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The Internet of Things (IoT) is a transformative technology, which is revolutionizing our everyday life by connecting everyone and everything together. The massive number of devices are preferably connected wirelessly because of the easy installment and flexible deployment. However, the broadcast nature of the wireless medium makes the information accessible to everyone including malicious users, which should hence be protected by encryption. Unfortunately, the secure and efficient provision of cryptographic keys for low-cost IoT devices is challenging; weak keys have resulted in severe security breaches, as evidenced by numerous notorious cyberattacks. This paper provides a comprehensive survey of lightweight security solutions conceived for IoT, relying on key generation from wireless channels. We first introduce the key generation fundamentals and protocols. We then examine how to apply this emerging technique to secure IoT and demonstrate that key generation relying on the randomness of wireless channels is eminently suitable for IoT. This paper reviews the extensive research efforts in the areas of theoretical modelling, simulation based validation and experimental exploration. We finally discuss the hurdles and challenges that key generation is facing and suggest future work to make key generation a reliable and secure solution to safeguard the IoT.