Kenya has just taken a decisive step that every serious investor and business leader should pay attention to. In May 2024, the Energy and Petroleum Regulatory Authority (EPRA) officially published Kenya's Guidelines on Green Hydrogen and Its Derivatives — a comprehensive regulatory framework that opens the door to one of the most exciting industries of the next decade.
At KCCCI, we believe this is not just a policy development. It is a commercial opportunity — and it is happening right now, right here in Kenya.
"Green hydrogen is poised to play a significant role in Kenya's energy transition, leapfrogging the country's clean industrial development and contributing to socioeconomic development."
What Is Green Hydrogen — And Why Does It Matter?
Green hydrogen is produced by splitting water into hydrogen and oxygen using electricity generated entirely from renewable sources — solar, wind, geothermal, hydro, tidal, or biomass. The result is a clean fuel with zero or near-zero carbon emissions, making it one of the most promising solutions for decarbonising industries that simply cannot run on electricity alone: shipping, aviation, heavy manufacturing, steel, and fertiliser production.
Kenya is near perfectly placed to lead this industry. With nearly 100% renewable electricity generation already in place, a strategic location connecting East Africa to global markets, and now a clear regulatory roadmap, the country has every foundational advantage. The question is who among our business community will move first.
The Two-Phase National Strategy
The government's Green Hydrogen Strategy and Roadmap, launched at the Africa Climate Summit in September 2023, lays out an ambitious two-phase plan running through 2032.
Building the Foundation
2023–2027: Focus on domestic demand and early commercial projects. Target: replace 20% of imported ammonia-based fertiliser (~100,000 tonnes/year) and 100% of imported methanol (5,000+ tonnes/year) with local production.
2027Scaling to Export Markets
2028–2032: Regional and global export focus. Target: substitute 50% of imported fertiliser (300,000–400,000 tonnes/year) and explore international markets for green hydrogen and its derivatives.
2032This is not a distant aspiration. Phase I is already underway, and the regulatory machinery to support it — including a dedicated Green Hydrogen Secretariat acting as a one-stop shop for project approval — is operational today.
Where Are the Business Opportunities?
The green hydrogen value chain is broad. Multiple commercial entry points exist across production, transformation, transport, and end-use markets. Here are the segments our members should be evaluating:
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Fertiliser & Agriculture Kenya currently imports hundreds of thousands of tonnes of ammonia-based fertiliser annually. Green ammonia produced locally can substitute this directly — reducing costs, cutting import dependency, and creating local manufacturing jobs.
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Transport & Logistics Hydrogen fuel cells for heavy trucks, buses, and rail are commercially proven. As Kenya's fleet modernises, businesses offering hydrogen refuelling infrastructure and fuel supply will have first-mover advantage.
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Aviation & Shipping Synthetic fuels derived from green hydrogen are the only viable low-carbon option for long-haul aviation and maritime shipping. Nairobi's position as a continental aviation hub makes this especially relevant.
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Power Generation & Storage Green hydrogen can store surplus renewable energy and release it as power during peak demand — a valuable grid-stabilisation service as Kenya expands its renewable capacity.
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Industrial & Manufacturing Steel, chemicals, and refineries are hard to decarbonise with electricity alone. Green hydrogen offers an industrial feedstock that meets global emissions requirements — opening export markets for locally produced goods.
What the Incentives Look Like
One of the most compelling aspects of this opportunity is the fiscal environment Kenya has created for green hydrogen investors. Both Export Processing Zones (EPZs) and Special Economic Zones (SEZs) offer substantial incentive packages:
🏆 Key Investor Incentives Available Now
How the Approval Process Works
The guidelines establish a clear, time-bound process for developers. It begins with an Expression of Interest (EoI) submitted to the Ministry of Energy and Petroleum, accompanied by a pre-feasibility study. The Secretariat evaluates applications on a first-come, first-served basis, and the ministry must respond in writing within 60 days. Approved developers then have 24 months to complete a detailed feasibility study covering resource assessments, technical design, environmental and social impact, financing, and risk management.
Critically, the guidelines also define what qualifies as green hydrogen from a sustainability standpoint — including the carbon intensity threshold (no more than 1.0 kgCO₂e per kg of hydrogen produced) and three flexible options for renewable electricity supply: a captive plant, direct grid supply where at least 80% is renewable, or power wheeling via a purchase agreement.
Kenya's Competitive Advantage Is Real
It is worth pausing on just how strong Kenya's starting position is. Nearly 100% of the national grid already runs on renewable energy. Geothermal resources in the Rift Valley, abundant solar irradiation, and significant wind potential give Kenya a cost advantage over most other potential green hydrogen producers. Add to this the country's established logistics infrastructure, its role as the commercial gateway to East and Central Africa, and membership in the Africa Continental Free Trade Area, COMESA, and the East African Community — and the export case becomes very compelling indeed.
Global demand for green hydrogen and its derivatives is projected to grow dramatically through the 2030s as Europe, Japan, South Korea, and the Gulf states seek to decarbonise their economies. Kenya's 2032 export target is not ambitious; it is conservative.
What KCCCI Members Should Do Now
Whether you are a large manufacturer, an agri-business importing fertiliser, a logistics company managing a fuel-heavy fleet, an energy developer, or a financial services provider looking for the next major financing opportunity — green hydrogen touches your sector.
We encourage every member to begin by understanding the guidelines in full, identifying where green hydrogen intersects with your current supply chain or business model, and engaging with the Kenya Green Hydrogen Secretariat to understand how your organisation might participate — whether as a developer, off-taker, financier, or service provider.
KCCCI will be hosting briefings and facilitating introductions to relevant government agencies for members interested in exploring this space. This is exactly the kind of transformative, long-horizon opportunity that we exist to help our members navigate early and well.
