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Green growth path to Kenya's economic gain
Steam venting at a geothermal power generation plant in Olkaria, Kenya.
With its abundant natural resources, such as wildlife, arable land and geothermal steam, Kenya has a big opportunity in green growth.
For the country to thrive sustainably —whether in energy, agriculture or other vital sectors—progress will be contingent on tackling policy and investment challenges while drawing lessons from nations that have successfully walked similar paths.
Green growth is more than a temporary trend; it’s an essential pathway to the future. Like many other countries, Kenya is experiencing climate change effects that constrain growth in critical sectors like agriculture, tourism and energy. The UN Environment Programme has warned that if climate-related challenges remain unaddressed, Kenya’s economy could suffer losses equivalent to 3 per cent of its GDP by 2030.
Costa Rica's shift to renewable energy—it sources over 99 per cent of its electricity from clean sources—has reduced reliance on fossil fuels and attracted environmentally-conscious investors. Kenya could follow such a path. Kenya has vast untapped geothermal potential even though it is an African leader in the area. If initiatives to expand the production of geothermal energy are implemented, Kenya will reduce power costs and position the country as a prime destination for green investment.
Resource-efficient farming
Thanks to resource-efficient farming practices that maximise output while using minimal resources, the Netherlands is an excellent example of sustainable agriculture. Climate-smart techniques such as drip irrigation and hydroponics have the potential to change Kenya's agriculture sector.
Kenya has made major strides on renewable energy resources with wind and geothermal power. Yet, for Kenya to remain a continent's leader in renewable clean energy, it needs to prioritise the expansion of clean energy to underserved regions. The promotion of solar and wind-powered mini grids, which can deliver affordable electricity to those areas, could be one way to do that.
The recent Energy (Net-Metering) Regulations 2024 present an opportunity for a decentralised energy system. The regulations allow individuals and businesses to offload excess energy into the grid and, in return, receive credits to offset their electricity bills. In South Africa, net metering has supported solar adoption to mitigate power shortages. Net metering in Kenya will give an opportunity to tap into abundant solar resources, create jobs and enhance energy security while promoting environmental sustainability.
Though transitioning to a green economy is promising, challenges such as the need for capital investment and inconsistent policy enforcement exist. Despite the obstacles, Kenya can build a resilient and sustainable economy by balancing economic progress with environmental responsibility, drawing on successful global models.
Mr Njoroge is a development economist.
