Moi family’s Sosian Energy loses geothermal license in Kenya

Key Points

• The Moi family’s energy venture faces setbacks despite previous strides in Kenya’s renewable energy sector.
• Kenya’s High Court revokes Sosian Energy’s drilling license for Menengai Geothermal Project, halting exploration and drilling operations.
• Court ruling follows local residents’ concerns over environmental risks and inadequate consultation by Sosian Energy.

The Moi family, recognized as Kenya’s second-largest landowners and one of the country’s richest and most influential families, has encountered a setback. The family’s energy company, Sosian Energy, has been ordered to cease drilling operations at the Menengai Geothermal Project following a Kenyan court’s decision to revoke its exploration and drilling license.

The decision came on March 17, when High Court Judge Milicent Odeny ruled that the company’s Environmental Impact Assessment (EIA) license—issued by the National Environment Management Authority (NEMA)—was invalid.

“NEMA’s decision granting Sosian Energy Limited an Environmental Impact Assessment Licence No. NEMA/EIA/PSL/1003 is hereby set aside and License cancelled,” Justice Odeny declared, dealing a significant blow to Sosian Energy, the only Kenyan-owned company involved in geothermal development at Menengai.

Kenya court halts Sosian drilling plans

The license had allowed the company to drill thermal gradient holes and exploration wells up to 2.7 kilometers deep in Nakuru County. But local residents had raised concerns from the start. Back in 2021, members of the Menengai West Stakeholders Forum filed a petition claiming they had not been properly consulted before the project began.

They called for Sosian’s permit to be revoked and pushed for a fresh, more thorough environmental review. While the National Environment Tribunal dismissed their petition in 2023, it did direct the company to carry out a Climate Impact Assessment within two years—a move that acknowledged the depth of public concern.

Still dissatisfied, the residents took their case to the Environment and Lands Court. This time, they highlighted not just procedural issues, but deeper worries about the risks of drilling so close to homes and farmland—pointing to potential air pollution, noise, and vibrations that could affect daily life.

Sosian Energy argued that it had engaged with the community through meetings and forums. But the court ruled that the efforts fell short. Justice Odeny ordered a new Environmental and Social Impact Assessment, with a clear directive: affected communities must be fully informed and given a chance to provide feedback before any further drilling can go ahead.

Kenya’s Moi family navigates new challenges

This is the latest challenge for the Moi family, who remain one of Kenya’s largest landowners, second only to the Kenyatta family. Their property portfolio stretches across nearly 300,000 acres of land nationwide. They also have strong ties to the media industry, with a controlling stake in Standard Media Group—owner of KTN, several newspapers, and radio stations.

Estimates in the local press suggest the family’s net worth exceeds $3 billion. In 2021, they sold a 51 percent stake in Siginon Aviation to National Aviation Services for Ksh1.7 billion ($15.2 million), although they kept a 12 percent share in the wider Siginon Group.

In June 2023, Sosian Energy made strides in Kenya’s renewable energy sector, connecting 22 megawatts of clean energy to the national grid. Their commitment to providing more affordable electricity than the state-owned KenGen has been widely praised, benefiting both households and businesses by helping lower energy costs.

However, the recent court ruling could put a halt to these advancements. What was once seen as a promising clean energy project now faces delays and growing scrutiny. Concerns have emerged over the potential impact on local communities and the environment as Kenya continues its efforts to expand its energy infrastructure.