Agricultural waste could reduce Kenya’s fossil fuel dependence, but policy gaps and imported biofuels are threatening the nascent industry.
NAIROBI—Kenya’s biomethane sector should have been a straightforward win. Agricultural waste is abundant across the country, and a monthly fossil fuel import bill nearing KSh 77.5 billion ($500 million) creates a clear economic case for renewable gas. Converting organic matter into energy promises to boost both energy security and environmental sustainability.
Yet three years after the government launched its National Bioenergy Strategy, the sector’s promise remains largely unfulfilled. Early optimism has given way to uncertainty as cheap imported biofuels, some of dubious origin, flood the market. Local producers struggle to compete, raising doubts about Kenya’s ability to meet renewable energy targets.
The stakes are high. Kenya spends about KSh 930 billion ($6 billion) annually on fossil fuel imports, draining foreign exchange and exposing the economy to volatile global prices. Despite generating 90% of electricity from renewables, the country relies heavily on imported petroleum for transport and industry. Biomethane offers an untapped path to self-sufficiency.
Agricultural abundance meets energy scarcity
Kenya’s farms produce vast quantities of organic waste ideal for biomethane. The country’s 4.4 million goats, one million cattle, and extensive crop cultivation generate millions of tonnes of manure and crop residues each year. Research indicates that residues from maize, tea, sugarcane, and other staples could produce significant energy through anaerobic digestion.
About 21,000 biogas digesters operate in Kenya, mostly small household units. Between 2009 and 2018, the Kenya National Domestic Biogas Programme, supported by donors, installed over 18,000 digesters. This represents a small fraction of potential. Across Sub-Saharan Africa, biogas digesters could serve 18.5 million households, yet deployment remains limited.
Biomethane production offers benefits beyond energy. Anaerobic digestion produces nutrient-rich fertilizer, reducing reliance on chemical inputs. It also captures methane that would otherwise escape from decomposing waste, helping Kenya meet its pledge to cut greenhouse gas emissions by 32% by 2030.
“Our tea farm has almost doubled in productivity since we use the biofertilizer,” said Risper Bett, a farmer in Kericho County who installed a biodigester in 2018. Her household now cooks with biogas and applies the residue to crops, eliminating her previous reliance on firewood and commercial fertilizers.
Policy ambitions outpace implementation
Kenya’s 2020-2027 Bioenergy Strategy set ambitious targets. The government aims for universal access to clean cooking by 2028, a critical goal since 69% of households still rely on firewood or charcoal. The strategy also envisions biomethane as a fuel for vehicles and industrial use.
Progress has been slow. Kenya has 2.8 MW of anaerobic digestion capacity using agricultural waste, a modest figure relative to potential. Investment in large-scale biomethane plants capable of feeding distribution networks remains limited, with most projects still in planning phases.
Financing is a major hurdle. Household biodigesters cost KES 77,500 to 124,000 ($500 to $800), unaffordable for many without subsidies or credit. Commercial facilities require millions in capital, deterring private investment without clear regulations or guaranteed offtake agreements.
In 2023, Kenya’s clean energy sector attracted KES 496 billion ($3.2 billion) in investment, but biomethane received only a small fraction. Most funds flowed to solar, wind, and geothermal projects with established revenue streams.
Imported biofuels undermine local production
The biggest threat comes from imported biofuels of uncertain sustainability. Hydrogenated vegetable oil, palm oil mill effluent, and used cooking oil arrive from Indonesia, Malaysia, and China, undercutting local biomethane despite concerns over production methods.
Kenya mandates that oil companies blend biofuels into diesel and petrol, using certificates to track compliance. Imported fuels receive bonus credits, giving them a pricing advantage. In 2023, extra credits for hydrogenated vegetable oil collapsed local biomethane prices, making domestic production unprofitable. A functional market in 2022 became unsustainable in months.
European regulators are increasingly skeptical of Asian biofuels. Germany suspended purchases from Asia, and the European Commission proposed suspending recognition of International Sustainability and Carbon Certification for waste-based biofuels. Surges in palm oil mill effluent and waste cooking oil have raised concerns that virgin palm oil linked to deforestation is being mislabelled as waste.
Kenya continues to accept these imports without thorough verification. Government tenders prioritize low fuel costs over local renewable development, rewarding questionable imports and penalizing domestic producers.
Lessons from the region
Kenya’s challenges mirror wider trends in Sub-Saharan Africa. Decades of investment have left hundreds of failed or abandoned biogas projects due to technical issues, inadequate maintenance, and weak economic viability.
Biogas consumption in Africa could reach more than 3 million tonnes of oil equivalent by 2040, still only a fraction of the potential. The International Energy Agency estimates universal clean cooking and rural electrification could triple demand, with over 100 million Africans potentially using biogas.
Successful examples exist. South Africa’s AgriGas initiative produces biomethane from energy crops on rehabilitated mining land. Morocco has developed 33,800 square meters of biogas capacity, producing 21.6 million cubic meters annually. Even modest African plants can be viable with proper frameworks.
Kenya has the technical expertise. Universities conduct research, engineers are skilled, and companies like Sistema.bio have deployed thousands of affordable biodigesters using results-based financing. What is missing is cohesive policy to create market demand while shielding domestic producers from unfair competition.
Reforming market structure
Industry experts call for regulatory reform. A renewable heat obligation requiring a share of renewable gas in heating would provide investor certainty. Transport fuel obligations with strict sustainability verification would ensure fair competition.
Government procurement could create stable demand. State-owned entities like Kenya Power, Kenya Pipeline Company, Kenya Railways, and county governments use substantial energy volumes. Requiring them to buy verified biomethane would anchor domestic markets.
Financing mechanisms must expand beyond grants. Wind and solar sectors thrived with feed-in tariffs and auction systems guaranteeing revenue. Biomethane needs similar long-term price certainty via power purchase agreements or guaranteed offtake.
Grid connection policies also require reform. Producers need reasonable, non-contestable access, standardized technical requirements, and faster approvals. Current administrative hurdles discourage facilities that could serve wider markets.
Political will is key
Kenya has the feedstock, technical know-how, and economic rationale to grow the sector. Farmers could benefit from diversified income, improved waste management, and lower input costs. The economy could reduce import dependence and boost energy security.
Progress is blocked by policy gaps, weak enforcement of sustainability standards, and the easy option of cheap imports. Breaking this pattern requires government leadership that prioritizes long-term strategy over short-term fuel prices.
The Ministry of Energy acknowledges the problem, but concrete regulations are awaited. Without action, Kenya risks repeating Africa’s familiar cycle: initial excitement followed by projects that fail commercially.
Time remains to reverse course. Kenya’s 2030 climate targets, universal clean cooking goals, and energy independence ambitions are achievable. But unlocking biomethane requires moving from strategy to implementation, establishing regulatory frameworks, financing tools, and market protections.
The organic waste on Kenya’s farms represents stored solar energy waiting to be harnessed. Whether it becomes a source of prosperity or remains untapped depends on decisions in the coming months. Building digesters, injection facilities, and distribution networks takes years, and further delay narrows the window for capturing what should have been an obvious opportunity.
By Staff Writer
