Kenya has been ranked the second-best regulated electricity market in Africa, according to the 2024 Energy Regulatory Index (ERI) released by the African Development Bank (AfDB).
The report places Kenya just behind Senegal, with a score of 0.8915 compared to Senegal’s 0.8920. Uganda followed in third place with a score of 0.8546. The ranking evaluated 43 African countries and assessed regulatory performance based on governance, substance, and outcomes.
Kenya showed significant progress in regulatory reforms and efficiency. The country recorded a 26% improvement compared to the previous index. The ERI highlights Kenya’s strides in tariff reform, institutional governance, and positive impact on consumers and utility service delivery.
“The 2024 ERI shows that Africa’s regulators are stepping up. We are now seeing stronger institutions delivering real results for utilities and consumers,” said Dr. Kevin Kariuki of the African Development Bank. “This shift is critical if we are to achieve Mission 300 and connect 300 million people to electricity by 2030.”
The Energy Regulatory Index serves as a benchmark for governments, regulators, and development partners to measure progress and identify gaps in regulatory frameworks. The 2024 edition includes data and feedback from utility companies, regional energy bodies, and national regulators.
Kenya ranked highly across the three ERI pillars:
- Regulatory Governance Index: Assessed legal and institutional foundations.
- Regulatory Substance Index: Measured how well regulatory policies are implemented.
- Regulatory Outcome Index: Evaluated how policies affect utilities and consumers.
AfDB Director Wale Shonibare said, “The ERI 2024 tells a hopeful story. African countries are not just passing laws—they are implementing them. Regulators are transforming into institutions with real influence. However, issues around independence, funding, and enforcement still need attention.”
The AfDB sees the ERI as a tool to spur investment in Africa’s energy sector. The continent still faces a $25 billion annual financing gap and an estimated 595 million people without electricity.
The report confirms Kenya’s position as a leader in regulatory reforms, even as it continues to address challenges in energy access and affordability.
