Geothermal power development promotes the availability and reliance on green energy sources
across the globe thus increasing environmental sustainability through climate change mitigation.
Geothermal development in Olkaria field is part of Kenya’s efforts to transition to middle
income and newly industrialized countries by 2030. However, the projects' installations are an
example of developmental undertakings instigating conflicts with the local community over their
relocation and compensation. These conflicts escalate without proper management, yet their
dynamics are poorly understood. Numerous studies have confirmed the application of mediation
in managing conflicts over natural resources, but the effectiveness of this strategy in Kenya has
not been well established. Also, there is little review of mediation processes to enhance their use
and efficacy. This study sought to assess the role of mediation in resolving conflicts that
emanated from the implementation of Olkaria IV geothermal project. Specifically, the study
evaluated the dynamics of conflict escalation, documented the process of the Olkaria IV
mediation and appraised its role, challenges and lessons in managing the conflicts. Quantitative
and qualitative data were collected through household survey, focus groups and key informant
interviews. The study also utilized archival data. Data collected by questionnaires was analyzed
using descriptive statistics, while NVivo software was used to manage and analyze the
qualitative accounts. Results for this study indicate that the Olkaria IV project conflict was
manifested in different dimensions as follows; the socio-economic (51%), environmental (21%),
cultural (14%) and political (14%). The conflict triggers included the inadequate sharing of
information and PAPs’ participation in decision-making process in regard to project design, the
PAPs’ relocation and the compensation they would be awarded. Conflicts effects on PAPs were
ominous and managed through competition, where PAPs were pressured to pacts (31%), and
avoidance, where they involuntarily conformed (27%). Subsequent dissatisfaction resulted in
unrest that almost disrupted the project, prompting mediation. Mediation helped to neutralize
conflicts between Kenya Electricity Generating Company (KenGen), improved relationships
between KenGen and the PAPs, and among the PAPs, and improved PAPs’ livelihoods through
opportunities within Olkaria IV project and the RAPland. However, the inadequate PAPs’
knowledge, attitude, contribution and practice in the mediation; its protraction, and distrust were
the main issues that encumbered the process. The community representatives lacked a clear
pathway for information dissemination among community members. Mediation lessens suspicion
within the PAPs and increases the community' exposure to different conflict resolution
opportunities. The project planners need to include community participation in design of large
development projects to secure community buy-in, remove unrealistic pledges/expectations and
oil implementation. There is a need for adequate pre-mediation capacity building among
community representatives. A strategy for comprehensive feedback and reporting mechanism
with the community; should be created. Continuous documentation and evaluation of the
mediation process would help construction of best practices for future application. Finally, there
is a need to formulate policies for out-scaling the use of mediation as alternative dispute
resolution mechanisms in implementation of developmental projects in the country.