Kenya And Senegal Lead Africa In Power Regulation, Says AfDB’s 2024 Index.
Kenya and Senegal have emerged as joint leaders in Africa’s energy regulation landscape, topping the African Development Bank’s (AfDB) 2024 Electricity Regulatory Index (ERI), according to a report from Africa Business Communities. The index, unveiled at the Africa Energy Forum in Cape Town on 20 June 2025, evaluates the regulatory frameworks of 43 African countries, highlighting the remarkable progress of both nations in power sector governance, transparency, and efficiency.
The 2024 ERI, which benchmarks regulatory performance across three pillars—Regulatory Governance, Regulatory Substance, and Regulatory Outcomes—awarded Kenya and Senegal an impressive score of 0.892, a significant leap from Kenya’s 0.695 in 2022. Kenya’s ascent from fifth place in 2022 to joint first is attributed to transformative reforms led by the Energy and Petroleum Regulatory Authority (EPRA). These include digitised licensing processes, streamlined regulations to reduce red tape, and the introduction of Time-of-Use tariffs to balance grid demand. Senegal, meanwhile, has bolstered its standing through the Energy Sector Regulatory Commission (CRSE), which has enhanced regulatory independence and transparency since its establishment in 2021.
“Kenya and Senegal are showing the rest of Africa what forward-looking regulation can achieve,” said Dr Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. “This is critical to reaching our goal of connecting 300 million people to electricity by 2030.” The AfDB’s Mission 300, launched with the World Bank, aims to bridge the continent’s energy access gap, and robust regulation is seen as a cornerstone of this ambition.
The report also notes broader progress across Africa, with 41 of the 43 participating countries scoring above 0.5 in regulatory governance, up from 24 in 2022. Even lower-ranked nations improved, with scores rising from 0.10 in 2022 to over 0.33 in 2024. Uganda, Liberia, and Niger rounded out the top five, reflecting a growing wave of regulatory reform, particularly in East Africa.
Kenya’s advancements have spurred economic benefits, including over 200 new jobs in renewable energy and smart grid sectors, according to the EPRA 2023–2024 report. The country is also pioneering regulations for green hydrogen and electric vehicle infrastructure, positioning it as a hub for sustainable energy innovation. Senegal, meanwhile, is emerging as a West African leader in integrating hydro, solar, and biomass energy, attracting climate-aligned investments.
However, challenges remain. In Kenya, rising electricity prices and legal disputes over land charges could see Nairobi’s power costs increase by up to 30%, potentially offsetting some gains. Despite these hurdles, the AfDB’s report paints an optimistic picture, with the continent’s average ERI score rising to 0.668 in 2024 from 0.456 in 2021, driven by reforms informed by previous ERI recommendations.
The ERI 2024 also assessed regional regulatory bodies for the first time, recognising their role in harmonising standards and enabling cross-border electricity trade. With the AfDB’s $12.7 billion investment in electricity access between 2016 and 2025 connecting 28 million Africans, the focus on regulation is proving vital for sustainable development.
As Kenya and Senegal set the pace, their achievements signal a new era of energy governance in Africa, paving the way for increased investment, job creation, and progress towards universal energy access.
