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Kenya’s energy sector has emerged among best regulated markets in Africa according to the latest Energy Regulatory Index by the African Development Bank (AfDB).
Kenya received a score of 0.8915 behind Senegal which registered a score of 0.8920 in the ERI 2024 after reporting an improvement of 26pc and 28pc respectively. Uganda was ranked third with a score of 0.8546.
AfDB says the improvements by the countries signal standout progress in tariff reform, regulatory outcomes, and utility performance.
The countries were rated the best in Regulatory Governance Index, Regulatory Substance Index and Regulatory Outcome Index among 43 countries who participate in the ERI.
“The 2024 ERI shows that Africa’s regulators are stepping up. We are now seeing stronger institutions delivering real results for utilities and consumers. This shift is critical if we are to achieve Mission 300 and connect 300 million people to electricity by 2030,” said Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth.
The ERI is a diagnostic and policy tool used by governments, regulators, and development partners to identify gaps, track progress, and prioritize reform efforts.
The index is being backed to help accelerate electricity investment in Africa which currently faces financing gap $25 billion annually and improve access to an estimated 595 million people who still lack electricity access.
“The ERI 2024 tells a hopeful story. African countries are not just passing laws—they are implementing them. Regulators are transforming from administrative bodies into strategic institutions with measurable influence. However, challenges related to independence, financing, and enforcement persist,” added Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at the Bank Group.
The 2024 edition incorporates extensive feedback from utilities, regulators, and regional energy bodies.
The governance index covers legal and institutional setup while substance covers implementation of policies and regulations. outcomes index on the other hand covers impact on utilities and consumers.
