Could carbon projects be like that puffy 'mandazi' that you bite into and discover that it was a pocket of air? This is arguably the case, for some communities in Kenya whose high hopes for carbon credits have been dashed.
Our energy and natural resources lawyers deliver focused, innovative sector-specific advice to clients in Kenya and beyond.
We are entering an era of unprecedented demand for power generation and transmission, especially in East Africa. This dynamic, together with the challenges we all face from climate crisis, is creating new opportunities for alternative energies and new technologies.
Our energy clients receive coordinated, across-the-board coverage for their needs, including construction and projects, corporate, competition, regulatory, contractual, trading, litigation/arbitration, dispute resolution and tax issues. We understand the technical, geographical, commercial and geopolitical factors that shape the industry and have first-hand access to contacts, sponsors and decision makers.
IKM has been involved in numerous transactions pertaining to the energy sector, particularly those related to petroleum, geothermal, hydropower, solar, wind and coal. We also assist all participants in the oil and gas sector.
Experience has included advising:
- Acting for the Federal Republic of Somalia in developing a model production sharing agreement (PSA) and all supporting procedural documentation by way of a toolkit to guide the Somali Ministry of Petroleum and Natural Resources and the Somali Petroleum Authority in the management of upstream petroleum activities, and profit-sharing of the country’s petroleum resources. Our scope included preparing a model PSA meeting international standards and capacity building training to government officials, government agencies and local lawyers on the Model PSA and the negotiation manual.
- Project sponsors in two 40 MW solar power projects in Uasin Gishu County up to financial close. The projects were commissioned and are now connected to the national grid.
- A power company on the financing and development of four (4) run-of-river hydro- electric power generation projects, up to financial close.
- Lenders on the financing of 40MW solar power project in Malindi, Kenya up to financial close. The project was commissioned and is now connected to the national grid.
- Lenders on the financing of a 40MW photovoltaic power project in Kesses, Kenya up to financial close. The project was commissioned and is now connected to the national grid.
- Advising an international oil and gas exploration and development company on its rights under a production sharing contract with the Kenyan government for the acquisition of onshore exploration blocks.
- Acting for a Kenyan subsidiary of an international energy company, on its rights under three (3) production sharing contracts awarded by the Kenyan government for the acquisition of deep water and ultra-deepwater exploration blocks.
- Through ALSF, acting for the Government of Somalia in reviewing the legal framework for the oil and gas sector, draft midstream and downstream regulations, and delivering capacity building to officials at the Ministry of Petroleum and Mineral Resources.
- Acting for the Kenya National Oil Company in a due diligence review exercise in relation to the purchase of various assets from another oil company.
- Acting for a public limited liability company incorporated in the United States of America, and a leading oil and gas service company, on its establishment of a legal presence in Kenya.
- Acting for and successfully defending the Republic of Kenya in a multibillion-dollar ICSID arbitration brought by an investor in the mining sector.
- Generally advising clients in the petroleum sector on regulatory matters and compliance on a routine basis.
- Ranked Band 1 in Projects & Energy (Chambers & Partners, 2025)
- Ranked Band 1 in Banking & Finance (Chambers & Partners, 2019-2025)
- Ranked Tier 1 in Privatisation & Projects (The Legal 500, 2019-2024)
- Ranked Tier 1 in Banking, Finance and Capital Markets (The Legal 500, 2019 - 2024)
- Ranked Tier 1 in Finance & Corporate (IFLR1000, 2019-2023)
- Ranked in Projects Development (IFLR1000, 2018-2024)
- IKM and DLA Piper awarded “Transportation and Infrastructure Team of the Year” (African Legal Awards, 2016)
While Kenya is blessed with some natural resources, the country has always faced challenges in ensuring that benefits derived from these resources are shared in an equitable manner. Often, the host communities have complained that they are getting the shorter end of the stick.
It has been unsettling to hear reports that January 2024 was the hottest January on record and the earth’s temperature in the year leading up to end of January 2024 rose by more than 1.5C. If global warming is accelerating, then efforts to address it require similar momentum.
Thanks to new renewable power projects coming online, Kenya’s generation capacity now exceeds 3,000 MW. This success is partly attributable to investments from Independent Power Producers.