Kenya clinches Sh709m contract to drill geothermal wells in Djibouti

Kenya Electricity Generating Company (KenGen) has clinched a deal to drill geothermal wells in Djibouti, increasing its regional presence after it secured similar contracts in Ethiopia.

The power producer yesterday said it had signed a $6.45 million (Sh709.8 million) contract with Djibouti’s Office of Geothermal Energy Development (ODDEG).

The deal is key for KenGen, which has been keen on diversifying its revenue streams.

The two entities signed the contract at a ceremony yesterday in Galla Le Koma, Djibouti, that was attended by Energy Cabinet Secretary Charles Keter and KenGen Chief Executive Rebecca Miano.

Keter assured Djibouti of support in enabling it to realise its geothermal potential, noting that Kenya has made strides in the area, as well as gained expertise over the years it has been developing geothermal power.

“To date, we have drilled more than 300 wells within the Olkaria field, which is the bedrock of Kenya’s geothermal energy production,” he said.

KenGen MD Rebecca Miano (L) and Dr. Kayad Moussa Ahmed, General Manager, ODDEG

KenGen has recently embarked on a diversification strategy, leveraging on its expertise in geothermal energy by offering commercial drilling services.

Miano said the company’s strategic plan is to grow its footprint in the region.

“It is our desire that in the next couple of years, we shall have considerable presence in countries within the continent,” she said.

“It is also worth noting that we are not only keen on increasing our presence in Africa, but also enhancing energy capacities across the region.”

This is the third geothermal drilling contract that KenGen has won in Africa.

In 2019, the company secured two deals worth a total of Sh13.2 billion to drill wells in Ethiopia.