Powering Sustainable Agricultural Growth: The Impact of Renewable Energy Consumption on Kenya’s Agriculture Sector

Abstract

This study examines the impact of renewable energy consumption on Kenya’s agricultural sector from 1987 to 2023 using an ARDL model. Results reveal that renewable energy exerts initially negative but significant positive effects on agricultural output with lags of three to six years, reflecting the time required for irrigation, mechanization and storage systems to enhance productivity. Non-renewable energy shows negative short-term but positive lagged impacts, highlighting cost and efficiency trade-offs. Labour contributes positively in the short run but displays delayed negative effects, while gross capital formation displays mixed outcomes, indicating timing and efficiency challenges. The ECM model indicates a rapid adjustment toward long-run equilibrium by correcting 71.7% of disequilibrium annually. The F-Bounds testing confirms a stable long-run association and the diagnostic checks, normality, heteroskedasticity, serial correlation and CUSUM tests support the model’s robustness and reliability. The results of this study emphasize that the adoption of renewable energy delivers substantial delayed gains in agricultural growth and productivity, thereby emphasizing the need for sustained investment, proper implementation and maintenance of renewable energy infrastructure to drive and accelerate sustainable sectoral growth in Kenya while ensuring environmental preservation at the same time. This study therefore recommends aligning of Kenya’s agricultural energy transition with the Sustainable Development and Ecological modernization frameworks by integrating decentralized renewable energy systems into Vision 2030 and rural electrification interventions so as to boost productivity, resilience and environmental sustainability.