Regulations take lead in Kenya’s green energy sector

Kenya is positioning itself as a hub for green hydrogen production by designating hydrogen manufacturing plants as Special Economic Zones (SEZ) to attract investment and provide tax breaks. The Energy and Petroleum Regulatory Authority (EPRA) has formulated guidelines to make green hydrogen technology attractive to investors. This will help in replacing imported ammonia-based fertilizer and methanol with locally produced alternatives. Also, the country has abundant renewable energy sources such as geothermal, wind, and solar power, which will support green hydrogen production.

• The hydrogen sector investments could leverage from the existing pipeline infrastructure. The agricultural boom also will be a pillar to support the growth of the hydrogen sector. 

• Such development will cause some market shifts and competition. The great potential of hydrogen's  energy and ammonia production could shake Ethiopia’s energy generation as well as Uganda’s hydrogen fertilizer production in the future. (Read more…)

• Green hydrogen production sites in Kenya will benefit from a 10-year withholding tax holiday, 100% investment deduction allowance over 20 years, etc.

• 86% of Kenya’s power is generated from renewable sources.

In the next 4 years, Kenya is targeting to reduce imported ammonia fertilizer and methanol by 20% and 100% respectively.