Kenya is gearing up to invest Ksh 130 billion in developing green hydrogen, aiming to revolutionize its energy and industrial sectors while advancing sustainability goals. Energy and Petroleum Cabinet Secretary Opiyo Wandayi revealed that the government plans to leverage green hydrogen technology to increase fertilizer and ethanol production, as well as decarbonize the road transport sector.
Green hydrogen is produced using renewable electricity, making it a cleaner alternative to conventional grey hydrogen derived from fossil fuels. Its adoption is seen as a crucial step towards reducing greenhouse gas emissions and combating climate change.
The East African region, including Kenya, requires approximately Ksh 1.2 trillion to develop and operationalize green hydrogen plants. This significant investment highlights the scale of infrastructure and technological development needed to harness green hydrogen’s potential effectively.
Wandayi emphasized the importance of regional collaboration among East African Community (EAC) member states. Energy leaders from the bloc are actively calling for partnerships to finance and implement green hydrogen projects, viewing joint efforts as essential for pooling resources, expertise, and market access. The Kenyan government is therefore seeking private equity and enhanced regional cooperation to meet the funding needs within the next five years.
In a boost to these ambitions, the German government has pledged Ksh 17 billion in concessional financing and grants to support the construction of a 100-megawatt green hydrogen plant in Kenya. This injection of capital underlines international confidence in Kenya’s green energy roadmap.
Kenya is also part of a select group of four African countries that have applied for a total of Ksh 40 billion in grants designed to support the growth of green hydrogen markets across the continent. These funds are expected to accelerate research, development, and commercialization of green hydrogen technologies.
The move towards green hydrogen positions Kenya as a regional leader in clean energy innovation. By mobilizing significant investment and fostering regional cooperation, Kenya aims not only to reduce its carbon footprint but also to boost industrial productivity and create sustainable jobs in the emerging green economy.
