As a result of the World Bank heralded reforms of the 1980s and the need to address the cost and availability of electric power in Kenya, the country’s power sector has undergone significant restructuring. The key objectives of the reforms have been to attract private sector investors and to improve competitiveness and overall efficiency of the sector. This article reviews the reforms so far carried out in the Kenyan power sector and whether the reforms have facilitated the development and implementation of Clean Development Mechanism (CDM) renewable energy projects in Kenya. The article also draws some conclusions from the power sector reform experiences in Kenya.