Cabinet gives nod for 80MW geothermal power plant
Business
By
Antony Gitonga
| Aug 05, 2025
Plans to phase out thermal power have received a major boost after the government approved the construction of Olkaria VII Geothermal Power, which will pump an extra 80.3 megawatts (MW) into the national grid.
The multi-billion-shilling project is a collaboration between the governments of Kenya and Japan and the European Investment Bank, with a projected completion by 2027.
The Cabinet has approved the project, which will be undertaken by state power producer KenGen. The plant is expected to tap into 19 geothermal production wells.
"The Cabinet has approved the construction of Olkaria VII Geothermal Power Project by KenGen, and the project is expected to inject 80.3MW into the national grid by June 2027," said KenGen in a statement.
The electricity generating company said the country's annual power demand has risen by approximately 100MW, with the uptake of electric vehicles (EVs) projected to require 334MW by 2032.
READ MORE
Why Kenya feels like 1895 all over again
Government push for disability inclusion
Groups raise concerns over Tobacco Bill
Why Ruto, Ouattara meeting is important for Kenya and Ivory Coast
Ruto hosts African leaders at State House ahead of summit
Bill for two decades of failure by football officials is now due
Amsons Group pledges Sh4.5b for hospitals
Governor Waiguru banks on street lights to power Kirinyaga's 24hr economy
Governor Nassir launches construction of Kongowea Level 4 Hospital
"The country's industrial strategy anticipates a need for over 1,000MW in additional capacity within the same period, and the new power plant will come in handy to address the deficit," said KenGen.
Chief Executive Peter Njenga, speaking recently during the launch of the firm's 10-year strategic plan, said it includes pumping an extra 1,500MW into the national grid.
Eng Njenga said of the total amount, 800MW would be sourced from geothermal energy as the company gears towards increasing renewable energy while phasing out thermals.
"We are committed to supplying steady and reliable base load power to light our homes and drive Kenya's industrialisation," he said.
"In our 10-year G2G strategy, we are working to deliver 1,500MW of electricity all from renewable sources, including geothermal, hydro, wind and solar," he said earlier during the launch of the strategy.
Eng Njenga added that the power-generating company plans to invest in a 500-hour storage system, targeting power from solar and wind energy.
"This exercise requires $4.3 billion (Sh554.7 billion), and we are working with donors and development partners so that we can increase our installed capacity, which stands at 1726MW," he said. Eng Njenga noted that demand for electricity in the country is on the rise, and hence the need to increase production as more investors seek opportunities in the country.