GLOBAL - A decision by the United Kingdom to award a landmark contract for its first small modular reactors (SMRs) to a domestic firm has ignited a diplomatic rift with the United States, sending ripples through the global energy sector. The move, which prioritises British-based Rolls-Royce SMR, has significant implications for nations like Kenya that are actively developing their own nuclear energy programmes and closely monitoring the evolving technology and geopolitical landscape.

The UK government, under Prime Minister Keir Starmer, announced on Thursday, 13 November 2025, that it will invest £2.5 billion to build three SMRs at the Wylfa site in Anglesey, Wales. Each reactor, designed by Rolls-Royce, is capable of generating 470 megawatts of power, enough to power approximately one million homes. The decision is a cornerstone of the UK's strategy to enhance energy security and achieve its decarbonisation targets, while aiming to create a major new export industry.

However, the announcement drew a sharp rebuke from Washington. US Ambassador Warren Stephens stated his government was “extremely disappointed” with the decision, arguing that American firm Westinghouse Electric Company offered “cheaper, faster and already approved options.” This public criticism from a key ally underscores the high stakes in the burgeoning global SMR market, which is projected to be worth hundreds of billions of dollars by 2050. Key global players in the SMR market include companies from the US, China, Russia, and France, all vying for international contracts.

The Kenyan Context: A New Nuclear Frontier

For Kenya, this international dynamic is more than a distant headline. The country is pursuing its own nuclear power programme as a key enabler of the Vision 2030 development blueprint, which aims to secure a stable and affordable energy supply for industrialisation. The Nuclear Power and Energy Agency (NuPEA), the state body managing this ambition, has laid out a strategic plan to commission the nation's first nuclear power plant by 2034. Construction is targeted to begin as early as 2027, with coastal counties like Kilifi and Kwale, as well as Siaya County, identified as potential locations for a 1,000 MW facility.

Kenya has already made significant strides, advancing to Phase 2 of the International Atomic Energy Agency's (IAEA) Milestone Approach, indicating readiness to engage with vendors and sign contracts. A recent IAEA review praised the country for establishing a “comprehensive regulatory framework” for nuclear and radiation safety, a critical step toward realising the project.

Why SMRs Could Be a Game-Changer for Kenya

The technology at the heart of the UK-US dispute—Small Modular Reactors—is particularly relevant for emerging economies. Unlike traditional large-scale nuclear plants that are immensely expensive and can take over a decade to build, SMRs offer a different value proposition. Their key advantages include:

• Lower Upfront Costs: SMRs are designed to be manufactured in factories and assembled on-site, which can significantly reduce construction time and capital expenditure. This makes financing more accessible for countries without massive state budgets.
• Scalability: The modular nature allows for incremental additions to generating capacity, matching supply with growing demand more effectively than a single, large-scale plant. NuPEA has explicitly stated Kenya's interest in SMR technology, potentially starting with a 300MW plant that can be scaled up.
• Siting Flexibility: Their smaller footprint and reduced cooling water requirements mean SMRs can be deployed in a wider range of locations, including remote regions or areas with limited grid infrastructure.

The global competition, exemplified by the UK-US spat, could ultimately benefit newcomer nations like Kenya. As American, British, French, Russian, and Chinese firms compete for market share, they may offer more attractive financing, technology transfer, and training packages to secure contracts. Westinghouse, for instance, promotes its AP300 SMR as a readily deployable solution based on proven technology, a pitch it will likely make to other potential clients after the UK setback. This competitive environment provides Kenya with strategic options as it moves towards selecting a vendor for its nuclear programme.

While Kenya's energy mix is already dominated by renewables like geothermal and hydropower, the government views nuclear power as essential for providing reliable baseload electricity to power its economic ambitions. The developments in the UK serve as a crucial, real-time case study on the technology, economics, and geopolitics that will shape Kenya's path as it prepares to join the nuclear age.