OVERVIEW: A Feed-in-Tariff (FiT) is an instrument for promoting generation of electricity from renewable energy sources. A Feed-in-Tariff allows power producers to sell renewable energy generated electricity to an Off-taker at a pre-determined tariff for a given period of time. Renewable energy sources in Kenya include wind power, biomass, small hydro, solar, biogas and geothermal.

The objectives of the FiTs system are to: Facilitate resource mobilization by providing investment security and market stability for investors in electricity generation from renewable energy sources, Reduce transaction and administrative costs and delays associated with the conventional procurement processes and encourage private investors to operate their power plants prudently and efficiently so as to maximize returns.