By: Wojtek Piorko - managing director for Africa at Vertiv

As analysts expect Kenya’s economy to continue growing at a moderate pace in 2026, it remains critical to deal with certain domestic challenges to maximise potential growth and prosperity. These include high energy costs and power outages that can slow vital Kenyan operations and limit output, thereby having a negative effect on manufacturing and production, and the economy in general. 

According to the African Business Chamber (AfBC), a business platform dedicated to facilitating trade, investment and strategic partnerships across the continent, Kenya’s economy benefits from a relatively stable macroeconomic and political environment, a growing middle class, and its status as a regional gateway for trade between Africa and global markets. The AfBC notes: “Strategic investments in digital infrastructure, green energy, and value chains combined with prudent fiscal management can position Kenya for inclusive growth and a transition to higher income status.”

At the same time, Kenya’s economic growth has benefited from improvements in electricity supply, although concerns around reliability persist. In early December 2025, Kenya Power, the country’s primary electricity provider, announced that a new peak demand had been recorded, driven by new connections, increased industrial activity and improved system efficiency.

This perspective is echoed by the Kenyan Institute of Economic Affairs (IEA), which notes: “Energy, which includes electricity, has been identified as one of the enablers of economic growth. Specifically, Chapter Two of ‘Kenya’s Vision 2030’ classifies energy under the foundations for socio-economic transformation, and as one of the infrastructural enablers of the pillars of the Vision. In the last 25 years since 2000, electricity generation has experienced both significant expansion in quantum and variety of sources driven partly by growing demand and climate change concerns. However, reliability remains a major concern.”

Adding to this, as of a report in late 2024, the Sollay Kenyan Foundation noted: “Around 90% of the country’s energy comes from renewable sources, particularly geothermal, hydroelectric, and wind power. The country’s Olkaria Geothermal Plant is one of the largest geothermal facilities in the world. However, despite these advancements, approximately 16% of the population still lacks access to reliable electricity. Many rural areas depend on traditional fuels like firewood and charcoal, which can be unsustainable and hazardous to health. The distribution of energy resources remains uneven, with rural regions bearing the brunt of energy scarcity.”

Building on these realities, new thinking and approaches can help to address these long-standing challenges. Part of the solution could lie in harnessing the power of renewable energy in the form of Battery Energy Storage Systems (BESS) in combination with Kenya’s unique position as a top global geothermal power producer, creating a compelling renewable energy ‘double hit’.

Tapping into the immense power of the Earth itself

According to the International Monetary Fund (IMF), Kenya is uniquely positioned with its energy situation in that the geothermal industry has the potential to power much of the country. 

Kenya is located on the volcanically active Great Rift Valley, a tectonic boundary where the Earth’s crust is pulling apart, thereby bringing magma and intense heat close to the surface, and allowing underground water to heat up into steam, which can then be tapped for power. This geological setting provides a consistent, cost-effective and clean source of renewable geothermal power, making Kenya a global leader in geothermal energy production. 

The IMF notes that on average, engineers around the world need to drill down about 3,000 to 4,000 metres to make a geothermal well, but some wells in Kenya are only 900 metres deep, affording the country a distinct advantage. Nonetheless, Kenyan geothermal companies are still required to pay significant up-front costs to become viable energy producers. 

Kenya has pledged to keep developing this geothermal capacity and move to 100 percent clean energy by 2030. According to the IMF, the government estimates there is 10,000 MW of untapped geothermal energy, enough to power Kenya’s current peak demand five times. Indeed, geothermal energy can provide reliable, round-the-clock baseload power, making it a valuable addition within a diversified, resilient energy mix.

For the country’s broader long-term growth, structural constraints such as power instability and energy affordability must be addressed. Improved energy reliability allows industries to operate more efficiently and predictably, thereby reducing operational costs over time. In addition, battery systems could improve energy access in remote industrial areas, further contributing to the economy overall as well as improving the lives of an under-served section of its population.

How BESS can support Kenya’s clean energy journey and economy

Vertiv’s BESS solutions can help Kenya to continue its renewable energy journey. By integrating geothermal power with BESS technology, industries can further enhance flexibility and value within a multi-technology energy system. 

A BESS solution stores electricity in rechargeable batteries, which is then released as needed for later use, providing reliable support during grid disruptions and enabling greater operational continuity. This is especially useful for industrial users with variable loads, such as data centres and manufacturing facilities – noting that manufacturing plays a key role in the Kenyan economy, where it accounts for over 11% of formal employment and contributes more than 7% to the country’s GDP.

With BESS technology, large banks of batteries can supplement power during peak operating periods or outages, something that is particularly useful for industrial operations in remote locations. A BESS solution additionally supports vital safety systems, ventilation and other essential machinery. 

Vertiv™ EnergyCore Grid is a BESS solution that supports power stability and energy flexibility to enhance reliable operation for demanding commercial and industrial applications. Providing scalable energy storage building blocks, the solution delivers from 4MW to +100MW of power output and is available with an optional integrated energy management system that provides intelligent controls, enabling ancillary services. Organisations gain greater control over how conventional and renewable energy is captured, stored and used. 

The need for energy reliability 

The availability of geothermal energy is allowing Kenya and a number of other African countries to start designing energy systems that are ready to power the future. The technology is both innovative and renewable, and its potential should be maximised.

As outlined by the IEA: “The greatest concern for the electricity sub-sector in Kenya is not the amount of electricity generated. In fact, electricity supply already exceeds demand. However, despite the oversupply, electricity from renewables is insufficient to meet the peak demand, which suggests unreliability.” 

Vertiv proposes that the strategic addition of BESS technology into Kenya’s energy mix could assist with such challenges, helping to manage the inherent variability of renewable energy generation, strengthen grid reliability and support broader industrial and economic growth.