Power generator KenGen has unveiled a 10-year strategy to increase the country’s installed electricity capacity by 1,500 megawatts and introduce 500 megawatt-hours of energy storage.
Speaking during the second Sustainable Energy Conference in Olkaria, Naivasha, yesterday, KenGen CEO Peter Njenga said the plan—estimated to cost $4.3 billion (Sh555 billion)—will require innovative financing models and strong partnerships.
“We have embarked on this journey with a shared commitment to enhancing energy security for our country,” said Mr Njenga.
He cited KenGen’s pioneering geothermal direct-use projects in Olkaria—including the geothermal spa, agricultural and industrial pilots and the envisioned hydrogen power pilot plant—as proof that the firm is ready to push the boundaries of innovation. He also underscored the need for regional cooperation under initiatives such as the East African Power Pool, policy alignment by governments, investor financing, innovation and sustainable community practices.
The three-day conference themed “Renewable Energy for Sustainable Development”, brought together energy experts, investors and policymakers from across the continent to explore Africa’s role in driving the global clean energy agenda.
Nation Media Group Managing Director and CEO Geoffrey Odundo said NMG’s role in the sustainability agenda has moved beyond simply reporting stories to actively shaping narratives and influencing realities.
“Climate change is the existential crisis of our time and clean energy is the future and we established the climate desk at NMG in 2023 to communicate impact of climate change, provide a platform for affected communities and raise awareness of effective solutions to climate change,” he said in a speech read on his behalf by NMG Editor-In-Chief Joe Ageyo.
Nation Media Group Editor-In-Chief Joe Ageyo (left) with Kenya Electricity Generating Company PLC (KenGen) Managing Director & CEO Peter Njenga during the Sustainable Energy Conference at Olkaria, Naivasha, Nakuru County on September 17, 2025.
Photo credit: Dennis Onsongo | Nation
Meanwhile, the Executive is lobbying Parliament to lift the freeze on new power purchase agreements to allow Kenya Power to avert a looming electricity generation crisis. Energy Principal Secretary Alex Wachira yesterday said that the Energy ministry and the National Assembly’s Energy committee have already agreed to lift the moratorium.
At the same time, the executive is lobbying Parliament to lift the freeze on new Power Purchase Agreements (PPAs), allowing Kenya Power to onboard new power plants and avert a looming electricity generation crisis.
Energy Principal Secretary Alex Wachira on Wednesday said that the ministry and the National Assembly Committee on Energy have already agreed to lift the moratorium. The committee will next week table a report for adoption by lawmakers.
Mr Wachira had earlier said that he expected Parliament to lift the freeze in June this year, with Kenyans keen to see if his latest promise on ending the ban on PPAs will come to pass and allow Kenya Power to resume new deals with power producers.
Questions on current deal
Kenya Power has not signed any new PPAs since 2018 following a freeze meant to allow for an investigation into existing deals where power producers are selling electricity to Kenya Power at exorbitant prices, denying consumers cheap electricity.
The freeze, coupled with a rising local consumption, has significantly eaten into the reserve margins and pushed them to below four percent, forcing Kenya Power to ration supply in some regions in a bid to ensure the grid remains stable during peak demand hours.
“We have been in conversations with the energy committee of Parliament and a report is ready. We are anticipating that next week, when Parliament resumes, they shall lift the moratorium,” Mr Wachira said on Wednesday at the Sustainable Energy Conference in Olkaria, Naivasha.
Eng Rosaline Muhia (Left), Young Director (operations), Punet Shamshery (Centre) and Eng Rehema Ocharo during the Sustainable Energy Conference held at Olkaria in Naivasha, Nakuru County, on September 17, 2025.
Photo credit: Dennis Onsongo | Nation
The conference has drawn top State officials in the energy sector, their colleagues in the private sector and financiers as the country seeks to further exploit its vast potential in clean energy sources.
The shrinking reserve margin –extra generation capacity available above demand— comes at a time when the peak demand for electricity has jumped by more than 45MW since the start of this year.
Global industry standards recommend a range of 20-35 percent for reserve margins, with Kenya Power severally raising concerns of a generation crisis if the freeze on new PPAs is not lifted.
Kenya recorded seven new demand peaks in 2024 alone, pointing to a rapidly growing appetite for electricity in homes, industries, and businesses. Kenya has an installed capacity of 3,811.60Megawatts (MW) of electricity.
Besides rationing some regions in to safeguard the grid from shocks during peak demand, Kenya Power is also in talks with the Ethiopia Electric Power (EEP) to tap an additional 50-100MW.
The 50-100MW will be in addition to the up to 200MW that Kenya is currently shipping from Ethiopia under a 27-year deal.
Kenya risks being plunged into an electricity crisis in case of major disruptions on the line evacuating electricity from Ethiopia, underlining the precarious state of overly relying on the Horn of Africa nation.
Parliament is in recess and will resume sittings next week, with lifting of the freeze on PPAs being a priority item in the order of business.
Cabinet lifted the moratorium on new PPAs in February 2023, but lawmakers reinstated it on grounds that they needed to first scrutinise the existing deals between Kenya Power and power producers.
