Kenya’s renewable energy transition and local manufacturing challenge
Kenya’s renewable energy sectors have expanded rapidly over the past decade, with solar and wind playing an increasingly important role in electricity access, grid stability, and the country’s climate commitments. Solar capacity has grown significantly since 2015, while major wind projects, including Lake Turkana and Kipeto, have helped position wind energy as a key part of Kenya’s power mix.
This paper, Kenya Solar and Wind Manufacturing in the Renewable Energy Transition: Global Production Networks and Local Realities, examines whether this transition is also creating deeper industrial, employment, and social benefits within Kenya.
Import dependence and limited value capture
Using a Global Production Networks framework, the paper shows that Kenya remains largely positioned in lower-value parts of solar and wind production. High-value manufacturing, research and development, and core component production remain concentrated in countries such as China, Denmark, Germany, Europe more broadly, and the United States.
Kenyan firms are primarily active in distribution, assembly, Engineering, Procurement and Construction contracting, installation, civil works, and operations and maintenance. While these activities are important, they limit opportunities for technological upgrading, domestic manufacturing growth, and long-term value capture.
Work, gender, and social upgrading
The paper also highlights the conditions under which workers contribute to Kenya’s renewable energy transition. Employment is often temporary, project-based, and low-skilled, with limited access to formal contracts, social protection, or pathways into higher-quality technical roles. Women remain underrepresented in technical and installation work, despite policy commitments to improve gender equity in the energy sector.
Building a more transformative transition
The paper argues that Kenya’s renewable energy transition will only deliver stronger economic and social outcomes if it moves beyond downstream assembly and installation. This requires coordinated industrial policy, enforceable local content requirements, technology transfer, patient capital, stronger public institutions, expanded green skills training, and decent work standards.
A more just and developmental renewable energy transition must ensure that local firms, workers, and communities gain greater bargaining power and a fairer share of the benefits created through Kenya’s solar and wind sectors.