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KenGen remains the dominant force in Kenya’s electricity sector, accounting for 58.97% of the country’s total power generation in the financial year 2024/25, according to the latest report by the Energy and Petroleum Regulatory Authority (EPRA).
While its market share has declined slightly from past years, KenGen continues to be the backbone of Kenya’s energy, even as Independent Power Producers (IPPs) and imports make significant inroads.
KenGen’s Stronghold in the Energy Sector
During the period under review, KenGen generated 8,411.3 GWh, sourced from its diverse portfolio, which includes geothermal, hydro, wind, and thermal sources.
Although its share has slipped from 63.94% in 2020/21, KenGen’s role as the country’s principal supplier remains unchallenged.
Its geothermal plants, particularly in Olkaria, and its hydropower dams along major rivers continue to form the backbone of Kenya’s grid.
These resources ensure stability while reducing reliance on thermal imports and high-cost emergency power.
Lake Turkana Power Supply and Surge in Imports
Among private producers, Lake Turkana Wind Power (LTWP) has emerged as the largest contributor, supplying 1,436.57 GWh, or 9.99% of the country’s electricity in the 2024/25 fiscal year.
While its share is slightly down from the 12.07% recorded in 2022/23, LTWP remains a key player in the renewable space.
Located in Marsabit County, the project has proven the value of large-scale private investment in wind power, offering a dependable complement to state-driven generation.
Kenya’s imports have surged, according to the report, rising to 10.66% of total supply in 2024/25, compared to just 1.03% in 2020/21.
Ethiopia was the largest external supplier, contributing 8.86% through its expansive hydropower projects, particularly the Grand Ethiopian Renaissance Dam, with imports from Uganda and Tanzania supplementing the balance.
This growing reliance on imports reflects both rising domestic demand and occasional local generation shortfalls.
For Kenya, Ethiopian electricity offers a competitively priced and relatively clean option, though it raises questions about long-term energy security.
Geothermal IPPs Provide Stability
Geothermal IPPs remain vital to the sector’s stability.
OrPower4, a long-standing private producer, supplied 875.89 GWh, or 6.14% of the total national output.
Meanwhile, Sosian Menengai Geothermal provided 124.35 GWh, or 0.87%, marking the integration of new geothermal fields into the national grid.
These projects underscore the crucial role of geothermal energy in Kenya’s long-term renewable energy objectives.
Rabai Power, a thermal plant, generated 2.94%, while Kipeto Energy PLC, a wind farm in Kajiado County, added 1.57%.
Smaller solar and thermal facilities such as Thika Power and Alten Kenya Solar contributed less than 0.1% each.
What Next for Kenya
KenGen remains the dominant supplier, but its share is narrowing as imports and IPPs expand.
The rise of Ethiopian hydropower highlights both opportunity and vulnerability, offering an affordable supply while creating external dependence.
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To achieve long-term stability, Kenya must accelerate its domestic generation, particularly in geothermal energy, while integrating new wind and solar projects.
Strengthening transmission and regional interconnections will be crucial in managing the rising demand.
The sector’s future will be defined by how effectively Kenya balances KenGen’s leadership, private investment, and regional trade to maintain reliable, affordable, and sustainable electricity.
KenGen’s Projects
Geothermal remains at the heart of KenGen’s expansion, with the utility recently adding 83MW at Olkaria I Unit 6, further strengthening its geothermal stronghold in Naivasha.
Construction plans are also underway for Olkaria VI, projected at around 140MW, and Olkaria VII, expected to deliver 80.3MW once completed.
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These projects are being pursued under a public-private partnership model, signaling KenGen’s intent to attract new financing streams while meeting growing demand.
At the same time, the company has begun redeveloping the original Olkaria I plant, which has served Kenya for decades.
The modernization aims to replace aging units, extend the plant’s life by 25 years, and raise capacity above its current 45 MW.
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