Kenya’s Power Company Plans to Add 253 Megawatts as Demand Climbs

Kenya

Kenya’s principal electricity producer, the Kenya Electricity Generating Company, said Thursday that it plans to increase its generating capacity by 253 megawatts over the next few years to keep pace with surging demand for power across the country. The announcement comes as peak consumption continues to break records, driven by industrial growth, urban expansion and greater household electrification.

The company, known as KenGen, said that mid-January peak demand reached 2,444.4 megawatts, up from about 2,316 megawatts a year earlier, underscoring the pressure on Kenya’s power grid as more businesses and consumers come online.

In a statement, KenGen outlined a suite of projects that together will add the planned capacity, including the rehabilitation of the Olkaria I geothermal plant, a new solar installation and expansions at multiple hydropower and wellhead generation facilities.

The expansion roadmap features the 63-megawatt overhaul of Olkaria I, expected to be commissioned by the end of 2026; the 42.5-megawatt Seven Forks floating solar project; the 80-megawatt Olkaria VII geothermal station; and nearly 60 megawatts of power from leased wellhead units. Smaller hydro upgrades, including an increase at the Gogo plant from 2 megawatts to 8.6 megawatts, are also part of the pipeline.

Energy analysts said the mix of projects reflects a strategic shift toward renewable sources that have anchored Kenya’s grid in recent years. Hydropower and geothermal energy already supply much of the country’s electricity, helping limit blackouts even as demand peaks climb to record levels.

Despite the gains in output, KenGen reported on Thursday that its net profit for the half-year ending December 2025 fell by more than 25%, compared with the same period a year earlier. The company attributed the decline to lower financial income and increased tax obligations, even as revenue rose on higher electricity sales to the national grid.

Executives said the investments in capacity are intended not only to meet near-term demand growth but also to support Kenya’s long-term industrial ambitions and export prospects. With more reliable and abundant power, industries from manufacturing to technology stand to benefit from fewer interruptions and lower energy costs, they said.

KenGen’s strategy comes against the backdrop of broader regional efforts to develop cleaner, more resilient energy systems across East Africa, where economies are striving to balance rapid development with climate commitments.