Kenya's energy goals could be jeopardised by foreign treaty, say experts

Nearly 25 per cent of Kenya's population lacks reliable electricity, despite progress in expanding access and enhancing renewable energy capacity.

This is according to experts who say that Kenya's energy goals are threatened by foreign treaty issues.

The government aims to boost generation capacity to 5,000 MW by 2030. However, the country’s membership in the Energy Charter Treaty (ECT) poses risks to these efforts.

Critics argue that the ECT, designed to protect foreign investments, contains vague provisions that allow multinational corporations to sue governments for lost profits due to policy changes.

 This could hinder Kenya's ability to implement necessary climate actions. For instance, if Kenya phases out fossil fuels, it may face multimillion-dollar lawsuits from investors claiming financial losses.

The ECT's Investor-State Dispute Settlement (ISDS) mechanism raises alarm due to record compensation awards that could drain public resources. Developing countries like Kenya often lack the financial capacity to absorb such legal costs.

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 This creates a risk of increased reliance on fossil fuels, threatening the country's commitment to renewable energy as outlined in its Vision 2030 agenda.

“We are deeply concerned about Kenya's membership in the ECT, which prioritises multinational corporations' interests over those of its citizens,” said Susan Otieno, Executive Director of ActionAid Kenya.

She noted that the lack of transparency in the treaty-making process further excludes local communities and jeopardises their rights.

“The government must reconsider its commitment to the ECT and focus on treaties that promote sustainable development and empower local communities,” she added.

The Deputy Vice Chairperson of Trade, Industry and Cooperatives and MP for Aldai stressed the importance of prioritising the interests of ordinary Kenyans in energy policy decisions.

“We must ensure that our energy framework serves the needs of our people and reflects our commitment to sustainability,” she asserted.

As Kenya strives to become a leader in renewable energy, it faces the challenge of balancing foreign investment with the needs of its citizens and the environment.

Experts suggest that the government must carefully reconsider its involvement with the ECT, focusing on fostering a sustainable energy future that prioritises the welfare of its people.

This includes ensuring public scrutiny of investment treaties and safeguarding against exploitative clauses.