Kenya and Senegal Top AfDB's 2024 Electricity Regulatory Index for Africa

Kenya and Senegal have emerged as continental leaders in electricity sector regulation, jointly clinching the top spot in the African Development Bank’s (AfDB) 2024 Electricity Regulatory Index (ERI). Released at the Africa Energy Forum held in Cape Town, the report underscores sweeping improvements in energy governance and regulatory effectiveness across the African continent, offering a hopeful outlook for electrification goals and utility performance.

A Landmark Report for Africa’s Power Sector

Now in its seventh edition, the Electricity Regulatory Index (ERI) is the African continent’s premier tool for assessing national electricity regulatory environments. The 2024 report evaluates 43 African countries using three main metrics:

1. Regulatory Governance Index (RGI) – measures legal and institutional frameworks.

2. Regulatory Substance Index (RSI) – examines quality of policies and practices.

3. Regulatory Outcomes Index (ROI) – evaluates the real-world effectiveness and service delivery of utilities.

The 2024 ERI reveals an across-the-board improvement in regulatory strength, especially in ROI, signaling that reforms are not just conceptual but are now yielding measurable results in electricity access, affordability, and reliability.

Kenya and Senegal: Model Performers

Kenya and Senegal shared the top ERI score of 0.892, propelled by:

• Successful tariff reform implementation

• Robust regulatory outcomes

• High-performing utilities

This performance reflects years of targeted reforms, institutional strengthening, and proactive policy implementation aimed at making electricity access both equitable and sustainable.

Joining them in the top five were Uganda, Liberia, and Niger—with Niger achieving one of the largest leaps forward, thanks to sustained political commitment and policy execution.

Continental Progress in Numbers

The ERI 2024 presents a picture of accelerated regulatory evolution:

• 41 out of 43 countries scored above 0.5 in the RGI, compared to just 24 in 2022.

• The number of low performers (below 0.5) dropped from 19 in 2022 to 6 in 2024.

• Even the lowest-scoring country tripled its score, rising from ~0.10 to 0.33.

• The average ROI jumped from 0.40 in 2022 to 0.62 in 2024, reflecting tangible improvements in utility operations and customer service delivery.

According to Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth:

“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.”

For the First Time: Regional Regulatory Bodies Assessed

In a pioneering move, ERI 2024 includes an assessment of regional regulatory institutions, recognizing their increasing role in:

• Harmonizing cross-border technical standards

• Facilitating regional electricity trade

• Shaping integrated energy markets

This addition acknowledges the growing importance of regional energy integration in achieving energy security and resilience.

Fueling Mission 300 and National Energy Compacts

The ERI is central to the AfDB’s Mission 300 initiative, which aims to connect 300 million Africans to electricity by 2030. Insights from the ERI directly inform the design and implementation of National Energy Compacts, already active in 12 countries, with 20 more in development. These compacts are collaborative agreements aligning national governments, development partners, and private investors toward shared electrification goals.

Bridging Persistent Gaps: What Still Needs to Be Done

Despite the promising progress, the report outlines ongoing challenges, especially around:

• Regulatory independence

• Financial sustainability of utilities

• Integration of off-grid and mini-grid solutions

The ERI advocates for deepened economic regulation through cost-reflective tariff methodologies, greater stakeholder engagement, and predictable regulatory processes to foster investment and trust.

Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulation at AfDB, summarized:

“African countries are not just passing laws—they are implementing them. Regulators are transforming into strategic institutions with measurable influence. However, independence, financing, and enforcement gaps must still be addressed.”

A Tool for Reform and Progress

Since its launch in 2018, the ERI has served as both a diagnostic and policy roadmap, helping governments and partners:

• Identify sectoral weaknesses

• Track reform implementation

• Prioritize technical and financial support

The 2024 edition incorporates feedback from regulators, utilities, and regional energy bodies, enhancing its applicability as a reference guide for driving inclusive energy sector development.

As Africa intensifies efforts to close the electricity access gap, the 2024 ERI confirms that regulatory reforms are working—and that stronger governance is the linchpin of electrification success. With Kenya and Senegal lighting the way, other countries now have a roadmap for building resilient, transparent, and high-performing energy systems fit for a rapidly transforming continent.