NAIROBI — Kenyan manufacturers are calling on the government to offer tax breaks and financial support for companies investing in clean energy. They say such incentives are vital to ease the heavy costs that come with moving away from fossil fuels.
Tobias Alando, CEO of the Kenya Association of Manufacturers (KAM), told reporters that regulatory certainty and targeted incentives are crucial. “Investors need regulatory predictability. We also need incentives for local green manufacturing and targeted financing mechanisms like green credit guarantees and tax relief for clean production investments,” he said.
The government has set ambitious goals: a full green transition by 2030, including universal access to clean cooking and renewable electricity. But meeting these targets will require clear policies and close collaboration between the public and private sectors, according to Alando.
Power costs remain a major hurdle. Many manufacturers say the high price of electricity undercuts their competitiveness both locally and abroad.
“It is no longer enough to retrofit lighting or optimise boilers; we must power entire industrial parks with renewable energy, adopt circular economy solutions, and embed sustainability into the DNA of our manufacturing systems,” said Genesio Mugo, KAM’s Energy, Electrical, and Electronics Sector Chair.
Mugo also pointed out that Kenya’s 7.4 million small and medium enterprises many led by women face steep tariffs, limited access to green finance, and a lack of technical support, all of which slow progress.
The calls for support came during the 11th Clean Energy Expo and Conference in Nairobi, where industry leaders discussed ways to accelerate Kenya’s shift to a low-carbon economy.
Despite the challenges, many remain hopeful that with the right government backing, the private sector can drive meaningful change.
