a manufacturing destination, but as a carbon-competitive manufacturing hub.
Q: Which green industrial initiatives demonstrate this strategy in practice?
Dr. Mukhwana: Key initiatives include the KenGen Green Energy Park in Olkaria, the North Rift Green Industrial Park in Baringo, Dongo Kundu SEZ supporting port-led manufacturing, the Tana River Delta Green Heartland for sustainable agro-processing and eco-designed industrial zones in Athi River. These projects translate renewable energy advantage into investable industrial infrastructure.
Q: Are you seeing measurable investor traction linked to this strategy?
Dr. Mukhwana: Yes. Investment facilitation momentum is strong. In 2025, investment facilitation surpassed the USD 1 billion milestone, with total investments facilitated reaching about USD 1.785 billion according to the data compiled by invest Kenya. More than 35,800 jobs were supported. This reflects growing investor confidence in Kenya’s green industrial proposition which is translating to growth in our economy.
In the leadup to KIICO 2026, InvestKenya is launching a new one-stop-shop digital portal that allows foreign investors and companies the ability to seamlessly obtain all the documentation, information, approvals, work permits, etc. necessary to conduct business in Kenya.
Q: Which value chains present the strongest opportunity for net-zero manufacturing?
Dr. Mukhwana: Priority sectors include textiles and apparel, leather and footwear, agro-processing, pharmaceuticals and green mobility. Sector packs developed for investors including textiles, leather, BPO and e-mobility are helping translate these opportunities into actionable investment pathways.
Q: How are global decarbonization rules influencing investor decisions?
Dr. Mukhwana: Investors now evaluate carbon intensity alongside cost and logistics. Producing in a low-carbon grid reduces compliance risk under CBAM and corporate net-zero commitments. Kenya therefore lowers transition costs and improves long-term competitiveness for export-oriented manufacturers.
Q: What should global manufacturers expect over the next three to five years?
Dr. Mukhwana: Investors looking at Kenya should expect continued renewable expansion across geothermal, wind and solar, accelerated development of green industrial parks and stronger investor facilitation through digital one-stop systems.
Importantly, Kenya is working toward a 10 GW installed capacity target by 2032, providing long-term energy certainty for industrial investors. Manufacturing competitiveness is shifting from cost alone to resilience, sustainability and regulatory readiness. Kenya offers a location where companies can scale production while meeting climate commitments, managing regulatory risk and strengthening supply-chain resilience.
Q: What role does the Kenya International Investment Conference KIICO play in advancing Kenya’s net-zero manufacturing agenda?
A: KIICO is a strategic platform that connects policy, projects and investors around Kenya’s industrial transformation priorities including green manufacturing. It provides visibility into bankable opportunities such as geothermal-linked industrial parks, SEZ developments and sector-specific value chains.
By bringing together government, global investors and industry leaders, KIICO accelerates deal-making and partnerships while showcasing how Kenya’s renewable grid, reform agenda and industrial infrastructure translate into a pipeline of climate-aligned manufacturing opportunities.
Related:
InvestKenya Announces the Upcoming Kenya International Investment Conference 2026
US$75 Trillion Access, $2 Billion A Day Target at KIICO 2026
