Economy
UK-Kenya Renewable Energy Conference
Kenya’s renewable energy sector is on the cusp of big things. With a Government committed to a 5000Mw plan by 2017; an established feed-in-tariff; and an increasing demand for electricity as industrialisation continues at pace, the conditions are set for geothermal, wind and solar power to take off in a big way.
Two main forces are driving this change.
First is the enviable economic growth that Kenya has enjoyed in recent years, and is forecast to maintain in the future.
Rapid economic growth will drive greater demand for power: from businesses, to produce goods and services; and from consumers as they buy more TVs, fridges, freezers and other goods.
Kenya already has a renewable-rich energy mix, and is looking to continue this.
The second driver is that global climate change policy is stimulating increased take up of renewable energy around the world. This is leading to extraordinary and enormous economies of scale and efficiencies.
Last year the Paris climate negotiations sent a clear message to the world – to governments, to businesses, investors and citizens – that the future is low carbon. It created a surge in market demand for renewable energy.
You would expect rising demand to drive prices up. But technology and innovation are doing the opposite, so increasing demand further. In the world of computers we’re familiar with Moore’s law: namely that processing speeds for computers will double every two years, with prices falling. We’re seeing something similar in renewables. 30 years ago, wind turbines were generally rated around 50kw. 15 years ago we were getting used to 2000kw (2Mw) turbines. Now, in the North Sea, we’re expecting 8Mw monsters offshore.
Prices are falling similarly: solar panels now make up less than half the cost of the average PV installation. My Deputy High Commissioner is still fuming at the £13,000 he paid to put 4kw on his roof in 2011 – something that might now cost only £5,000. Offshore wind costs are another example of this. The UK agreed a strike price of £140 per Mw/hour for offshore wind as recently as 2014. In the Netherlands the most recent auction saw suppliers coming forward to supply offshore wind for just £70 per Mw/hour.
As a result of these changes, the UK now has three times more offshore wind – over 5000 Mw – than the entire generating capacity of the Kenyan grid. UK installed solar capacity – and let’s face it, the UK isn’t a sunny country – is over 10Gw – a 1400% increase on as recent as 2011.
As innovation pushes costs down, the implications for Kenya are clear. Renewables will not simply be environmentally beneficial, but economically advantageous. In time, they will push out hydrocarbons.
The UK and Kenya are together at the vanguard of this renewable energy, clean technology and innovation revolution. Kenya has one of the most active renewable energy sectors in Africa – second only to South Africa in terms of investment. The UK is a global leader in many of the sectors for which Kenya has greatest demand, as well as leading the way in innovative new technology such as wave power, tidal stream, pump storage and grid-scale flow batteries.
Kenya has set ambitious targets to boost its energy mix as part of the Energy Pillar in Vision 2030. As it continues to strive with regional competitors like Ethiopia, it wants to keep energy costs down. Renewables will enable this. And UK companies should be at the heart of this. From project development to design, finance and investment, legal and security, R&D and consulting; to grid development, transmission and distribution – UK companies have the expertise to help Kenya achieve success.
The energy market of tomorrow will – and must – look fundamentally different to yesterday. Out goes an industry dominated by giant utilities; a monopoly of centralised energy models. In comes a new, diverse market; driven by innovation, with an entrepreneurial, dynamic set of market participants. Put simply, new actors, new investors, new technology.
Let me say something about how all this connects to Kenya’s development agenda, of which the UK is such a strong supporter. A reliable electricity supply is one of the most powerful tools for helping people lift themselves out of poverty. Yet two out of three people in Sub-Saharan Africa are currently living without electricity access.
Twenty years ago, there was a nine month wait in Kenya for a monopoly provided land telephone line. Then Safaricom arrived on the scene. In just ten years we have seen a total transformation of the way in which Kenyans communicate – the mobile revolution. Now we need – and I am convinced that we will see – a similar revolution in access to affordable clean energy over the next ten years.
This will require governments, investors and aid agencies to tear down regulatory barriers and attract new finance. It will require us to develop markets where lower costs for renewable energy filter through to consumers because of genuine competition between suppliers.
The private sector has an opportunity to show the way in turning development challenges into business opportunities. A few years ago, seed funding from UK Aid working with Vodaphone and Safaricom helped create a mobile payment platform called M-PESA. Today that platform processes nearly half of Kenyan GDP, and means three in four Kenyans have access to the financial system.
This is the kind of country where those transformational things can be done. Let’s work together to make them happen.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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