KenGen to add 1,500MW of power to grid in Sh560b financing plan

KenGen engineers at geothermal wells in Olkaria Naivasha. [Antony Gitonga, Standard]

KenGen has announced an ambitious ten year programme plan to double the country’s electricity production at a cost of more than Sh560 billion (USD4.3 billion).

Under the 2024-34 strategic plan, the electricity generation company will pump an extra 1,500MW into the national grid with half of it coming from geothermal energy.

Currently the country’s installed power capacity stands at 1726MW with geothermal contributing 754mw, wind 25MW, thermal 120MW and hydro 826MW.

KenGen Managing Director Peter Njenga said power demand was on the rise on a daily basis and hence the need to invest in production.

Eng Njenga announced that KenGen would invest USD 4.3 billion in the period to add the extra 1500MW of green energy to the national grid  as well as establish 500MW hours of storage to help stabilise power transmission.

“This exercise requires USD4.3 billion and of the total power produced, 800mw will come from geothermal and we are working with donors and development partners to meet this,” he said.

He revealed that the ongoing rehabilitation of the Olkaria I power plant in Naivasha was expected to boost Kengen’s generating capacity from the current 43MW to 63MW.
 “A Chinese firm is undertaking the works and the plant that will be up and running by 2026 and we are targeting an extra 60mw from Muhoroni power plant by April 2025,” he said.

The MD disclosed that KenGen was undertaking a diversification strategy by helping neighboring countries of Zambia, Eswatini, Djibouti and Ethiopia in geothermal exploration.
 He said the diversification strategy would add an extra USD2 billion to the company within the next ten years which will boost its economic contribution to the government.

Njenga said that the company has established a green energy park within the Olkaria where investors would tap 100 per cent of their energy needs to power their industries.
 He revealed that the efforts were geared towards assuring investors of steady and affordable power supply, ensure competitive power tariffs and lower cost of electricity for consumers.

At the same time Njenga assured the country of continued supply of electricity from hydro-dams despite that harsh weather and depressed rains in the coming months.
“Despite the harsh weather, water levels in our dams are very safe and the country will continue to get supply of cheap electricity from our hydro-dams,” he said.

KenGen's board chair Frank Konuche said the strategic plan was in line with the company's commitments to expand power generation to wind and solar sources and stabilize regional energy security.

“Currently our geothermal fields are about to be fully exploited and we are working with the Ministry of Energy so that we can acquire extra land for more power,” he said.