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Energy and Natural Resources

Our energy and natural resources lawyers deliver to our clients the focused, innovative sector advice they need, 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:

  • The sponsors of a USD1.8 billion energy project on the development of a 100 MW wind power plant in Kajiado, Kenya
  • Senior lenders on the development and construction of a 140 MW geothermal power plant and related facilities in the Rift Valley region in Kenya and the sale of capacity and energy to the Kenya Power and Lighting Company
  • 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 on-shore exploration blocks
  • Government of Kenya in a multibillion investment arbitration proceedings filed by Cortec Mining Kenya Limited at the International Centre for Settlement of Investment Disputes (ICSID)
  • The government of an East African country on its oil and gas operations
  • The senior lenders on a 981 MW coal-fired power plant in Lamu County, Kenya
  • An international company on a grant of concessions over coal mines in Kenya
  • The receivers appointed in respect of the sale of wind turbine generators and other assets from a company
  • The sponsors on the financing of two 40 MW solar power projects
  • Ranked Tier 1 in Projects & Privatization (The Legal 500 2019)
  • Ranked Band 2 in Projects & Energy (Chambers & Partners 2019)
  • Ranked in Projects & Finance (IFLR1000)

Why power companies are struggling in Africa

Having concluded in Part 1 of this two part series, that the power sector challenges are like a tangled ball of wool, allow us to pick some threads out and take a closer look at some of the pieces of the puzzle.

Power play: Align demand, cost of electricity in Kenya

Having followed with great interest the ongoing debate on the power sector, fuelled by the thought-provoking articles written by Edward Njoroge and Jaindi Kisero recently, we would like to join the fray with some points to ponder.

Corporate PPAs: New buzzword for power solutions in East Africa?

Force Majeure was one of the biggest concepts up for discussion in 2020. In 2021, the term ‘corporate PPA’ is earning its pride of place as one of the new buzz words for the power and energy sectors in the region, with sector players critically looking at how these types of arrangements can be used to address some of the cost and supply challenges facing the region.

How grid defection may disrupt the utility monopoly in the Kenyan energy sector

In November 2020, the Energy and Petroleum Regulatory Authority (EPRA) approved an increase in electricity tariffs for consumers. It is no secret that high costs of power coupled with occasional reliability issues have forced some of the large industrial consumers, who account for approximately 54.8 percent of Kenya Power’s sales revenues, back to the drawing board in a bid to find a sustainable, affordable and reliable solution for their energy needs.